Louisiana MLO flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Louisiana mortgage regulator

The Office of Financial Institutions (OFI) within the Louisiana Department of Insurance and Financial Institutions licenses and examines mortgage brokers, lenders, and originators under the Residential Mortgage Lending Act.

Louisiana MLO pre-licensing hours

20 hours of NMLS-approved education: 3 federal law, 3 ethics, 2 nontraditional mortgage lending, and 12 hours of Louisiana-specific content on state law and practice.

Louisiana MLO continuing education

8 annual hours: 3 federal law and regulation, 2 ethics, 2 nontraditional mortgage lending, and 1 Louisiana-specific hour, reported through NMLS before the December 31 renewal deadline.

Louisiana license renewal date

Louisiana MLO and entity licenses expire each December 31. Renewal requires completed CE, an NMLS MU4 filing, and payment of OFI fees before expiration to avoid a new application.

Sponsorship requirement

A Louisiana-licensed originator must be sponsored by a licensed Louisiana mortgage broker or lender, and the sponsorship must be recorded in NMLS before the originator may take applications.

Louisiana surety bond

OFI requires licensed mortgage brokers and lenders to maintain a surety bond scaled to loan volume. Originators are covered by the sponsoring entity's bond rather than posting their own.

Louisiana records retention

Licensees must keep mortgage transaction records for at least 3 years after funding or withdrawal of the application and make them available for OFI examination.

Advance fee restriction

Louisiana rules restrict collecting upfront fees before services are performed and require written broker agreements with good-faith estimates of charges.

OFI disciplinary authority

OFI may deny, suspend, or revoke a license for fraud, dishonest dealing, unlicensed activity, or other violations under La. R.S. 6:1092 after investigation and notice.

Fingerprint background check

Louisiana applicants submit fingerprints for FBI and state criminal history checks and authorize a credit report as part of the NMLS application review.

NMLS unique identifier on ads

Federal and Louisiana rules require the originator's NMLS unique identifier to appear clearly on advertising and mortgage loan documents provided to consumers.

Louisiana examination authority

OFI may examine books and records of licensees and investigate consumer complaints, and licensees must cooperate with examinations and produce requested documents.

SAFE Act purpose

The 2008 Secure and Fair Enforcement for Mortgage Licensing Act, Title V of HERA, created national licensing and registration standards for mortgage loan originators through the NMLS.

SAFE Act pre-licensure education

20 hours required: 3 federal law, 3 ethics, 2 nontraditional mortgage products, and 12 general mortgage knowledge, completed before taking the national licensing test.

NMLS national test format

The national test with uniform state content has 125 questions in 190 minutes. A scaled score of 75 passes; retakes require a 30-day wait, and 180 days after a third failure.

MLO definition under SAFE

An individual who takes a residential mortgage loan application and offers or negotiates terms for compensation or gain. Clerical staff who do neither are excluded.

MU4 form

The NMLS individual license application form that collects identity, employment, background, and disclosure information and is filed by the originator with each state.

Regulation G registration

CFPB rule implementing SAFE Act registration for employees of banks and certain regulated institutions, who register rather than obtain state licenses.

Business day definition

For Regulation Z disclosure timing, a business day is any day except Sunday and federal legal public holidays for the general definition, while a stricter definition applies to the 3-day CD review period.

Loan Estimate delivery

The Loan Estimate must be delivered or placed in the mail no later than 3 business days after the creditor receives the consumer's application.

Closing Disclosure timing

The consumer must receive the Closing Disclosure at least 3 business days before consummation; a revised CD with changed terms restarts the review period.

Ability-to-repay rule

Regulation Z requires creditors to verify income, assets, debts, and employment and consider the consumer's ability to repay before extending a covered residential mortgage loan.

Qualified mortgage

A loan meeting Regulation Z standards, such as the general QM price-based threshold, that receives safe harbor or rebuttable presumption protection from ATR liability.

APOR

The average prime offer rate published by the CFPB, used to measure loan pricing for high-cost and qualified mortgage thresholds.

Anti-steering rule

Regulation Z bars steering a consumer to a loan that is not in the consumer's interest and restricts originator compensation tied to loan terms.

Dual compensation prohibition

A loan originator may not receive compensation from both the consumer and the creditor for the same transaction, and compensation may not vary with loan terms.

RESPA Section 8

Prohibits kickbacks and unearned fee splits for referrals of settlement service business and requires disclosure of affiliated business arrangements.

HMDA reporting

Regulation C requires covered lenders to collect and report data on applications, originations, denials, race, ethnicity, sex, and pricing for residential mortgage loans.

ECOA adverse action notice

Regulation B requires written notice of adverse action within 30 days of a completed application, stating reasons or how to request them.

Nontraditional mortgage products

Loans such as interest-only, payment-option, and other products with deferred principal or variable payments that carry heightened disclosure and qualification requirements.

Consumer complaint database

NMLS maintains a public database of consumer complaints against licensees that state regulators review during licensing and examination.

Temporary authority to originate

A federal provision allowing certain registered originators moving between institutions to originate for a limited period while a new state license application is pending.