MI MLO cheat sheet

RESPA Section 8 prohibits giving or receiving anything of value for the referral of settlement service business; Section 10 caps escrow account deposits and generally bars required reserves exceeding one-sixth of annual disbursements.

TILA/Regulation Z requires disclosure of the annual percentage rate (APR), finance charge, amount financed, and total of payments; the APR reflects the cost of credit as a yearly rate including certain fees.

TRID (TILA-RESPA Integrated Disclosure) rule: the Loan Estimate must be delivered or placed in the mail no later than 3 business days after receiving the application; the Closing Disclosure must be received by the consumer at least 3 business days before consummation.

A valid TRID application consists of six pieces of information: consumer name, income, Social Security number, property address, estimated value, and loan amount.

Regulation Z ability-to-repay: general qualified mortgage standards include points-and-fees limits, no negative amortization, no interest-only, no balloon payments, and a maximum debt-to-income ratio; the points-and-fees threshold is generally 3% of the loan amount for loans of $100,000 or more.

ECOA/Regulation B prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, or good-faith exercise of rights under the Consumer Credit Protection Act.

HMDA requires covered lenders to collect and report data on applications, originations, denials, and pricing; the CFPB publishes the data for public review.

The Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability; the Department of Housing and Urban Development enforces it.

SAFE Act requires mortgage loan originators to be registered in the Nationwide Multistate Licensing System (NMLS) and to pass a qualified written test, complete pre-licensing education, and satisfy annual continuing education.

Loan-to-value (LTV) = loan amount divided by the lesser of the sales price or appraised value; combined LTV (CLTV) = (first lien + subordinate lien) divided by value.

Amortization: monthly principal-and-interest payment on a fixed-rate loan = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is the number of payments.

A 1% discount point costs 1% of the loan amount and typically lowers the interest rate; points are generally tax-deductible as mortgage interest in the year paid.

PITI (principal, interest, taxes, insurance) is the standard housing expense used in debt-to-income calculations; total DTI compares all monthly debt obligations to gross monthly income.

Fixed-rate mortgages have a constant interest rate and payment; adjustable-rate mortgages (ARMs) have an initial fixed period, then adjust based on an index plus margin, subject to periodic and lifetime caps.

FHA loans require mortgage insurance premium (MIP): an upfront premium and an annual premium; conventional loans with LTV above 80% typically require private mortgage insurance (PMI).

VA loans are guaranteed by the Department of Veterans Affairs and generally require no down payment; the VA funding fee varies by down payment and prior use of the benefit.

Conforming loan limits are set by the Federal Housing Finance Agency (FHFA); loans above the limit are non-conforming jumbo loans.

Escrow/impound accounts hold funds for property taxes and insurance; lenders must follow RESPA escrow accounting rules and conduct annual escrow analysis.

Pre-qualification is an informal estimate of borrowing capacity; pre-approval involves verification of income, assets, and credit and produces a conditional commitment.

The loan application process includes collecting the six TRID application elements, pulling credit, verifying income and assets, ordering an appraisal, and obtaining title and flood determinations.

Underwriting evaluates the four Cs: credit, capacity (income and DTI), capital (assets and reserves), and collateral (appraised value and LTV).

The appraisal must be an independent valuation; loan originators may not improperly influence appraisers, and borrowers must receive a copy of the appraisal.

A lock-in agreement fixes the interest rate for a specified period; a float-down option allows the rate to drop if market rates fall before closing.

Required disclosures and timing: Loan Estimate within 3 business days of application; Closing Disclosure at least 3 business days before consummation; revised disclosures may require a new waiting period.

Closing involves a settlement statement, title insurance, deed recording, and disbursement of funds; the loan originator must ensure all conditions are satisfied before closing.

Fair lending and anti-fraud: originators must avoid steering, verify borrower information, and report suspected fraud; misrepresenting income or occupancy is mortgage fraud.

Continuing education and NMLS registration must be maintained; originators must update their NMLS record within required timeframes after changes.

Fiduciary duty: a mortgage loan originator must act in the borrower's best interest, disclose conflicts of interest, and avoid self-dealing.

Prohibited conduct includes kickbacks, fee splitting, steering borrowers to higher-cost loans, and misrepresenting loan terms or costs.

Confidentiality: borrower nonpublic personal information must be protected under the Gramm-Leach-Bliley Act (GLBA) and only shared as permitted.

Fair and honest dealing: originators must not discriminate, must provide accurate disclosures, and must not pressure borrowers into unsuitable products.

Anti-money-laundering (AML) and Bank Secrecy Act (BSA) obligations require reporting suspicious activity and maintaining customer identification programs.

Advertising must be accurate and not misleading; required disclosures such as the NMLS ID and Equal Housing Opportunity logo must appear where required.

Ethical originators document borrower intent and ability to repay, avoid predatory lending practices, and cooperate with regulators and auditors.

Whistleblower and complaint handling: originators should report unethical conduct and respond to borrower complaints promptly and truthfully.

Michigan mortgage loan originators must be licensed through the Nationwide Multistate Licensing System (NMLS) and meet Michigan's pre-licensing education and testing requirements.

The Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act (MBLSLA) regulates mortgage brokers, lenders, and servicers operating in Michigan; the Michigan Department of Insurance and Financial Services (DIFS) administers it.

Michigan requires licensees to maintain a surety bond and meet net worth or minimum capital requirements; the amounts depend on license type and volume.

Michigan law requires disclosure of fees and terms and prohibits unfair or deceptive practices; violations may result in license suspension, revocation, or fines.

Michigan's continuing education requirement for MLOs includes the federal SAFE Act annual CE (typically 8 hours, including 1 hour of Michigan-specific law) and timely NMLS renewal.

Michigan's mortgage loan originator license must be renewed annually; late renewal may require reinstatement and payment of additional fees.

Michigan law requires records retention for mortgage transactions and cooperation with DIFS examinations and investigations.

Michigan's consumer protection statutes, including the Mortgage Brokers, Lenders, and Servicers Act, prohibit fraudulent or dishonest conduct and require fair dealing with borrowers.

Michigan MLOs must comply with both state and federal law; where state law is stricter, the stricter standard applies.

RESPA Section 8 prohibits giving or receiving anything of value for the referral of settlement service business; Section 10 caps escrow account deposits and generally bars required reserves exceeding one-sixth of annual disbursements.

TILA/Regulation Z requires disclosure of the annual percentage rate (APR), finance charge, amount financed, and total of payments; the APR reflects the cost of credit as a yearly rate including certain fees.

TRID (TILA-RESPA Integrated Disclosure) rule: the Loan Estimate must be delivered or placed in the mail no later than 3 business days after receiving the application; the Closing Disclosure must be received by the consumer at least 3 business days before consummation.

A valid TRID application consists of six pieces of information: consumer name, income, Social Security number, property address, estimated value, and loan amount.

Regulation Z ability-to-repay: general qualified mortgage standards include points-and-fees limits, no negative amortization, no interest-only, no balloon payments, and a maximum debt-to-income ratio; the points-and-fees threshold is generally 3% of the loan amount for loans of $100,000 or more.

ECOA/Regulation B prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, or good-faith exercise of rights under the Consumer Credit Protection Act.

HMDA requires covered lenders to collect and report data on applications, originations, denials, and pricing; the CFPB publishes the data for public review.

The Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability; the Department of Housing and Urban Development enforces it.

SAFE Act requires mortgage loan originators to be registered in the Nationwide Multistate Licensing System (NMLS) and to pass a qualified written test, complete pre-licensing education, and satisfy annual continuing education.

Loan-to-value (LTV) = loan amount divided by the lesser of the sales price or appraised value; combined LTV (CLTV) = (first lien + subordinate lien) divided by value.

Amortization: monthly principal-and-interest payment on a fixed-rate loan = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is the number of payments.

A 1% discount point costs 1% of the loan amount and typically lowers the interest rate; points are generally tax-deductible as mortgage interest in the year paid.

PITI (principal, interest, taxes, insurance) is the standard housing expense used in debt-to-income calculations; total DTI compares all monthly debt obligations to gross monthly income.

Fixed-rate mortgages have a constant interest rate and payment; adjustable-rate mortgages (ARMs) have an initial fixed period, then adjust based on an index plus margin, subject to periodic and lifetime caps.

FHA loans require mortgage insurance premium (MIP): an upfront premium and an annual premium; conventional loans with LTV above 80% typically require private mortgage insurance (PMI).

VA loans are guaranteed by the Department of Veterans Affairs and generally require no down payment; the VA funding fee varies by down payment and prior use of the benefit.

Conforming loan limits are set by the Federal Housing Finance Agency (FHFA); loans above the limit are non-conforming jumbo loans.

Escrow/impound accounts hold funds for property taxes and insurance; lenders must follow RESPA escrow accounting rules and conduct annual escrow analysis.

Pre-qualification is an informal estimate of borrowing capacity; pre-approval involves verification of income, assets, and credit and produces a conditional commitment.

The loan application process includes collecting the six TRID application elements, pulling credit, verifying income and assets, ordering an appraisal, and obtaining title and flood determinations.

Underwriting evaluates the four Cs: credit, capacity (income and DTI), capital (assets and reserves), and collateral (appraised value and LTV).

The appraisal must be an independent valuation; loan originators may not improperly influence appraisers, and borrowers must receive a copy of the appraisal.

A lock-in agreement fixes the interest rate for a specified period; a float-down option allows the rate to drop if market rates fall before closing.

Required disclosures and timing: Loan Estimate within 3 business days of application; Closing Disclosure at least 3 business days before consummation; revised disclosures may require a new waiting period.

Closing involves a settlement statement, title insurance, deed recording, and disbursement of funds; the loan originator must ensure all conditions are satisfied before closing.

Fair lending and anti-fraud: originators must avoid steering, verify borrower information, and report suspected fraud; misrepresenting income or occupancy is mortgage fraud.

Continuing education and NMLS registration must be maintained; originators must update their NMLS record within required timeframes after changes.

Fiduciary duty: a mortgage loan originator must act in the borrower's best interest, disclose conflicts of interest, and avoid self-dealing.

Prohibited conduct includes kickbacks, fee splitting, steering borrowers to higher-cost loans, and misrepresenting loan terms or costs.

Confidentiality: borrower nonpublic personal information must be protected under the Gramm-Leach-Bliley Act (GLBA) and only shared as permitted.

Fair and honest dealing: originators must not discriminate, must provide accurate disclosures, and must not pressure borrowers into unsuitable products.

Anti-money-laundering (AML) and Bank Secrecy Act (BSA) obligations require reporting suspicious activity and maintaining customer identification programs.

Advertising must be accurate and not misleading; required disclosures such as the NMLS ID and Equal Housing Opportunity logo must appear where required.

Ethical originators document borrower intent and ability to repay, avoid predatory lending practices, and cooperate with regulators and auditors.

Whistleblower and complaint handling: originators should report unethical conduct and respond to borrower complaints promptly and truthfully.

Michigan mortgage loan originators must be licensed through the Nationwide Multistate Licensing System (NMLS) and meet Michigan's pre-licensing education and testing requirements.

The Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act (MBLSLA) regulates mortgage brokers, lenders, and servicers operating in Michigan; the Michigan Department of Insurance and Financial Services (DIFS) administers it.

Michigan requires licensees to maintain a surety bond and meet net worth or minimum capital requirements; the amounts depend on license type and volume.

Michigan law requires disclosure of fees and terms and prohibits unfair or deceptive practices; violations may result in license suspension, revocation, or fines.

Michigan's continuing education requirement for MLOs includes the federal SAFE Act annual CE (typically 8 hours, including 1 hour of Michigan-specific law) and timely NMLS renewal.

Michigan's mortgage loan originator license must be renewed annually; late renewal may require reinstatement and payment of additional fees.

Michigan law requires records retention for mortgage transactions and cooperation with DIFS examinations and investigations.

Michigan's consumer protection statutes, including the Mortgage Brokers, Lenders, and Servicers Act, prohibit fraudulent or dishonest conduct and require fair dealing with borrowers.

Michigan MLOs must comply with both state and federal law; where state law is stricter, the stricter standard applies.