NC MLO flashcards

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

SAFE Act MLO definition

An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain.

NMLS unique identifier

The permanent number assigned to an MLO in the Nationwide Multistate Licensing System, used on license records, advertising, and required disclosures.

Pre-licensure education hours

SAFE Act minimum of 20 hours: 3 federal law, 3 ethics, 2 nontraditional mortgage products, and 12 general mortgage knowledge, completed through NMLS-approved providers.

Annual continuing education

Eight hours per year: at least 3 federal law, 2 ethics including fraud and fair lending, 2 nontraditional mortgage lending, and 1 elective hour.

Federal registration vs. licensing

Depository institution employees register through NMLS under federal rules; non-depository MLOs obtain state licenses from state regulators.

RESPA Section 8

Prohibits giving or receiving fees, kickbacks, or things of value for referrals of settlement service business; bona fide services actually performed may be compensated.

Closing Disclosure timing

The consumer must receive the Closing Disclosure at least three business days before consummation, triggering a new review period if certain terms change.

APR accuracy tolerance

The disclosed APR is accurate if within one-eighth of one percent for regular transactions and one-quarter of one percent for irregular transactions.

ECOA adverse action timing

A creditor must notify the applicant of adverse action within 30 days of receiving a completed application, stating specific reasons or the right to request them.

HMDA Regulation C

Requires covered financial institutions to collect, record, and report data on mortgage applications and originations, including applicant demographics and loan pricing.

Fair Housing Act protected classes

Race, color, religion, sex, national origin, familial status, and disability are protected in the sale, rental, and financing of dwellings.

GLBA privacy notice

Financial institutions must provide initial and annual privacy notices and allow consumers to opt out of certain sharing of nonpublic personal information with nonaffiliates.

NC Commissioner of Banks

The official who administers the North Carolina Mortgage Lending Act, licenses mortgage entities and MLOs, and may examine, suspend, or revoke licenses.

NC Mortgage Lending Act

Chapter 53, Article 19B of the North Carolina General Statutes, governing licensing and conduct of mortgage lenders, brokers, servicers, and loan originators.

Single employer rule

A licensed North Carolina mortgage loan originator may be employed by only one licensed mortgage lender or broker at any given time.

Cease and desist authority

The Commissioner may order a licensee or unlicensed person to stop violating the Mortgage Lending Act and may impose penalties and restitution.

NMLS license amendment

Licensees must report changes in name, address, control, or employment through NMLS within the time required by statute and rule.

NC advertising requirements

Mortgage advertising must be accurate, include the licensed name and NMLS identifier where required, and avoid misleading or deceptive claims.

Unearned fees prohibition

North Carolina prohibits charging or collecting fees for services not actually performed and prohibits unlawful kickbacks and referral fees.

NC unfair trade practices

Chapter 75 allows consumers to recover actual damages, treble damages for willful violations, and attorney fees for unfair or deceptive mortgage conduct.

Appraiser independence

Licensees may not coerce, influence, or attempt to influence an appraiser's independent judgment regarding the value of the property.

Unlicensed activity

Originating or negotiating mortgage loans without a valid North Carolina license, or using a scheme to evade licensing, is prohibited and subject to discipline.

NC record retention

Licensees must keep complete loan transaction records, including applications, disclosures, and closing documents, for the period required by statute and rule.

Examination cooperation

Licensees must produce books and records, respond to Commissioner inquiries, and permit examination of mortgage files and business operations.

Document integrity

Loan files must accurately reflect borrower information; altering, backdating, or forging documents or signatures is prohibited and grounds for discipline.

Continuing education certificates

MLOs must complete annual CE and retain completion certificates; failure to meet requirements can result in license expiration or non-renewal.

Qualified Mortgage

A loan meeting Regulation Z requirements, including ability-to-repay consideration and points-and-fees limits, that receives safe harbor or rebuttable presumption protection.

Debt-to-income ratio

Total monthly debt obligations divided by gross monthly income; conventional guidelines commonly use 28/36 or higher with compensating factors.

Loan-to-value ratio

Loan amount divided by the lesser of appraised value or purchase price; combined LTV includes subordinate liens and affects mortgage insurance requirements.

Adjustable-rate mortgage caps

ARMs adjust after an initial fixed period based on an index plus margin, subject to periodic and lifetime interest rate caps.

Disparate impact

A neutral lending policy or practice that has an unjustified discriminatory effect on a protected class, even without evidence of discriminatory intent.

Equal Housing Opportunity

The logotype and statement required in certain mortgage advertising and marketing materials to show compliance with fair housing laws.