NC MLO key terms

Federal law requiring mortgage loan originators to be licensed or registered through the NMLS, meet minimum standards, and be subject to state or federal supervision and enforcement.

The Nationwide Multistate Licensing System, a national online database used to submit, track, and renew mortgage loan originator and company licenses across participating states and agencies.

The permanent NMLS-assigned number that identifies a licensed mortgage loan originator, which must appear on applications, solicitations, and business cards as required by federal rules.

A limited period allowing a licensed MLO who moves to a new state-licensed employer to originate in the new state while a new license application is pending, if federal and state conditions are met.

The NMLS form used by mortgage loan originators to file or amend their individual record, including employment history, disclosures, and attestations about regulatory and criminal background.

The link between an MLO's NMLS record and a licensed mortgage company, confirming which employer the originator may legally originate loans for in that state.

The minimum number of hours of approved coursework a new mortgage loan originator must complete before being licensed, covering federal law, ethics, and state-specific requirements.

Annual required coursework that licensed mortgage loan originators complete to renew their license, covering federal and state law, ethics, and lending standards.

The Real Estate Settlement Procedures Act, a federal law governing disclosures, escrow practices, and limits on fees and kickbacks in federally related mortgage loans.

The TILA-RESPA Integrated Disclosure rules that combine and standardize mortgage disclosures into the Loan Estimate and Closing Disclosure, with timing and fee-tolerance requirements.

A three-page disclosure given to a mortgage applicant within three business days of application, showing estimated loan terms, projected payments, and closing costs.

The final disclosure provided to the borrower at least three business days before consummation, stating actual loan terms and closing costs for the transaction.

Limits on how much certain closing costs disclosed on the Loan Estimate may increase at settlement, categorized as zero, ten percent, or unlimited tolerance depending on the item.

The RESPA rule barring giving or accepting anything of value in exchange for referring settlement service business or splitting fees for services not actually performed.

An unearned payment or thing of value given to influence the referral of mortgage or settlement business, prohibited under RESPA and state law.

The Truth in Lending Act, a federal law requiring disclosure of credit terms and costs in a clear form and providing consumers with cancellation and other protections.

The annual percentage rate, a measure of the total cost of credit expressed as a yearly rate that includes certain finance charges, used to compare loan offers.

The consumer's right to cancel certain mortgage refinances and home equity loans secured by a primary residence within three business days of consummation or disclosure delivery.

The Equal Credit Opportunity Act, a federal law prohibiting discrimination in credit decisions based on protected characteristics and requiring notice of adverse action.

A written notice given to a consumer when credit is denied or terms are changed unfavorably, stating the reasons or how to obtain them.

The Home Mortgage Disclosure Act, which requires covered lenders to collect and report data on mortgage applications, originations, denials, and borrower characteristics.

A federal law prohibiting discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability.

The Gramm-Leach-Bliley Act, which requires financial institutions to safeguard consumer nonpublic personal information and provide privacy notices and opt-out rights.

A GLBA requirement that covered financial institutions maintain a written information security program with reasonable administrative, technical, and physical protections for customer data.

A disclosure telling consumers what nonpublic personal information a financial institution collects, how it shares that information, and what choices the consumer has.

The North Carolina official who administers the banking laws and the mortgage licensing system, with authority to license, examine, investigate, and discipline mortgage licensees.

The body that oversees the Commissioner of Banks and reviews certain licensing and enforcement decisions affecting North Carolina mortgage licensees.

A formal directive from the Commissioner of Banks ordering a person to stop unlicensed or unlawful mortgage activity, enforceable with civil penalties.

Originating or servicing mortgage loans in North Carolina without required licensure, which may trigger enforcement, penalties, and loss of eligibility to be licensed.

Conduct banned under North Carolina mortgage law, including fraud, misrepresentation, unlicensed activity, and improper handling of borrower funds or records.

The obligation of a mortgage licensee to act in the borrower's best interest, provide accurate information, and avoid conflicts of interest or self-dealing.

North Carolina requirements that advertisements for mortgage loans be accurate, not misleading, include required license identifiers, and disclose material terms such as rates.

The obligation of licensees to maintain complete mortgage transaction records and make them available to the Commissioner of Banks for examination for the required retention period.

The Commissioner of Banks' power to inspect books, records, and operations of licensees to verify compliance with mortgage laws and regulations.

The process of taking a mortgage application, gathering borrower information, and assisting the borrower through underwriting and closing of a loan.

The lender's evaluation of a borrower's credit, income, assets, and collateral to determine whether a loan should be approved and on what terms.

A borrower's total monthly debt payments divided by gross monthly income, a key measure used to assess ability to repay a mortgage.

The federal requirement that lenders make a reasonable, good-faith determination that a borrower can repay a mortgage based on verified income, assets, and debts.

The principle and legal requirement that credit decisions and services be provided without discrimination based on protected characteristics, enforced through ECOA, Fair Housing Act, and HMDA.

The illegal practice of denying or limiting credit or services to residents of certain neighborhoods, often based on race or ethnicity, rather than individual creditworthiness.

Directing a borrower toward or away from certain loan products or terms based on a protected characteristic rather than the borrower's needs and qualifications.