NV MLO cheat sheet

RESPA/TILA integrated disclosure: the Loan Estimate must be delivered or placed in the mail no later than 3 business days after the creditor receives the application, and the borrower must receive it at least 7 business days before consummation.

The Closing Disclosure must be received at least 3 business days before consummation; an APR increase of more than 1/8% (1/4% for irregular transactions) requires a revised CD that restarts the 3-business-day waiting period.

ECOA/Regulation B: adverse action notice is due within 30 days after a completed application and must state the action taken, the specific reasons or how to request them, and the ECOA anti-discrimination notice.

SAFE Act minimums: 20 hours pre-licensure education (3 federal law, 3 ethics, 2 non-traditional lending, remainder general), a passing score of 75%, and 8 hours of annual CE including 3 ethics, 2 non-traditional, and 2 federal law.

HOEPA high-cost triggers: first-lien APR exceeding the average prime offer rate by more than 6.5 percentage points (8.5 for subordinate liens), or points and fees exceeding 5% of the loan amount above the annually adjusted $1,000 floor.

Ability-to-Repay/General QM: 43% DTI limit, 3% points-and-fees cap, no negative amortization, no interest-only payments, no balloon payments, and a term not exceeding 30 years.

Flood Disaster Protection Act: flood insurance is mandatory when the improved property is in a Special Flood Hazard Area and the loan is made by a federally regulated lender; escrow of flood premiums is required for residential loans.

Right of rescission: 3 business days for a refinance or home equity loan secured by the principal residence; it does not apply to purchase-money loans, investment property, or second homes.

HMDA (Regulation C) requires covered institutions to collect and report applicant ethnicity, race, sex, age, income, and rate spread; TILA APR accuracy tolerance is 1/8% for regular and 1/4% for irregular transactions.

LTV = loan amount ÷ the lesser of the sales price or appraised value; CLTV = (first lien + all subordinate liens) ÷ value.

PITI = principal + interest + property taxes + hazard insurance; FHA and many conventional loans add monthly mortgage insurance or MIP, and HOA dues count in qualifying ratios.

FHA: 3.5% minimum down payment at a 580 score, 1.75% upfront mortgage insurance premium (financed allowed), annual MIP paid monthly, maximum base LTV of 96.5%.

VA: 0% down for eligible veterans, no monthly mortgage insurance, and a one-time VA funding fee that varies with down payment amount and prior use of the entitlement.

Conforming loan limits are set annually by the FHFA on a county basis; loans above the applicable limit are non-conforming (jumbo) and ineligible for Fannie Mae or Freddie Mac delivery.

DTI = total monthly obligations ÷ gross monthly income; the front-end housing ratio counts only PITI plus HOA dues, while the back-end ratio adds all installment and revolving debt.

ARM structure is quoted as index + margin = fully indexed rate, with initial, periodic, and lifetime caps; the fully indexed rate differs from the note rate during the fixed period.

A fully amortizing loan retires principal to zero at maturity; a balloon loan leaves a lump sum due; interest-only periods do not reduce principal balance.

Ginnie Mae securitizes government-insured loans (FHA, VA, USDA); Fannie Mae and Freddie Mac purchase conventional conforming loans.

Under TRID, a loan application exists once the creditor has six pieces of information: consumer name, income, Social Security number, property address, estimated value, and loan amount.

The borrower's Intent to Proceed must be received before any fee is collected, except a bona fide credit report fee.

Rate locks must be disclosed in the Rate Lock section of the Loan Estimate; a rate lock obtained after the LE is issued requires a revised LE within 3 business days.

Standard income documentation: 30 days of pay stubs, two years of W-2s or tax returns, two months of bank statements, and a signed gift letter with transfer evidence for gift funds.

Automated underwriting findings dictate documentation and eligibility; an AUS refer or a manual underwrite requires compensating factors such as cash reserves or a low DTI.

Appraisals must conform to USPAP; FHA loans require an FHA-roster appraiser, and the borrower must receive a copy of the appraisal no later than 3 business days before closing.

At closing the borrower executes the promissory note (the repayment promise) and the security instrument, which is a mortgage or a deed of trust pledging the property.

Final closing costs and terms flow through the Closing Disclosure, which must be delivered 3 business days before consummation; a changed circumstance may require a corrected CD.

RESPA Section 8 prohibits any fee, kickback, or thing of value for referrals of settlement service business; safe harbors include bona fide affiliate relationships, marketing services agreements, and cooperative advertising.

Occupancy fraud is a false statement of intent to occupy a property as a principal residence to obtain a lower rate or higher LTV; the misstatement, not the later move, is the violation.

Fiduciary-type duties to the borrower include loyalty, disclosure of material facts, confidentiality, and accounting for entrusted funds.

GLBA requires privacy notices, an opt-out right before sharing nonpublic personal information with nonaffiliated third parties, and reasonable safeguards for customer data.

Steering is directing a borrower to a loan with less favorable terms than the borrower qualifies for, often to increase compensation; it is barred by loan originator compensation rules and fair lending law.

Fair lending prohibits disparate treatment and disparate impact on the basis of race, color, religion, sex, national origin, familial status, and disability (FHA), plus age, marital status, and receipt of public assistance (ECOA).

Mortgage fraud is a federal crime; red flags include inflated appraisals, income inconsistent with the stated occupation, rapid resale at a higher price, and undisclosed subordinate financing.

Advertising must be accurate and non-misleading and must include the NMLS unique identifier; TILA triggering terms such as a down payment amount or payment figure require APR disclosure.

A mortgage loan originator must hold an active NMLS license sponsored by a licensed mortgage broker or lender; the unique identifier must appear on loan documents and advertising.

SAFE Act pre-licensure education is 20 hours; annual continuing education is 8 hours, including 3 hours ethics, 2 hours non-traditional lending, and 2 hours federal law.

NMLS annual renewal runs November 1 through December 31; CE must be completed by December 31, and a lapsed license bars origination until reinstated.

Licensees must report changes of name, address, and employment through NMLS and notify the state regulator within the prescribed period, commonly 30 days.

State regulators may examine books and records, issue subpoenas, and suspend or revoke a license for unlicensed activity, dishonest dealing, or failure to account for funds.

Mortgage loan business records generally must be retained for at least 3 years and produced to the regulator on request.

An individual may not be licensed as a mortgage loan originator for more than one mortgage company at the same time.

Nevada licenses mortgage companies and originators through the Division of Mortgage Lending and NMLS under NRS 645B (mortgage brokers) and NRS 645E (mortgage bankers).