NV MLO flashcards

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

Loan Estimate Timing

The creditor must deliver or mail the Loan Estimate no later than three business days after receiving the application, and the borrower must receive it at least seven business days before consummation.

Closing Disclosure Three-Day Rule

The borrower must receive the Closing Disclosure at least three business days before consummation; if the APR increases by more than one-eighth of a percent, a revised disclosure restarts the waiting period.

Adverse Action Notice Period

Under ECOA and Regulation B, a creditor must notify the applicant of adverse action within 30 days after receiving a completed application, stating the reasons or how to request them.

Section 8 Kickback Ban

RESPA prohibits giving or receiving any fee, kickback, or thing of value in exchange for referrals of settlement service business connected to a federally related mortgage loan.

HOEPA APR Trigger

A first-lien loan is high-cost under HOEPA when its APR exceeds the average prime offer rate by more than 6.5 percentage points; the subordinate-lien trigger is 8.5 points.

Qualified Mortgage Points Cap

The general Qualified Mortgage limits points and fees to 3 percent of the loan amount for loans of $100,000 or more, with higher percentage caps for smaller loan amounts.

Flood Insurance Mandate

Federally regulated lenders must require flood insurance when the improved property securing the loan lies in a Special Flood Hazard Area, and must escrow premiums on residential loans.

Right of Rescission

Borrowers have three business days to cancel certain refinances and home equity loans secured by their principal residence; purchase-money loans, investment properties, and second homes are exempt.

Loan-to-Value Ratio

Loan-to-value is the loan amount divided by the lesser of the property's appraised value or the purchase price, expressed as a percentage; higher LTV generally requires mortgage insurance.

Combined Loan-to-Value

Combined loan-to-value divides the total of all liens against a property, meaning the first mortgage plus any second mortgage or HELOC, by the property's appraised value.

PITI Payment Components

PITI is the monthly housing payment of principal, interest, property taxes, and hazard insurance; lenders also count mortgage insurance, HOA dues, and flood premiums where applicable.

FHA Upfront Mortgage Premium

FHA charges an upfront mortgage insurance premium equal to 1.75 percent of the base loan amount, which may be financed into the loan, plus an annual premium paid monthly.

Annual Percentage Rate

The annual percentage rate expresses the cost of credit as a yearly rate, incorporating the interest rate plus certain finance charges such as origination fees and mortgage insurance premiums.

ARM Rate Caps

Adjustable-rate mortgages disclose an initial cap, a periodic adjustment cap limiting each change, and a lifetime cap limiting the total increase over the loan's term.

Conforming Loan Limit

The maximum loan amount eligible for purchase by Fannie Mae and Freddie Mac, set annually by the FHFA and varying by county; loans above it are non-conforming or jumbo.

Six-Piece Application Rule

Under TRID, an application exists once the creditor receives the consumer's name, income, Social Security number, property address, estimated value, and loan amount.

Intent to Proceed

The borrower's clear indication that they wish to continue with the loan; no fees may be collected before it is received, except a bona fide credit report fee.

Rate Lock Disclosure

A lender commitment to a specified interest rate for a set period; the lock and its expiration must appear on the Loan Estimate, and a new lock requires a revised disclosure.

Automated Underwriting System

Software such as Desktop Underwriter or Loan Prospector that evaluates the application against investor guidelines and returns an approve/eligible, refer, or caution recommendation.

Gift Letter

A signed statement from a donor confirming that funds given toward closing are a gift, not a loan, and that no repayment is expected; it is paired with transfer documentation.

Uniform Residential Loan Application

Form 1003, which collects borrower information including employment, income, assets, liabilities, and the property securing the requested loan.

Deed of Trust

A security instrument used in many states, including Nevada, that conveys title to a trustee to secure the loan and typically permits non-judicial foreclosure.

Occupancy Fraud

Falsely stating an intent to occupy a home as a primary residence in order to obtain a lower rate or a higher loan-to-value; a federal offense.

Duty of Confidentiality

An originator must protect nonpublic personal information obtained during the transaction, disclosing it only to parties with a legitimate need and consistent with privacy law.

Steering

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

Disparate Impact

A lending practice that is neutral on its face but disproportionately excludes or harms members of a protected class and is not justified by business necessity.

Mortgage Fraud

Knowingly making a false statement or omitting material information on a loan application, appraisal, or supporting document, prosecuted under federal statutes such as 18 U.S.C. 1014.

NMLS Unique Identifier

A permanent number assigned to each licensed mortgage loan originator that must appear on loan documents and advertising so consumers can look up the originator's record.

Pre-Licensure Education Hours

The SAFE Act requires at least 20 hours of pre-licensure education covering federal law, ethics, non-traditional lending, and general mortgage knowledge, plus a passing licensing test.

Annual Continuing Education

Eight hours per year, including 3 hours ethics, 2 hours non-traditional lending, 2 hours federal law, and 1 hour of general instruction, completed by December 31.

NMLS Renewal Window

Annual license renewal opens November 1 and closes December 31; an originator who misses the deadline may not originate loans until the license is reinstated.

Nevada Mortgage Regulator

Nevada's Division of Mortgage Lending licenses mortgage companies and originators through NMLS under NRS 645B for mortgage brokers and NRS 645E for mortgage bankers.