OK MLO flashcards
OK MLO · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- RESPA Section 8
- Prohibits giving or receiving anything of value for referrals of settlement-service business. Violations carry treble damages and fines up to $10,000 per violation.
- Loan Estimate timing
- Must be delivered or placed in the mail within three business days after the borrower submits an application containing the six triggering items.
- Closing Disclosure timing
- Borrower must receive it at least three business days before consummation. Certain changed terms require a revised CD and a new waiting period.
- Right of rescission
- Gives the borrower three business days to cancel a refinance or home-equity loan secured by a principal dwelling, under TILA and Regulation Z.
- ECOA adverse action
- Creditor must notify the applicant of action taken within 30 days of a completed application, stating reasons or the right to request them.
- HMDA reporting
- Regulation C requires covered lenders to collect and report loan-level data, including applicant ethnicity, race, sex, and loan pricing.
- Flood insurance requirement
- Improved structures in Special Flood Hazard Areas on federally related loans require flood insurance, with notice and escrow rules under the Flood Disaster Protection Act.
- SAFE Act licensing
- Requires mortgage loan originators to meet pre-licensing education, testing, and continuing education requirements and to register through the NMLS.
- Loan-to-value ratio
- Loan amount divided by property value or purchase price, whichever is lower. Combined LTV adds all liens secured by the property.
- Back-end debt-to-income
- Total monthly obligations, including the proposed housing payment, divided by gross monthly income. Used to assess repayment capacity.
- ARM caps
- Adjustable-rate mortgages limit rate changes by an initial adjustment cap, periodic caps, and a lifetime cap above the start rate.
- Discount points
- Prepaid interest equal to one percent of the loan amount per point, paid to lower the interest rate over the loan term.
- PMI termination
- On conventional loans, borrower-requested cancellation is generally available at 80% LTV; automatic termination occurs at 78% LTV based on the amortization schedule.
- Escrow cushion limit
- RESPA limits the lender's escrow cushion to one-sixth of the estimated total annual disbursements for taxes and insurance.
- FHA versus conventional
- FHA loans are insured by HUD and carry mortgage insurance premiums; conventional loans are not government-insured and may require private mortgage insurance above 80% LTV.
- Six application items
- Borrower name, income, Social Security number, property address, estimated value, and loan amount trigger Loan Estimate delivery obligations.
- Rate lock disclosure
- A written agreement stating the locked rate, lock period, and any fees, including whether a float-down option is available.
- Appraisal copy timing
- Lender must provide the borrower a copy of the appraisal promptly and no later than three days before closing, unless the borrower waives the timing.
- NMLS ID display
- The originator's unique identifier must appear on loan documents and advertisements under SAFE Act and state requirements.
- Adverse action notice
- Written notice within 30 days of a completed application when credit is denied, stating the reasons or the right to request them.
- Fiduciary duty
- The originator must place the borrower's interests above personal compensation and disclose conflicts of interest in writing.
- GLBA privacy rule
- Limits sharing of nonpublic personal information and requires privacy notices and opt-out rights where applicable.
- Fair lending disparate impact
- A neutral policy that disproportionately harms a protected group may violate fair lending law even without discriminatory intent.
- Suspicious Activity Report
- A confidential report filed with FinCEN when a transaction appears related to money laundering or fraud; the customer must not be tipped off.
- Oklahoma licensing agency
- The Oklahoma Department of Consumer Credit licenses mortgage loan originators under OSFEMLA, with the NMLS as the system of record.
- Oklahoma pre-licensing hours
- Twenty hours of pre-licensing education, including three hours of federal law, three hours of ethics, and two hours of nontraditional mortgage products.
- Oklahoma continuing education
- Eight hours annually, including three hours of federal law, two hours of ethics, and two hours of nontraditional mortgage products.
- Oklahoma renewal deadline
- Licenses expire December 31 and must be renewed annually through the NMLS before that date to remain active.
- Oklahoma late fee limit
- Late fees on residential first mortgages are limited to five percent of the overdue payment under Oklahoma law.
- Oklahoma surety bond
- A mortgage broker license requires a surety bond set by rule that must remain in force while the license is active.
- Oklahoma examination authority
- The Department of Consumer Credit may examine licensed entities and require production of books and records on request.
- Oklahoma license revocation
- The Department may deny, suspend, or revoke a license for violations, fraud, or failure to meet licensing requirements, subject to hearing rights.