Prepare for the Florida Mortgage Loan Originator (MLO) state exam with these practice questions and answers. This guide covers Florida lending laws, state regulations, and licensing requirements.
Q: Financial Services Commission
Answer: The governor and cabinet who select two officials to regulate banking, securities, and insurance
Q: Division of Finance
Answer: Department responsible for licensing, examining and regulating non-depository financial services companies in Florida
Q: Bureau of Finance Regulation
Answer: Conducts examinations of the books and records of mortgage brokers, mortgage brokerage businesses and mortgage lenders to ensure compliance
Q: Bureau of Money Transmitter Regulation
Answer: Conducts examinations of funds transmitters, payment instrument sellers, currency exchangers, and payday lenders to ensure compliance
Q: Bureau of Regulatory Review
Answer: reviews applications and processes amendments and renewals for all individuals regulated by the division
Q: December 31st each year
Answer: Starting 2011 all licensed loan originators, brokers and lenders will be required to renew their license by…
Q: Regulatory Trust Fund of the office
Answer: All fees, charges, and fines collected in administration and enforcement of MLO regulations are deposited in…
Q: 8 hours
Answer: Amount of continuing education required for license maintenance
Q: October 1st, 2010
Answer: When did the new definitions for the types of mortgage licenses go into effect in Florida?
Q: 18 (with high school diploma or equivalent)
Answer: What is the minimum age for applying for an MLO license in Florida?
Q: December 31st
Answer: Final date for annual MLO license renewal in FL
Q: contracting work with more than one licensed employer
Answer: A loan originator licensee who acts solely as a loan processor is exempt from…
Q: The licensee must file an official declaration of intent to act solely as a loan processor.
Answer: In order to act solely as a loan processor
Q: They must withdraw their declaration of intent with the commissioner.
Answer: In the event a licensed loan processor wishes to begin taking mortgage loan applications, then…
Q: The company that employs the loan processor
Answer: The fee earned by a loan processor may be paid to…
Q: at all times
Answer: A loan processor who has declared intent must maintain licensure…
Q: That they will only be allowed to perform mortgage origination activities for one licensee.
Answer: If a loan processor withdraws declaration of intent, then they must also aknowledge…
Q: They are exempt from the requirement to be licensed.
Answer: If someone wishes to provide a mortgage to the purchaser of their own primary residence as a means to sell and finance the property, then…
Q: Exempt from the licensing requirements.
Answer: An attorney who negotiates the terms of a mortgage on behalf of a client as an ancillary matter is…
Q: October 1, 2011; $63,000; $125,000
Answer: On ____(date)____, the net worth requirement for FL mortgage lenders increased from ______ to _____
Q: Immediately cease taking new mortgage applications.
Answer: If a lender cannot maintain the net worth requirement, then they must…
Q: 120; 60
Answer: If a lender makes the office aware of failure to meet the net worth requirement, then they will have _____ days to satisfy the requirements. If the failure to meet requirements is discovered by the commissioner, then they will have _____ days.
Q: The lender license is deemed relinquished and cancelled.
Answer: If a lender fails to meet net worth requirements after notice is given, then…
Q: 4 months
Answer: If a licensee does not have a servicing endorsement, then they can only retain a loan in their own name for ______ after closing.
Q: 3 years
Answer: A licensee is required to keep records for a duration of ______ to ensure compliance
Q: Mortgage Guaranty Trust Fund
Answer: Surently bonds are replaced with this in FL
Q: fees charged to licensees
Answer: The Mortgage Guaranty Trust Fund is capitalized by…
Q: $20; $100
Answer: The Guaranty fund fee charged at license renewal is ____ for MLOs and ____ for brokers and lenders.
Q: A recorded final judgement from a court
Answer: In order to collect payment from the trust fund, a borrower must have…
Q: That they have done a search to ensure that the lender in violation does not have any assets that can be liquidated to cover the damages in the judgement.
Answer: Before a borrower can claim restitutions from the trust fund, their efforts must reflect…
Q: $50,000
Answer: A borrower cannot collect more than _____ from the trust fund
Q: January 1st, 2011
Answer: In order to receive restitution from the trust fund, the violation must have occurred on or after…
Q: Predatory lending acts are now violations and punishable under state law.
Answer: The adoption of “prohibited conduct or practices” into FL lending law has had what effect?
Q: financial institutions
Answer: Usage of “bank” or any word with the same meaning is prohibited for all entities except
Q: Florida High Cost Fair Lending Act
Answer: Florida’s anti predatory lending law is referred to as
Q: mortgage loan terms and practices such as prepayment penalties, balloon payments, and negative amortization
Answer: FL high cost legislation targets
Q: It can’t last for more than 3 years. The terms of the penalty and it’s benefits must be disclosed 3 days before closing. The borrower must be given a loan option without a penalty.
Answer: the conditions for a pre-payment penalty under FL law
Q: Selling door to door
Answer: What is the unique selling prohibition specific to Florida high cost loan law?
Q: 30 days
Answer: If information relevant to a license application changes, then a licensee is required to report this information to the commission within…
Q: 10% of the company
Answer: Any acts of moral turpitude perpetrated by an owner in a licensee company must be reported if they own more than…
Q: A branch manager licensed as a loan originator
Answer: Any branch office must also have…
Q: A disclosure including the information that the mortgage broker cannot make any mortgage commitments itself.
Answer: At least 3 days prior to closing, a mortgage BROKER must disclose.
Q: returned to the borrower within 60 days after rejection, withdrawal, or closing
Answer: Any fees charged in excess of actual 3rd party costs must be…
Q: 24 months
Answer: Samples of advertising must be retained for a duration of….
Q: a fee of $1,000 a day will be charged to a maximum of $25,000
Answer: If a mortgage broker or lender conducts business at an unlicensed branch office or a person originates loans without a license, then…
Q: Charging a higher interest rate
Answer: In the event of default on a mortgage, FL High Cost Fair Lending Act prohibits what?
Q: 2 payments
Answer: High Cost Fair Lending Act prohibits financing more than…
Q: Fraud, dishonesty, or money laundering
Answer: An individual can be permanently barred from licensure for any acts related to…
Q: $250 + 10% of the loan amount
Answer: Maximum broker fees are…
Q: bar from licensure for a period of 7 years.
Answer: All felonies not related to fraud, dishonesty, or money laundering would result in…
Q: Bar from licensure for a period of 5 years.
Answer: Misdemeanor charges involving fraud or dishonesty would result in…
Q: 3rd degree felony
Answer: Violation of 494 is a…
Q: a 1st degree felony
Answer: If a violation of 494 affects 5 or more victims or results in damages of $50,000 then it is…
Q: 4% or 10% if they sell the loan within 90 days.
Answer: Max lender fees are…
Q: The amount is clearly disclosed, the specific services performed for the application fee must be disclosed, and the fee must be reasonably related to the services to be performed and not based off a percentage of the loan amount.
Answer: Lenders may collect a non-refundable application fee if the following conditions are met:
Q: $250,000
Answer: Net worth requirement after October 1, 2012
Q: $250,000
Answer: Amount required for a servicing endorsement
Q: 120 days after the end of the licensee’s fiscal year
Answer: A licensed lender must receive a financial audit report from an independent CPA as of the end of their fiscal year and report it to the office within…
Q: $250,000
Answer: Claims from the Mortgage Guaranty Trust Fund are limited to ______ per licensee
Q: The office shall prorate payments based on the ratio that a claim bears to the total claims filed.
Answer: If claims of greater than $250,000 are filed against a single licensee, then…
Q: a net tangible benefit
Answer: FHCFLA prevents refinancing within 18 months without…
Q: Initiating loan modification services without executing a written agreement with the borrower; Executing loan modificaiton without consent; Charging a fee before completing all services in the modification agreement.
Answer: FHCFLA prevents what in regards to loan modification?
Q: In the form of an instrument that is payable to the borrower or jointly to the borrower and contractor; or at the election of the borrower by a third party escrow agent in accordance with terms established in a written agreement.
Answer: Lenders shall not make any payments to a contractor from amounts of a high-cost home loan other than:
Q: low doc and no doc loans
Answer: FHCFLA prevents what type of documentation for loans?
Q: one modification, renewal, extension, or deferral per each 12 months on the length of the loan
Answer: Lenders may not charge a borrow for any fees or other charges to modify, renew, extend, or amend a high-cost home loan or to defer any payment due under the terms of a high-cost home loan on a minimum of
Q: Due on demand clause
Answer: High-cost home loans may not include what clause?
Q: The loan officer’s NMLS ID
Answer: The broker agreement signed by the borrower and Principal Loan Originator must include…
Q: Within 2 days of finding out that they will be unable to meet the requirement
Answer: A licensed lender must report failure to meet net worth requirement…
Q: The lender business or branch office shall be deemed to be operated by each equitable owner of a 10% or greater interest.
Answer: If the designation of a principal loan originator or branch manager is inaccurate, then…
Q: knowingly alter, withhold, conceal, or destroy any books, records, computer records, or other information relating to a person’s activities which subject the person to the jurisdiction of this chapter.
Answer: It is unlawful for any licensee subject to investigation or examination under chapter 494 to…
Q: 1) Fee may not be in excess of 5 percent of the past due payment 2) a late payment may only be assessed for a payment 15 days or more past due 3) A late payment fee may not be charged more than once with respect to a single late payment.
Answer: The following regulations apply to late payment fees for high-cost home loans:
Q: A principal place of business
Answer: A mortgage lender that makes mortgage loans must transact business from…
Q: $195 and $20 trust fund fee
Answer: The application fees for loan originator application are:
Q: $225 per branch
Answer: license fee for a branch office is
Q: $225 per branch
Answer: renewal fee for a branch office is
Q: exempt from lender licensing requirements
Answer: A person involved solely in the extension of credit relating to the purchase of a timeshare plan is…
Q: exempt from lender licensing requirements
Answer: A person who makes only nonresidential mortgage loans and sells loans only to institutional investors is
Q: exempt from lender licensing requirements
Answer: A person acting in a fiduciary capacity conferred by authority of a court is
Q: 63,000
Answer: The net worth requirement for lenders not seeking a servicing endorsement
Q: $475 + $100 trust fund fee
Answer: mortgage lender license renewal fees:
Q: $150 + $20 trust fund
Answer: loan originator license renewal fees:
Q: $375 + $100 trust fund
Answer: mortgage broker license renewal
Q: $575
Answer: mortgage lender license application fee
Q: $425
Answer: application fee for a mortgage broker license
Q: 30 years
Answer: a felony of the first degree carries a maximum prison sentence of
Q: $10,000
Answer: fines for crimes and noncriminal violations of 494 shall not exceed ______ if the conviction is a felony of the first or second degree
Q: Are jointly and severally liable to every party to the transaction in an action for damages incurred by the party or parties.
Answer: If a mortgage loan transaction is made in violation of 494, then the person making the transaction and every licensee, director, or officer who participated…
Q: A tax deduction of 25,000 off of their property’s assessed value. (for homes worth at least $75K)
Answer: The homestead exemption entitles most homeowners to
Q: have assessed property value that cannot increase more than 3% per year or the percent change in the Consumer Price Index
Answer: According to the Save our Homes Amendment, homestead exemption recipients
Q: the county Property Appraiser by March 1st of the tax year in which exemption is sought.
Answer: Homestead exemption applications must be filed with
Q: The home is the permanent residence of the applicant or their dependent, and the applicant is not a corporation.
Answer: A homestead exemption can be applied floor if:
Q: A lender may not require a borrower to take insurance through any particular insurance agent or company to protect the mortgaged property.
Answer: Anti-coercion law ensures that
Q: The deed stays with the borrower, and the lender places a lien on the property using the mortgage instrument.
Answer: Florida is a “lien theory” state, meaning…
Q: judicial proceeding
Answer: Foreclosure in a lien theory state is typically conducted by
Q: fraudulent MARS programs
Answer: Florida’s Foreclosure Rescue Fraud Prevention Act is intended to protect consumers from