Michigan mortgage licensees are required to maintain records relating to mortgage loans for

The FTC's Telemarketing Sales Rule requires that persons who engage in telemarketing

A. register with the FTC to engage in such practices.

B. establish policies and procedures to ensure compliance with the rule.

C. call only former or current customers for leads for origination.

D. call no one on a do-not-call list.

B. establish policies and procedures to ensure compliance with the rule.

A company engaging in telemarketing may call someone on the Do-Not-Call list if an established business
relationship exists between the company and the consumer. However, if the consumer asks to not be
contacted, the company must put the consumer on the company's own do-not-call list. A telemarketer may
call anyone who is not on a no-call list. The telemarketer must establish policies and procedures and train
employees to ensure compliance with the rule (e.g., check the federal and company no-call lists, enter
persons on the list who specify they do not wish to be called, etc.).

Jean Luc, recently moved to the United States from France, has submitted a completed application package through the NMLS, for a license for his mortgage brokerage business under the name Suisse Banc Mortgages. Will the license application be granted?

A. No. The name of Jean's brokerage house does not meet the requirements of the law.

B. No. An applicant must have been a citizen of the United States for at least five years to be granted
a license.

C. Yes, so long as all of the elements required for an investigation of his application are included.

D. Yes. As long as a person meets the requirements for licensure, the license will be granted.

A. No. The name of Jean's brokerage house does not meet the requirements of the law.

A licensee may not include in its name or assumed name the words "bank," "banker," "banking," "banc,"
"bankcorp" or any other words or phrases that would imply it is a bank, engaged in the business of banking
or affiliated with a bank or savings bank.

The department established in 2013 to promote economic growth while insuring the insurance and financial services industries are safe, sound and entitled to public confidence is the

A. the Department of Insurance and Financial Services.

B. the Department of Licensing and Regulatory Affairs.

C. the Department of Business Regulations.

D. the Department of Financial Regulatory Affairs.

B. the Department of Licensing and Regulatory Affairs.

In 2013, the Michigan Department of Insurance and Financial Services (DIFS) was created by executive
order. The mission of DIFS is to provide a business climate that promotes economic growth while ensuring
that the insurance and financial services industries are safe, sound, and entitled to public confidence.

A mortgage servicer applicant may meet the financial responsibility requirement by providing evidence
of a corporate surety bond in the amount of

A. $125,000.

B. $50,000.

C. $25,000.

D. $100,000.

A. $125,000.

At the time of filing an application, a mortgage servicer applicant must provide proof of financial
responsibility in the amount of $125,000. Such proof may be provided by either a corporate surety bond
executed by an approved corporate surety and made payable to the Director; or an irrevocable letter of
credit issued by a federally insured bank, savings bank, savings and loan association, or credit union.

If a person's actions give it an unfair advantage over another by unfair means, that is known as

A. constructive fraud.

B. actionable fraud.

C. criminal fraud.

D. extrinsic fraud.

A. constructive fraud.

Constructive fraud (or actual fraud) is when a person's actions give the person an unfair advantage over
another by unfair means. This could include such actions as lying or not telling a buyer about defects in a
product.

Sal Mander submitted an application to Jolly Lenders, seeking a mortgage loan in the amount of
$250,000. However, when We Rate 'Em Appraisers was hired by Jolly to do an appraisal on the property
securing the loan, We determined that the home had a value of only $210,000. Jolly offered Sal revised
terms under which he could still obtain a loan to buy the property. Jolly was also required to

A. hold the alternate loan product for Sal for a period of no less than 60 days while he sought a
second appraisal.

B. provide Sal with the license number and experience history for We Rate 'Em Appraisers.

C. negotiate with the appraiser on Sal's behalf for a revised value figure.

D. provide a copy of the appraisal to Sal at no cost.

D. provide a copy of the appraisal to Sal at no cost.

Upon the request of the loan applicant, a credit-granting institution must provide to the applicant at no cost a
copy of an appraisal for which appraisal fees were collected or which was cited as a reason for the rejection
or variance of a loan application. Other documents may also be required to be provided in the case of
rejection or variance.

A loan originator's license was revoked by the Director, and a hearing was held. After the hearing, the order to revoke his license was upheld. The loan originator may

A. request a judicial review of the order.

B. take no further action concerning the order of the Director.

C. pay a fine of not more than $10,000 per violation in lieu of the license revocation.

D. request a review of the order by the Michigan Supreme Court.

A. request a judicial review of the order.

The loan originator may request a judicial review of the order.

A mortgage lender is given notice by the Director on April 1 that it is in violation of recordkeeping
requirements under Michigan's mortgage lending laws. The Director issues a notice of his intention to enter
a disciplinary order and levy a fine for these violations. The lender, disagreeing that it is out of compliance in
its record keeping practices, may request a hearing no later than what date?

A. April 15

B. April 21

C. June 30

D. May 1

B. April 21

Within 20 days after its receipt of the notice of intention to issue a disciplinary order, the licensee or
registrant may request a hearing to contest the order. If a hearing regarding suspension or revocation is not
requested, the Director may enter a final order.

In making a mortgage loan under the Mortgage Lending Practices Act, a credit-granting institution must do all of the following EXCEPT

A. advise each applicant that its minimum loan amount for a home improvement loan is $2,000.

B. if an application is denied, provide the applicant with a written statement, listing the reasons for the
denial.

C. accept a loan application from any person.

D. if the terms are varied, provide the applicant with a written statement listing the reasons for
variation of terms.

A. advise each applicant that its minimum loan amount for a home improvement loan is $2,000.

In making a mortgage loan under the Mortgage Lending Practices Act, a credit-granting institution must
individually analyze each mortgage loan application on the basis of its factually supported lending risks;
accept the submission of a loan application from any person; post in its main office and each branch office a
notice regarding loan applicant rights; and provide an applicant with the reasons for the denial of his loan
application or a change in the terms for which he applied. The minimum amount for a home improvement
loan must be no greater than $1,000.

With regards to information or materials provided to the NMLS

A. once information has been disclosed to the NMLS, it loses its privilege under state and/or federal
law.

B. it may NOT be shared with federal or state regulatory agencies that have mortgage lending
oversight authority.

C. it may be shared with federal or state regulatory agencies that have mortgage lending oversight authority.

D. subsequent use of them is not covered under the Freedom of Information Act.

C. it may be shared with federal or state regulatory agencies that have mortgage lending oversight authority.

Other than as provided under the SAFE Act, with regard to information or material disclosed to the NMLS,
the requirements of the Freedom of Information Act continue to apply. This information may be shared with
any state and federal regulatory official with mortgage industry oversight authority without the loss of
privilege or the confidentiality protections provided by the federal law or the Freedom of Information Act. As
such, it is not subject to disclosure under any law governing the disclosure to the public of information held
by an officer or an agency of a state or the federal government or to subpoena, discovery or admission into
evidence in any private civil or administrative action, unless the privilege is waived by the person to whom it
applies.

A Class I licensee falsified one of the business records it was required to maintain under the Consumer
Financial Services Act. The Director

A. may suspend, revoke or refuse to renew the license of the Class I licensee.

B. will refer the case, if a complaint comes to him concerning the falsified record, to the Attorney
General for resolution.

C. may take no action because a Class I licensee is not subject to the CFSA.

D. is authorized to file criminal charges against the licensee.

A. may suspend, revoke or refuse to renew the license of the Class I licensee.

The Consumer Financial Services Act cites several prohibited activities for which the Director may suspend,
revoke or refuse to renew a Class I or Class II license. Falsifying a business record is one of these
prohibited activities.

Under the Consumer Mortgage Protection Act, a licensee

A. may charge a fee for a service not provided so long as it is disclosed to the applicant.

B. may fill in blanks in a loan document after its execution if the information is subsequently forwarded
to the borrower.

C. may insert information in a loan application that he knows to be false so long as the information
came from the applicant.

D. is prohibited from misrepresenting an amount charged by a third-party provider.

D. is prohibited from misrepresenting an amount charged by a third-party provider.

Under the Consumer Mortgage Protection Act, a licensee is prohibited from, among other things,
misrepresenting the amount charged by or paid to a third party.

Sandy Sholes is an individual who takes residential loan applications and offers and negotiates the
terms of residential mortgage loans for You're the Boss Mortgage Brokers. Sandy is a

A. licensed loan processor.

B. licensed loan officer.

C. registered mortgage loan originator.

D. licensed mortgage broker.

B. licensed loan officer.

A licensed loan officer is a loan officer licensed as a mortgage loan originator under the Mortgage Loan
Originator Licensing Act. A loan officer is an individual who, as an employee or agent of a mortgage broker,
mortgage lender or mortgage servicer, originates mortgage loans. A loan processor is an individual who
performs clerical or support duties as an employee at the direction and subject to the supervision and
instruction of a licensed or exempt person. A registered mortgage loan originator is an individual who is
registered with, and maintains a unique identifier through, the NMLS; meets the definition of mortgage loan
originator; and is an employee of an institution regulated by the Farm Credit Administration; or a depository
institution or a subsidiary it owns and controls which is regulated by a federal banking agency.

Janet is paid a commission for working with several mortgage lenders when acting as an agent to find
suitable loans for her clients. In her position, she submits loan applications to one or more lenders and
places mortgage loans with them. She offers to clients a variety of mortgage loans from these lenders from
which they may choose an appropriate product. Janet is

A. an employee of a mortgage lender.

B. a mortgage broker

C. a loan processor.

D. a loan originator.

B. a mortgage broker

Janet is a mortgage broker. A mortgage broker is a person that serves or offers to serve as an agent for a
person in an attempt to obtain a mortgage loan or that makes or offers to make mortgage loans.

Which of the following must be licensed in Michigan?

A. A registered mortgage loan originator working for Wells Fargo Bank

B. A mortgage loan processor employed by Wells Fargo Bank

C. A mortgage loan originator working for Mortgagors R Us

D. A mortgage loan processor employed by Mortgagors R Us

C. A mortgage loan originator working for Mortgagors R Us

Persons exempt from the state's licensing requirements include a registered mortgage loan originator when
acting on behalf of a depository institution. Loan processors and underwriters who are employees and not
acting as independent contractors are also exempt from the licensing requirements.

An applicant for a mortgage loan originator license must do all of the following EXCEPT

A. submit fingerprints to facilitate a background check.

B. submit a copy of his marital and birth records.

C. pay a nonrefundable license fee and NMLS processing fees.

D. submit a sponsorship request by his employing licensee or registrant.

B. submit a copy of his marital and birth records.

Among the requirements for applying for a loan originator license are submitting fingerprints for a criminal
history check, submitting a sponsorship request by an employing licensee or registrant, and paying a
nonrefundable license fee and NMLS processing fees.

All of the following are required prelicensing education topics EXCEPT

A. federal law and regulations.

B. lending standards for the nontraditional mortgage product marketplace.

C. appraising residential real estate.

D. fair lending issues.

C. appraising residential real estate.

The required 20 hours of NMLS-approved prelicensing education includes three hours of federal
law and regulations; three hours of ethics, including fraud, consumer protection and fair lending issues; and
two hours of lending standards for the nontraditional mortgage product marketplace. Appraising residential
real estate is not a required education topic for mortgage loan originators.

The Department of Insurance and Financial Services is responsible for the regulation of all of the
following industries EXCEPT

A. the mortgage broker industry.

B. the auto repair industry​.

C. the banking industry.

D. the insurance industry.

B. the auto repair industry​.

The Department of Insurance and Financial Services is responsible for the regulation of Michigan's
insurance industry, banks, credit unions, mortgage companies, auto finance companies and securities
companies.

A mortgage loan originator originated $26 million in mortgage loans in Michigan in the last calendar
year. What is the amount of the surety bond he must post in order to maintain his license in Michigan?

A. $10,000

B. $75,000

C. $50,000

D. $25,000

C. $50,000

A mortgage loan originator must provide or be covered by a surety bond in the amount of $50,000, if the
principal amount of mortgage loans closed is more than $24 million.

A person who for, or in expectation of, compensation or gain takes a residential mortgage loan
application or offers or negotiates terms of a residential mortgage loan is

A. an underwriter.

B. a loan originator.

C. a loan processor.

D. an individual servicing a mortgage loan.

B. a loan originator.

A mortgage loan originator is an individual who for, or in the expectation of, compensation or gain takes a
residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.

The minimum score a loan originator applicant can receive to pass the written exam is

A. 70%.

B. 75%.

C. 80%.

D. 65%.

B. 75%.

A mortgage loan originator license applicant must pass, with a score of at least 75%, a written test
developed and administered by the NMLS.

An applicant for a mortgage loan originator license pled guilty to a felony in 2005. When he applies for
the loan originator license in 2011, the Director

A. has the authority to use his discretion in approving the application.

B. will deny the application.

C. may approve the application if the applicant provides sufficient documentation of good character
since the commission of the felony.

D. will approve the applicant if he has not had a license revoked in any jurisdiction.

B. will deny the application.

The Director will not issue a mortgage license to an applicant who has pled guilty to a felony during the
10-year period prior to the date of application.

The legislation that provides for the licensing requirements for a mortgage loan originator in Michigan is
the

A. Mortgage Loan Originators Licensing Act.

B. Mortgage Lending Practices Act.

C. Mortgage Brokers, Lenders and Servicers Licensing Act.

D. Secondary Mortgage Loan Act.

A. Mortgage Loan Originators Licensing Act.

The Mortgage Loan Originators Licensing Act is the legislation that sets forth the licensing requirements for
an individual who wants to act as a mortgage loan originator in Michigan.

Burt Bentley offered a residential mortgage loan to his stepdaughter, Myra. Is Burt required to be
licensed as a mortgage loan originator?

A. No. Anyone who makes fewer than 10 residential mortgage loans a year is not required to be
licensed.

B. No. Burt does not need to be licensed when offering a loan to an immediate family member, and a stepdaughter is included in this category.

C. Yes. Burt would not need to be licensed if Myra were an immediate family member, but a
stepdaughter is not considered immediate family.

D. Yes. Anyone who offers to make a residential mortgage loan must be licensed.

B. No. Burt does not need to be licensed when offering a loan to an immediate family member, and a stepdaughter is included in this category.

Burt is exempt from the licensing requirements because he is an individual offering or negotiating the terms
of a residential mortgage loan with or on behalf of an immediate family member. An immediate family
member may be a spouse, child, sibling, parent, grandparent, grandchild, stepparent, stepchild, stepsibling
or adoptive relationship.

A secondary mortgage loan is a loan secured by a mortgage on an interest in real property that is
subject to a lien of at least one other outstanding mortgage and that has a term of at least

A. 180 days.

B. 90 days.

C. 36 months.

D. 24 months.

B. 90 days.

A secondary mortgage loan has a term of at least 90 days.

In connection with a secondary mortgage loan, a mortgage loan licensee may charge the borrower all of
the following EXCEPT

A. for credit life insurance if the borrower is required to purchase it in order to receive the
loan.

B. an annual fee for the privilege of receiving open-end credit.

C. for credit life insurance he has the option to purchase.

D. a nonrefundable processing fee that is not more than five percent of the gross amount of the loan.

A. for credit life insurance if the borrower is required to purchase it in order to receive the

In making a secondary mortgage loan, a licensee or registrant may charge for credit life insurance, credit
accident and health insurance or any other insurance offered by the licensee or registrant, if the borrower
has the option to purchase it -- not if the borrower is required to purchase it in order to receive the loan.

Rates, points and financial terms that appear in a loan originator's advertising must be

A. offered with the intention of being provided to clients at those terms or better terms.

B. reasonable.

C. competitive.

D. comprehensible to a layperson.

A. offered with the intention of being provided to clients at those terms or better terms.

When advertising mortgage loans and secondary mortgage loans, a licensee or registrant may not advertise
the size of loan, security required for a loan, rate of charge or other condition of lending unless it intends to
make the loans at those terms or better terms.

A violation of the Mortgage Brokers, Lenders and Servicers Licensing Act s a misdemeanor punishable
by a fine of up to

A. $10,000.

B. $25,000.

C. $3,000 per violation.

D. $15,000.

D. $15,000.

A violation of the MBLSLA is punishable by a fine of up to $15,000 and/or imprisonment for not more than a
year.

Big Mortgages was the subject of an investigation by the Director for its failure to provide applicants with
the required disclosures, among other violations, resulting in the preparation of a formal complaint by the
Director. Aside from participating in a hearing on the matter, Big Mortgages' other options include

A. taking three hours of remedial continuing education.

B. providing proof to the Director that it has retroactively provided the required disclosures to
applicants.

C. the opportunity to participate in an informal settlement conference.

D. surrendering its license and, by so doing, erasing its liability for the violations.

C. the opportunity to participate in an informal settlement conference.

The request for settlement conference must be made within 15 days after the receipt of notice, and the
hearing must be postponed until after the conference. For an informal conference to be held, it must be
agreed to by the person against whom the complaint has been filed. If an informal conference is not held or
does not result in settlement, a hearing on the complaint must be held.

Frieda, a mortgage loan originator, has been found by the Director to have committed five separate
violations of the Mortgage Loan Originator Licensing Act. What is the maximum fine the Director may levy
against her?

A. $125,000

B. $50,000

C. $75,000

D. $100,000

A. $125,000

The Director may assess a civil fine against a mortgage loan originator of up to $25,000 for each violation of
the Mortgage Loan Originator Licensing Act. Since Frieda committed five separate violations, she could be
fined as much as $125,000.

A credit-granting institution is found to have violated three prohibited act provisions of the Mortgage
Lending Practices Act. The Director may assess a fine of up to how much against this institution?

A. $6,000, plus the costs of the investigation

B. $2,000, plus the costs of the investigation

C. $10,000, plus the costs of the investigation

D. $30,000, plus the costs of the investigation

D. $30,000, plus the costs of the investigation

A credit-granting institution may be assessed a fine of as much as $2,000 for each violation of the Mortgage
Lending Practices Act and $10,000, plus the costs of the investigation, for each violation involving a
prohibited act. Since this institution was found to have committed three prohibited acts, it may be fined up to
$30,000, plus the costs of the investigation.

Interest charged on a secondary mortgage loan

A. is governed by the Depository Institutions Deregulation and Monetary Control Act of 1980.

B. may not exceed 25% annually.

C. must be computed on the unpaid principal balance of the loan on a daily basis only.

D. may be charged in advance.

B. may not exceed 25% annually.

Interest on a secondary mortgage loan may not exceed the rate permitted by the Credit Reform Act (NOT
the Depository Institutions Deregulation and Monetary Control Act), which is 25 percent annually, nor may it be added or deducted in advance. The interest must be computed on the actual unpaid principal balance of
the loan on a daily OR monthly basis for the time actually outstanding until the loan is paid in full.

A mortgage servicer sends each borrower an annual statement containing his unpaid principal balance,
the interest paid by the borrower and the deposits and disbursements from the escrow account. The
mortgage servicer may charge each borrower how much for the issuance of this annual statement?

A. $ 0

B. $2.50

C. $5.00

D. $7.50

A. $ 0

A borrower may not be charged a fee for the required annual statement, which must show the unpaid
principal balance, the interest paid and the amounts deposited into and disbursed from the escrow account.

Jon Tillman has taken out a $15,000 mortgage loan with a term of four years to fund some work that
must be done around his home. Which of the following statements is true?

A. This is a bridge loan.

B. To be permitted, the terms of this loan must allow it to be fully amortized by the end of its term.

C. A home improvement loan of this amount must be at least five years.

D. A home improvement loan with a term of less than five years may not be refinanced.

B. To be permitted, the terms of this loan must allow it to be fully amortized by the end of its term.

A mortgage loan with a term of less than five years may not have a schedule of regular periodic payments
which will not fully amortize the outstanding principal balance. A bridge loan is a loan with a maturity of less
than one year to be used in the acquisition or construction of a dwelling intended to become the borrower's
principal dwelling.

Big Time Mortgage Loans has had its license revoked by the Director. Which of the following
statements is true?

A. It may continue to service mortgage loans under existing contracts for up to six months after the date of entry of the order.

B. It may continue to service mortgage loans for up to six months after the date of entry of the order,
but may not make a mortgage loan based on a commitment made prior to revocation.

C. It may not continue to service mortgage loans under existing contracts or make mortgage loans for
which commitments had been issued under any circumstances.

D. It may make mortgage loans based on commitments made prior to the revocation but may not
continue to service mortgage loans.

A. It may continue to service mortgage loans under existing contracts for up to six months after the date of entry of the order.

A person whose license or registration has been suspended or revoked may continue to service mortgage
loans under existing contracts for up to six months after the date of entry of the final order. Likewise, a
mortgage lender may make a mortgage loan based on a commitment issued prior to its suspension or
revocation. However, the applicant who received such a commitment may terminate the commitment and
receive a refund of all money prior to closing the loan

A local entity that reviews complaints of rejected loan applicants; attempts to place loans for rejected
applicants; and if unable to successfully place a loan for a rejected applicant, provide the applicant with
written notification of his right to file a complaint with the Director is called

A. a housing and development council.

B. a mortgage lending practices commission.

C. a mortgage review board.

D. the local chapter of the Better Business Bureau.

C. a mortgage review board.

The Director encourages credit-granting institutions to cooperate with local citizens groups and local
government in the formation and operation of voluntary mortgage review boards. A mortgage review board
may review complaints of rejected loan applicants; attempt to place loans for rejected applicants; and if
unable to successfully place a loan for a rejected applicant, provide notification in writing of the applicant's
right to file a complaint with the Director or other governmental agency.

Which Act specifically prohibits any person who offers to make or is making mortgage loans from
charging a fee for a product or service not actually provided to the customer; misrepresenting the amount
charged by or paid to a third party for a product or service; or financing, as part of a mortgage loan,
single-premium coverage for any credit life, credit disability or credit unemployment insurance?

A. The Consumer Mortgage Protection Act

B. The Secondary Mortgage Loan Act

C. The Consumer Financial Services Act

D. The Mortgage Lending Practices Act

A. The Consumer Mortgage Protection Act

The Consumer Mortgage Protection Act prohibits any person offering to make or making mortgage loans
from, among other things, charging a fee for a product or service not actually provided to the customer;
misrepresenting the amount charged by or paid to a third party for a product or service; financing, as part of
a mortgage loan, single-premium coverage for any credit life, credit disability or credit unemployment
insurance.

Fast Eddie's Financing made a secondary mortgage loan of $10,000 to Liv Faste so she could do some
renovation work on her home. Under the terms of the mortgage, Liv would receive $5,000 on May 1 to begin
the work and receive the remainder of the funding in $1,000 chunks at three-week intervals. On May 15,
Fast Eddie's assigned the loan to a new lender. Was this assignment permitted under the Secondary
Mortgage Loan Act?

A. No. It is prohibited to transfer or assign a secondary mortgage loan before at least 75% of the
proceeds have been disbursed to the borrower.

B. Yes, this is a permissible assignment.

C. Yes. There are no limitations on transferring or assigning a secondary mortgage loan.

D. No. Even though the terms of the funding are clear in the loan document, this is prohibited conduct.

B. Yes, this is a permissible assignment.

Under the MBLSLA and the SMLA, it is prohibited for a licensee or registrant to transfer or assign a
mortgage loan before at least 75% of its proceeds have been disbursed to the borrower. However, this
prohibition does not apply to a loan that provides for the proceeds to be disbursed in installments, upon the
request of the borrower or upon the completion of renovations or repairs to the dwelling on the property.

ABC Lending, a licensed mortgage broker, received a check from an applicant for the loan fees that
must be paid to the lender. ABC Lending is required to

A. immediately deposit the check in the lender's bank account.

B. place the check in trust or escrow.

C. immediately deliver the check to the lender.

D. hold on to the check until the loan closes.

B. place the check in trust or escrow.

A licensed or registered mortgage broker, mortgage lender or mortgage servicer is required to place in trust
or escrow any money, funds, checks, drafts or other negotiable instruments that the borrower is obligated to
pay to a third party.

A potential borrower wants to purchase a home selling for $325,000. When the mortgage lender orders
an appraisal in connection with the loan application, the appraiser is told the asking price for the home and
asked to do everything she can to come up with an appraised value to meet this price. She is also told that,
if she is able to do this, the lender may send more appraisal business her way. The mortgage lender is

A. engaging in a normal business practice.

B. defrauding the appraiser.

C. involved in prohibited conduct.

D. effectively communicating the desire of his client, the borrower.

C. involved in prohibited conduct.

It is prohibited for a lender to condition the payment of an appraisal fee on a predetermined value or on the
closing of the mortgage loan for which the appraisal is being done. A person may not directly or indirectly
compensate, coerce or intimidate an appraiser for the purpose of influencing his independent judgment with
respect to the value of the dwelling offered as security for repayment of the mortgage loan.

The interest rate currently applicable to a product offered by loan originator Carey A. Long is 5.10%.
Carey is told that rates are likely to be reduced by 0.25 percentage points in the next two weeks. What rate
may Carey offer in the rate flyer she is currently giving to potential clients?

A. 4.85%

B. 5.25%

C. 5.10%

D. 5.35%

C. 5.10%

A licensee must advertise the currently available rate. It is prohibited conduct for a licensee to directly or
indirectly make a false, misleading or deceptive advertisement regarding mortgage loans, secondary
mortgage loans or the availability of either. If the rate is not currently available, the advertisement is false,
misleading and deceptive.

Fair Isles Lending is in the business of making home equity and home improvement loans and is a
licensed secondary mortgage lender in Michigan. Fair did not pay its annual operating fee by December 31
and received a notice of default regarding this fee from the Director on January 15. The Director may
suspend or refuse to renew Fair's license if the firm does not pay the annual operating fee by

A. January 31.

B. January 25​.

C. January 20.

D. February 28.

B. January 25​.

The Director may suspend, revoke or refuse to issue or renew a secondary mortgage loan license or
registration if he finds that the licensee failed, after 10 days' written notice of default, to pay an annual
operating fee.

A mortgage loan originator must provide updated information to the NMLS whenever any of the
following occurs EXCEPT

A. a change in name.

B. a change in the number of dependents of the originator.

C. a change in residence.

D. a change in employment.

B. a change in the number of dependents of the originator.

A licensed mortgage loan originator must provide updates to the NMLS whenever there is a change in his
employment, residence, personal phone number or e-mail, or name; a deficiency or requirement set by the
regulatory authority of the licensee; or an occurrence that requires an update to disclosure questions. A
licensee need not report to the NMLS a change in the number of his dependents.

Loan originator Halle Lula completed the required continuing education for the year and, in all other
respects, satisfied the requirements for licensure in Michigan. However, because she failed to submit her
renewal application and fee by December 31

A. Halle will be required to take an additional four hours of continuing education in the new license year.

B. Halle's license will expire on December 31.

C. Halle's license will expire and she will not be eligible for licensure for 12 months.

D. Halle may continue to engage in loan origination activities as long as she submits her application by
January 15 of the following year.

B. Halle's license will expire on December 31.

A loan originator's license will be renewed annually by the Director as long as, prior to license expiration, the licensee continues to meet the minimum standards for license issuance; satisfies the annual continuing education requirements; and pays the required renewal fee. If the licensee fails to meet these renewal conditions, his license will expire.

Fair Isles Lending makes mortgage loans and has 10 offices in Michigan. A mortgage loan application is
submitted in one of its offices on March 10, 2013. According to the Mortgage Lending Practices Act, until
when must Fair Isles Lending retain the loan application and the documents and records related to it?

A. Until December 31, 2014

B. Until April 10, 2015

C. Until June 30, 2014

D. Until March 10, 2015

B. Until April 10, 2015

A credit-granting institution must retain records for a period of 25 months after a loan application has been
submitted or until the loan is repaid, whichever is earlier.

How long are mortgage companies required to maintain records?

How long must licensees maintain copies of documents related to residential mortgage loans under the Residential mortgage Licensing Act Nebraska?

How long must all records be preserved after the final entry on a loan?

How long must a mortgage company retain complete records of each loan application after it has been submitted or the loan has been repaid?