Questions and Answers
What is the Florida Loan Originator and Mortgage Broker Act?
Title XXXIII, Chapter 494
What does Chapter 494 cover?
Florida's licensing law for mortgage lending institutions that are not traditional depository and lending institutions.
What does Part 1 of Chapter 494 cover?
General provisions as they apply to mortgage professionals.
What is contained in Part 2 of Chapter 494?
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What does Part 3 of Chapter 494 relate to?
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What law did Florida revise Chapter 494 to comply with?
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Where is The Administrative Procedures Act found?
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What is the purpose of the Florida State Anti-Coercion Act?
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What must a lender notify the borrower of before any formal application or payment of fees, according to the Anti-Coercion law?
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What do lenders have the right to set under Chapter 690-124 Anti-Coercion rules?
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To comply with Chapter 690-124 rules, what must the Anti-Coercion disclosure be?
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What types of insurance do the provisions of the 690-124 Rule related to Anti-Coercion apply to?
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Who is considered a borrower?
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What is a branch manager?
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What defines a branch office in mortgage brokerage?
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What is the Commission in the context of Florida mortgage law?
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What is a control person?
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What does the term control person include?
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What is a financial audit report?
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What must the financial audit report include?
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What is an institutional investor?
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What defines a licensed mortgage loan originator?
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What are licensed loan originators forbidden from?
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What can a mortgage loan originator charge when referring a borrower to a third party for settlement services?
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What is a loan commitment?
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What does loan modification mean?
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When can a borrower cancel a loan modification without penalty?
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What constitutes a loan origination fee?
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What is a lock-in agreement?
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What does 'making a mortgage loan' involve?
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What is considered a material change in mortgage terms?
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What is a mortgage loan application?
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What does a mortgage lender do?
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What is known as service endorsement?
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What is a mortgage broker?
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When must a mortgage broker disclose total compensation to the borrower?
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What happens if a mortgage broker closes a loan while their license is suspended?
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What is net worth?
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Who is the principal loan originator?
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What does the principal place of business refer to?
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What do points and fees include?
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What can a mortgage loan originator lawfully do if a borrower cannot pay closing fees?
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What defines a registered loan originator?
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What is the NMLS?
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Who is considered a relative in mortgage documentation?
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What is a registered loan originator exempt from?
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What is a servicing endorsement?
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What does servicing a mortgage loan entail?
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What is an ultimate equitable owner?
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What is a mortgage loan?
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What does the term 'affiliate' refer to?
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What does the term ultimate equitable owner mean?
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What was the 2002 Florida Fair Lending Act passed in response to?
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What does the Fair Lending Act prohibit?
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What does the Homestead Exemption (Chapter 196) outline?
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Who is intended to benefit from the Florida Homestead Exemption?
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What type of property is NOT eligible for the Florida Homestead Exemption?
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What does the Save Our Homes Amendment 10 limit?
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How is the Mortgage Guaranty Trust Fund financed?
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Study Notes
Florida Loan Originator and Mortgage Broker Act
- Encompasses Title XXXIII, Chapter 494, governing non-traditional mortgage lending institutions.
- Chapter 494 includes licensing laws for mortgage brokers and lenders not categorized as banks, savings loans, or credit unions.
Chapters and Provisions
- Part 1 outlines general provisions for mortgage professionals.
- Part 2 details laws specifically for mortgage brokers and loan originators.
- Part 3 focuses on mortgage lenders and the regulation of individuals working as loan originators.
Compliance and Regulatory Standards
- Florida revised Chapter 494 to adhere to the S.A.F.E. Act standards.
- The Administrative Procedures Act is found in Chapter 120 of the Florida Statutes.
Anti-Coercion Protections
- The Florida State Anti-Coercion Act protects mortgage applicants from pressure regarding mortgage protection insurance purchases.
- Lenders must inform borrowers of their insurance purchase rights before formal applications or fee payments.
- Anti-Coercion rules require written notice signed by the borrower, retained by the lender.
Definitions and Roles
- Borrower includes anyone responsible for repaying a mortgage loan, such as co-borrowers or guarantors.
- Branch manager is a licensed loan originator responsible for branch office operations.
- Control person refers to individuals or entities directing management or policies within a company.
Financial Reports and Audits
- Financial audit reports are composed per accepted standards by certified public accountants, including financial statements and their compliance with accounting principles.
Loan Originators
- Licensed mortgage loan originators solicit, process, and negotiate mortgage loans for borrowers, and are prohibited from working for multiple brokers simultaneously.
- Loan originators must disclose compensation details to the borrower within three days of receiving a loan application.
Types of Mortgage Loans and Applications
- Mortgage loans include residential loans for personal use and loans for commercial real estate under certain conditions.
- A loan modification alters an existing loan but does not classify as refinancing. Borrowers can cancel a loan modification within three business days of signing.
Closing and Fees
- The loan origination fee encapsulates all compensation received by a mortgage broker for processing applications.
- Points and fees include various charges like broker and closing fees.
Licensing and Affiliations
- Registered loan originators working with federally regulated institutions must maintain a unique identifier through the NMLS.
- Affiliates of license applicants face scrutiny during the license review process.
Fair Lending Practices
- The 2002 Florida Fair Lending Act addresses predatory lending by prohibiting certain lending terms and practices.
- The Florida Homestead Exemption offers tax relief to qualifying property owners as of January 1 each year, excluding rental properties.
Tax and Property Value Protections
- The Save Our Homes Amendment limits property value increases for homeowners with the Homestead Exemption to 3% of the Consumer Price Index change.
- The Mortgage Guaranty Trust Fund is financed by license application fees.
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Description
This quiz covers key terms and definitions from the Florida Loan Originator and Mortgage Broker Act, specifically focusing on Chapter 494 and its provisions. Test your knowledge of Florida's licensing laws for mortgage lending institutions through engaging flashcards.