Get Small Loan Act Original Application - Banking Department

Specifically, the new Article 12-E establishes minimum standards for licensing Mortgage Loan Originators (“MLOs”), which includes requirements for pre-licensure education and testing, bond requirements, and regulatory oversight.

A loan officer is someone who works for a bank or credit union or other financial institution and offers loans to borrowers, while an underwriter is someone who analyzes documents from potential borrowers to determine if they are eligible for a loan.

A loan officer works with potential clients to help them find a loan that works for them, sell them on applying for that loan, then gather all of the information and follow up with the client during the loan approval (underwriting) process.

Pre-qualification is the first step of the origination process when a loan officer meets with a borrower and obtains all basic data and information relating to income and the property in question. All paperwork and documentation are then run through an automatic underwriting program for loan approval.

Loan officers and underwriters do work together but from a distance. A loan officer works directly with the borrowers and provides the necessary information to the underwriter, who then evaluates the information. A loan officer must not attempt to influence the decision of the underwriter.

Which of the following is not a part of the definition of a loan originator? The answer is person or entity that only performs real estate brokerage activities. Real estate brokerage activities are not considered within the definition of a loan originator.

Under the S.A.F.E. Act, a licensed loan originator's responsibilities with regard to recordkeeping include all of the following, except: Not knowingly withholding, removing, or destroying any books or records. Making all of the licensee's records available to borrowers upon demand.

Answer and Explanation: The incorrect option is D. A mortgage loan originator must always have his or her surety bond in an amount that reflects the dollar value of loans originated in the previous year. The mortgage loan originator should be secure by a surety bond.

Making an underwriting decision is not included as an activity that defines offering or negotiating the terms of a loan; therefore, the person performing this task would not need to be licensed as a mortgage loan originator.

When a borrowers credit score, debt-to-income ratio, or loan-to-value ratio do not meet the organization's defined standards, an underwriting exception occurs. Underwriting exceptions are important from a fair lending perspective and are typically evaluated during a compliance review.

A lender override is highly unlikely. However, the lender could seek an alternative product and/or advise the borrower on how to qualify in the future. The lender could also request re-underwriting of the application if new information or an extenuating circumstance is present.

A mortgage loan originator (MLO) is a person or institution that helps a prospective borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process.

Specifically, the new Article 12-E establishes minimum standards for licensing Mortgage Loan Originators (“MLOs”), which includes requirements for pre-licensure education and testing, bond requirements, and regulatory oversight.

A loan officer is someone who works for a bank or credit union or other financial institution and offers loans to borrowers, while an underwriter is someone who analyzes documents from potential borrowers to determine if they are eligible for a loan.

A loan officer works with potential clients to help them find a loan that works for them, sell them on applying for that loan, then gather all of the information and follow up with the client during the loan approval (underwriting) process.

Pre-qualification is the first step of the origination process when a loan officer meets with a borrower and obtains all basic data and information relating to income and the property in question. All paperwork and documentation are then run through an automatic underwriting program for loan approval.

Loan officers and underwriters do work together but from a distance. A loan officer works directly with the borrowers and provides the necessary information to the underwriter, who then evaluates the information. A loan officer must not attempt to influence the decision of the underwriter.

Which of the following is not a part of the definition of a loan originator? The answer is person or entity that only performs real estate brokerage activities. Real estate brokerage activities are not considered within the definition of a loan originator.

Under the S.A.F.E. Act, a licensed loan originator's responsibilities with regard to recordkeeping include all of the following, except: Not knowingly withholding, removing, or destroying any books or records. Making all of the licensee's records available to borrowers upon demand.

Answer and Explanation: The incorrect option is D. A mortgage loan originator must always have his or her surety bond in an amount that reflects the dollar value of loans originated in the previous year. The mortgage loan originator should be secure by a surety bond.

Making an underwriting decision is not included as an activity that defines offering or negotiating the terms of a loan; therefore, the person performing this task would not need to be licensed as a mortgage loan originator.

When a borrowers credit score, debt-to-income ratio, or loan-to-value ratio do not meet the organization's defined standards, an underwriting exception occurs. Underwriting exceptions are important from a fair lending perspective and are typically evaluated during a compliance review.

A lender override is highly unlikely. However, the lender could seek an alternative product and/or advise the borrower on how to qualify in the future. The lender could also request re-underwriting of the application if new information or an extenuating circumstance is present.

A mortgage loan originator (MLO) is a person or institution that helps a prospective borrower get the right mortgage for a real estate transaction. The MLO is the original lender for the mortgage and works with the borrower from application and approval through the closing process.