North Carolina

In North Carolina, the pre-licensing education requirement for mortgage loan originators is:

24 hours

Illegal appraisal practices include all but one of the following:

Asking an appraiser to consider additional appropriate factors

In North Carolina, decisions on licensing applications are made by:

The Commissioner of Banks

A lender intends to make a loan in the amount of $100,000 that is secured by a first mortgage. The loan is not a high-cost mortgage. What is the maximum amount of interest at which the loan may be made?

Any amount contractually agreed upon by the lender and the borrower

A lender can avoid liability for errors in the making of high-cost home loans if it:

Has procedures in place to avoid unintentional errors and corrects them before the borrower or the Commissioner of Banks notifies the lender of the error

The North Carolina Anti-Predatory Lending Law prohibits all but one of the following practices:

Lending to a borrower who has completed homeownership counseling

In order for a North Carolina lender to close a high-cost loan, the lender must:

Receive certification from a counselor approved by the North Carolina Finance Agency that the loan applicant has received counseling

If a prosecutor can show a pattern of practice of mortgage fraud, penalties can include:

Imprisonment

Individual mortgage loan originators are allowed to carry out all but one of the following mortgage lending activities:

Table-fund mortgage loans

With how many licensees or exempt depository institutions is an exclusive mortgage broker permitted to be affiliated?

An exclusive mortgage broker may only be affiliated with one licensee or exempt entity at any given time

Mortgage loan originators may be employed by how many sponsoring mortgage licensees at one time?

One

North Carolina licensees are required to keep examples of all advertising for:

12 months

The late fee for a renewal application that a mortgage loan originator files after the December 31st license expiration date is:

$100

The definition of "immediate family member" includes a(n):

Stepsister

A mortgage loan originator is permitted ______ test attempts before having to wait 180 days before re-testing.

Three

Under North Carolina law, a registered loan originator is:

A loan originator who is registered with the NMLS and who works for an exempt depository institution, such as a federally-regulated bank

A consumer reporting agency must place a security freeze on a consumer's credit report within _____ of receiving an electronic request.

24 hours

Mortgage brokers have duties under North Carolina Law that include all but one of the following:

Duty to find a prime loan for all loan applicants

Which of the following is NOT one of the thresholds used under HOEPA to identify whether a loan is high-cost?

Finance charge

Which of the following is not a qualifying factor for a borrower seeking a reverse mortgage subject to the North Carolina Reverse Mortgage Act?

The loan must be structured as a subordinate home equity line of credit

In relation to escrow accounts, funds received from a borrower may be held:

In an account holding funds from multiple borrowers as long as funds can be separately accounted forThe minimum surety bond requirement for North Carolina-licensed mortgage brokers is:

The minimum surety bond requirement for North Carolina-licensed mortgage brokers is:

$75,000

A loan is a high-cost home loan if it includes a prepayment penalty more than _____ months after closing or a prepayment penalty that exceeds more than _____ of the amount prepaid.

30; 2%

In relation to communicating with an appraiser, it is illegal to ask an appraiser to:

Return a minimum value for a property

What is loan flipping?

A loan is repeatedly refinanced within a short period of time

The Commissioner will deny a mortgage loan originator license application if the applicant:

Is unable to demonstrate financial responsibility

The origination of a high-cost home loan that violates the North Carolina Anti-Predatory Lending Law will result in liability for:

The mortgage broker and the lender that funds the loan

In order to meet the deadline for late license renewal, a licensee must submit a renewal application in North Carolina prior to _____, or else he/she will be required to submit an initial licensing application to the NMLS.

March 1st

Mortgage fraud involving a single mortgage loan is a Class ___ felony, and a proof of a pattern of mortgage fraud is a Class ___ felony.

H; E

The Commissioner of Banks can deny a license application for which of the following reasons?

The license applicant was convicted of a misdemeanor or pled nolo contendere to a misdemeanor involving fraud or moral turpitude within the five-year period prior to the application

In order to obtain authorization to make a reverse mortgage, a lender must complete an application, which must include all of the following, except:

A $500,000 surety bond

A "mortgage lender" under North Carolina law is:

An individual or entity that funds mortgage loans, excluding those individuals or entities that table-fund loans

When a mortgage loan originator is terminated, his/her employer must provide written notice to the Commissioner:

Promptly

Relevant personal financial information of a license applicant includes all but one of the following:

Outstanding judgments related to medical bills

Individual mortgage loan originators are allowed to carry out all but one of the following mortgage lending activities:

Table-fund mortgage loans

To voluntarily surrender his or her mortgage loan originator license, a licensee must have prior written consent from the:

Commissioner

Mortgage servicers must comply with transfer, escrow account, and borrower inquiry response requirements that are imposed by the federal:

Real Estate Settlement Procedures Act

Before extending a high-cost mortgage loan to a consumer, a mortgage loan originator is required to obtain written confirmation that the potential borrower has:

Received homeownership counseling from a HUD-approved counselor

All of the following applicants must have three years of experience in residential mortgage lending, except:

Loan originators

A borrower obtaining a HECM must:

Provide certification of the completion of counseling

In order for an individual or an institution to establish his/her/its exempt status from the requirements of the North Carolina licensing law, it is necessary to file a claim of exemption with the:

Commissioner of Banks

A graduated payment schedule is one in which the payment amount:

Increases from an initial base level to a higher level over time