EstatePass
USThard11% of exam

Under the NJ RMLA, what is the maximum allowed commitment fee that a mortgage broker may charge a borrower at the time of loan application?

Correct Answer

D) The fee cannot exceed the actual cost of services provided

The RMLA requires that any fees charged by a broker be reasonable and not exceed the actual cost of services provided.

Answer Options
A
There is no cap on commitment fees
B
The fee cannot exceed 1% of the loan amount
C
The fee cannot exceed $500
D
The fee cannot exceed the actual cost of services provided

Why This Is the Correct Answer

The RMLA requires that any fees charged by a broker be reasonable and not exceed the actual cost of services provided.

Was this explanation helpful?

More UST Questions

What is the minimum net worth requirement for a mortgage lender licensee in Pennsylvania?

A Georgia MLO company fails to pay its annual license renewal fee by the December 31st deadline. The company's license status would be:

A loan originator completes 15 hours of pre-licensure education from an approved provider, then realizes 3 hours were duplicated from a previous course taken 6 months ago. How many additional hours must be completed to meet the requirement?

A mortgage loan originator in New Jersey must provide which specific state-required disclosure to borrowers in addition to federal requirements?

Under Texas law, which of the following is TRUE regarding deficiency judgments after a residential mortgage foreclosure?

An MLO licensed in California fails to complete their required continuing education by December 31. What is the consequence?

An MLO transitions from a federal savings bank to a state-licensed mortgage broker on January 15th and submits a complete state license application on February 10th. If no decision is made by the state, when does temporary authority expire?

A mortgage banker operating in New Jersey originates $75 million in residential mortgage loans annually. What is the minimum net worth requirement this entity must maintain?

Under Florida and federal law, a borrower has the right to rescind (cancel) a refinance transaction on their primary residence within:

Florida requires certain professionals to report suspected mortgage fraud. Which of the following is required to report suspected fraud to the appropriate authorities?

People Also Study

Related Study Resources

Practice More MLO Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your SAFE MLO exam.

Start Practicing