A mortgage loan originator company has assets of $150,000 and liabilities of $130,000. Does this company meet the SAFE Act net worth requirement?
Correct Answer
A) No, because the net worth is only $20,000
Net worth is calculated as assets minus liabilities ($150,000 - $130,000 = $20,000). Since the SAFE Act requires a minimum net worth of $25,000, this company does not meet the requirement.
Why This Is the Correct Answer
Net worth is calculated as assets minus liabilities ($150,000 - $130,000 = $20,000). Since the SAFE Act requires a minimum net worth of $25,000, this company does not meet the requirement.
More UST Questions
If a state regulatory authority finds violations during an examination, what factors typically influence the severity of enforcement action?
Under the SAFE Act, an individual who works for a federally chartered bank and takes mortgage applications must:
An MLO under investigation claims that certain requested documents are protected by attorney-client privilege because they were prepared in consultation with legal counsel. How should the state regulator respond?
Which scenario represents the MOST serious violation of appraisal independence requirements?
An MLO's license is suspended for 6 months, but after 3 months, the MLO demonstrates completion of remedial actions. Can the regulator lift the suspension early?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Previous Question
An MLO holding state licensing in multiple states accepts employment with a federally insured bank. What happens to their existing state licenses?
Next Question
Which of the following topics would NOT typically be covered in the 3-hour federal law and regulations component of pre-licensure education?