A California real estate broker arranges a loan between a private investor and a borrower, secured by the borrower's primary residence. The interest rate is 14%. Is this loan usurious?
Correct Answer
C) No, because the real estate broker exemption applies to broker-arranged loans secured by real property
The real estate broker exemption under Article XV applies when a licensed real estate broker arranges a loan secured by real property. There is no distinction between residential and commercial property for this exemption, so the 14% rate is permissible.
Why This Is the Correct Answer
The real estate broker exemption under Article XV applies when a licensed real estate broker arranges a loan secured by real property. There is no distinction between residential and commercial property for this exemption, so the 14% rate is permissible.
More UST Questions
In a Missouri mortgage file, the loan file reviewer is asked to document licensing and NMLS authority before continuing. Which rule controls?
A renewal specialist is updating Missouri procedures for supervisory file review and flags licensing and NMLS authority. Which answer is accurate?
For a Missouri consumer complaint response, a branch supervisor is training staff on licensing and NMLS authority. Which answer should be used?
For a Missouri branch onboarding review, a branch supervisor is training staff on licensing and NMLS authority. Which answer should be used?
For a Missouri MLO sponsorship update, a compliance manager is training staff on sponsorship and employment status. Which answer should be used?
A mortgage company asks a policy analyst to validate a Missouri branch onboarding review involving licensing and NMLS authority. Which statement is reliable?
For a Missouri disciplinary-risk review, a branch supervisor is training staff on licensing and NMLS authority. Which answer should be used?
An operations lead compares company policy with Missouri requirements during an advertising approval. Which statement fits licensing and NMLS authority?
A mortgage company asks an operations lead to validate a Missouri MLO sponsorship update involving continuing education and renewal. Which statement is reliable?
A licensing checklist in Missouri includes a question about scope, definitions, and exemptions. Which entry should the branch supervisor keep?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Related Study Resources
Previous Question
A practice question asks about own-behalf money and advertising prohibitions. Which answer best matches the official Arizona rule?
Next Question
An Idaho file is paused during an NMLS filing review because of licensing and NMLS authority. Which statement clears the compliance question?