The SAFE Act's definition of 'mortgage loan originator' specifically excludes which type of financing arrangement?
Correct Answer
C) Temporary financing with terms of 12 months or less
The SAFE Act definition of residential mortgage loan excludes temporary financing, such as construction loans or bridge loans, that have terms of 12 months or less. These short-term financing arrangements are not subject to MLO licensing requirements.
Why This Is the Correct Answer
The SAFE Act definition of residential mortgage loan excludes temporary financing, such as construction loans or bridge loans, that have terms of 12 months or less. These short-term financing arrangements are not subject to MLO licensing requirements.
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A mortgage loan originator company has been in operation for 6 months and has not yet originated any loans. What surety bond amount must they maintain?
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An MLO's license was suspended for 90 days due to failure to maintain surety bond coverage. During the suspension period, the MLO may: