Under the federal 'Secure and Fair Enforcement for Mortgage Licensing Act' (SAFE Act), a Colorado mortgage loan originator must:
Why B. Be licensed in every state where they originate loans, complete 20 hours of pre-license education, pass a national test, and register in the NMLS (Nationwide Multistate Licensing System) Is Correct
Answer B: B. Be licensed in every state where they originate loans, complete 20 hours of pre-license education, pass a national test, and register in the NMLS (Nationwide Multistate Licensing System)
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
State-Specific Concepts
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