Alabama Mortgage Loan Originator

What is the minimum surety bond required for a mortgage loan originator license in Alabama?

• A$10,000
• B$25,000
• C$50,000
• D$100,000

Which agency is responsible for regulating mortgage loan originators in Alabama?

• AAlabama Real Estate Commission
• BAlabama State Banking Department
• CAlabama Securities Commission
• DAlabama Department of Revenue

How many hours of pre-licensing education are required to become a mortgage loan originator in Alabama?

• A10 hours
• B15 hours
• C20 hours
• D25 hours

Alabama is classified as which type of foreclosure state?

• ANon-judicial foreclosure only
• BJudicial foreclosure only
• CBoth judicial and non-judicial foreclosure
• DStrict foreclosure

Under the Alabama Mortgage Brokers Licensing Act, what must an MLO do before collecting any fees from a borrower?

• AComplete the loan closing
• BProvide a written fee agreement disclosing all charges
• CObtain approval from the Alabama State Banking Department
• DSubmit the loan application to NMLS

What is the passing score required on the Alabama state MLO exam component?

• A65%
• B70%
• C75%
• D80%

Under Alabama law, what is the maximum interest rate that can be charged on a residential mortgage loan before it is considered usurious?

• A6% per annum
• B8% per annum
• CThe rate is set by contract with no statutory cap for first mortgages
• D12% per annum

How many hours of continuing education must an Alabama MLO complete annually to maintain their license?

• A4 hours
• B8 hours
• C12 hours
• D16 hours

In Alabama's judicial foreclosure process, what is the typical redemption period after a foreclosure sale?

• A30 days
• B6 months
• C12 months
• DNo redemption period

Which of the following actions by an Alabama MLO would constitute a violation of the state's fair lending laws?

• AOffering different interest rates based on credit score
• BDenying a loan application due to insufficient income
• CSteering a minority borrower to a higher-rate loan when they qualify for a lower rate
• DRequiring private mortgage insurance for loans exceeding 80% LTV

Under Alabama law, what type of trust account must a mortgage company maintain for borrower funds?

• AA personal checking account
• BA federally insured trust or escrow account at an approved depository
• CAny savings account at a credit union
• DA money market account in the company's name

What background check requirement must Alabama MLO applicants satisfy?

• AOnly a state criminal background check
• BFBI criminal background check through fingerprinting and a credit report
• CA background check conducted by a private investigation firm
• DNo background check is required

Which of the following is a prohibited practice under the Alabama Mortgage Brokers Licensing Act?

• ACharging an origination fee
• BCollecting a credit report fee at application
• CMaking false or misleading advertisements about mortgage terms
• DOffering fixed-rate and adjustable-rate mortgage products

An Alabama borrower discovers that their MLO failed to disclose a yield spread premium. Under Alabama law, what remedy is available?

• ANo remedy is available
• BThe borrower may file a complaint with the Alabama State Banking Department and pursue ci…
• CThe borrower must renegotiate directly with the lender
• DThe borrower can only file a federal lawsuit

What is the license renewal deadline for Alabama mortgage loan originators?

• AMarch 31 annually
• BJune 30 annually
• CDecember 31 annually
• DThe anniversary of the original license date

Under Alabama's judicial foreclosure process, what must the lender file to initiate foreclosure?

• AA notice of default with the county recorder
• BA lis pendens and complaint in circuit court
• CA trustee's notice of sale
• DA letter to the borrower's employer

Which of the following activities requires an Alabama mortgage loan originator license?

• AAppraising residential property
• BTaking a residential mortgage loan application and offering loan terms
• CProcessing a loan file under the direction of a licensed MLO
• DPerforming a title search

What enforcement action can the Alabama State Banking Department take against an MLO who violates state mortgage laws?

• AOnly issue a verbal warning
• BImpose fines, suspend or revoke the license, and issue cease and desist orders
• CTransfer the case to the FBI only
• DRequire the MLO to attend a workshop