Michigan Mortgage Loan Originator

What is the primary regulatory agency overseeing mortgage loan originators in Michigan?

• AMichigan Real Estate Commission
• BMichigan Department of Insurance and Financial Services (DIFS)
• CMichigan Department of Licensing and Regulatory Affairs
• DMichigan State Banking Authority

How many hours of NMLS-approved pre-license education are required to become a licensed MLO in Michigan?

• A16 hours
• B20 hours
• C24 hours
• D30 hours

What type of foreclosure does Michigan primarily use?

• AJudicial foreclosure only
• BNon-judicial foreclosure by advertisement
• CBoth equally
• DStrict foreclosure

What is the statutory redemption period after a foreclosure sale in Michigan?

• A30 days
• B90 days
• C6 months
• D12 months

What notice must be provided before a foreclosure by advertisement sale in Michigan?

• A15-day notice
• B30-day notice
• CPublication once a week for 4 consecutive weeks in a newspaper of general circulation
• DNo notice is required

What is the continuing education requirement for Michigan MLO license renewal?

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

Under the Michigan Mortgage Brokers, Lenders, and Servicers Licensing Act, which practice is prohibited?

• ACharging a loan origination fee
• BRequiring a credit report
• CSteering a borrower to a loan with less favorable terms when they qualify for better terms
• DRequiring an appraisal

What authority does DIFS have regarding MLO enforcement in Michigan?

• ACan only issue warnings
• BCan suspend or revoke licenses, impose fines, conduct examinations, and issue cease and d…
• CCan only refer cases to the Attorney General
• DHas no enforcement authority

What background check requirements must MLO applicants meet in Michigan?

• AOnly a credit check
• BFingerprinting, FBI criminal background check, and credit report through NMLS
• COnly state criminal check
• DNo background check required

Can a lender pursue a deficiency judgment after a foreclosure by advertisement in Michigan?

• AYes, deficiency judgments are always available
• BNo, Michigan prohibits deficiency judgments after foreclosure by advertisement
• COnly for commercial properties
• DOnly with borrower consent

Under Michigan law, what trust account requirements apply to mortgage licensees?

• ATrust accounts are not required
• BLicensees must maintain trust accounts in FDIC-insured institutions for borrower funds, s…
• CTrust accounts can be combined with operating funds
• DOnly banks need trust accounts

What is the usury law impact on Michigan first-lien mortgage rates?

• AMichigan caps rates at 7%
• BMichigan caps rates at 11%
• CFederal preemption removes the state usury cap for first-lien residential mortgages
• DMichigan has no usury laws at all

What disclosures are Michigan-specifically required for mortgage borrowers?

• ANo state-specific disclosures
• BFederal TRID disclosures plus Michigan-specific disclosures about borrower rights and for…
• COnly verbal disclosures
• DOnly the HUD-1 settlement statement

Michigan's fair lending laws prohibit discrimination based on which classes?

• AOnly federal protected classes
• BRace, color, religion, national origin, sex, age, marital status, familial status, disabi…
• COnly race and gender
• DOnly income level

What restrictions does Michigan place on prepayment penalties for residential mortgage loans?

• APrepayment penalties are always allowed
• BMichigan generally restricts or prohibits prepayment penalties on residential mortgage lo…
• CPenalties are capped at 10% of loan balance
• DPenalties only apply after 5 years