North Carolina Mortgage Loan Originator

Which state official regulates mortgage loan originators in North Carolina?

• ANC Secretary of State
• BNC Commissioner of Banks
• CNC Real Estate Commission
• DNC Attorney General

How many hours of pre-license education are required for MLO licensure in North Carolina?

• A20 hours only
• B20 hours NMLS-approved plus additional NC-specific hours
• C24 hours total
• D30 hours total

North Carolina primarily uses which type of foreclosure process?

• AJudicial foreclosure only
• BNon-judicial foreclosure through power of sale
• CStrict foreclosure
• DAdministrative foreclosure by the state

What is unique about North Carolina's non-judicial foreclosure process compared to most other states?

• AIt does not require any notice to the borrower
• BThe trustee must obtain a court order before conducting the foreclosure sale
• CIt allows the borrower to skip payments indefinitely
• DThe state government conducts all foreclosure sales

What is the minimum surety bond required for a North Carolina MLO?

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

North Carolina's usury law caps interest rates for consumer loans at:

• A6% per annum
• B8% per annum
• CThere is no single cap; rates are governed by the NC Consumer Finance Act and various exe…
• D15% per annum

What is the annual continuing education requirement for North Carolina MLOs?

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

Under North Carolina's non-judicial foreclosure process, the borrower must receive a notice of hearing at least how many days before the hearing?

• A5 days
• B10 days
• C15 days
• D30 days

What is the passing score for the North Carolina MLO state exam?

• A65%
• B70%
• C75%
• D80%

North Carolina's predatory lending law, the NC Predatory Lending Law (G.S. 24-1.1E), specifically addresses:

• AOnly commercial lending
• BHigh-cost home loans with restrictions on fees, prepayment penalties, and certain loan te…
• COnly loans made by banks
• DOnly government-backed loans

What background check is required for North Carolina MLO applicants?

• AOnly a state criminal check
• BFBI criminal background check and credit report review
• CNo background check
• DBackground check only for non-residents

Under North Carolina law, the borrower's right of redemption after a foreclosure sale is:

• A12 months
• B6 months
• C10 days after the sale for upset bids (increased bids)
• DNo redemption period exists

The NC Commissioner of Banks can take which enforcement actions against MLOs?

• AOnly issue warnings
• BSuspend or revoke licenses, impose fines, issue cease and desist orders, and deny applica…
• COnly refer matters to federal agencies
• DOnly mediate disputes

North Carolina law requires that a foreclosure sale notice be posted and published for at least:

• A10 days
• B20 days before the sale
• C30 days before the sale
• D45 days before the sale

What is the NC SAFE Mortgage Licensing Act?

• AA federal law that applies only to NC
• BNorth Carolina's state implementation of the federal SAFE Act establishing MLO licensing…
• CA voluntary certification program
• DAn insurance regulation

North Carolina license renewals for MLOs are due by:

• AJune 30 annually
• BSeptember 30 annually
• CDecember 31 annually
• DMarch 31 annually

Under North Carolina law, what is required before a lender can initiate the foreclosure process?

• ANothing; foreclosure can begin immediately
• BThe lender must send a notice of default and provide the borrower an opportunity to cure
• CThe lender must obtain borrower consent
• DThe lender must sell the loan to another servicer first

North Carolina's trust account requirements for MLOs mandate that:

• AFunds can be held in the MLO's personal account
• BTrust funds must be held in a federally insured depository institution and not commingled
• CNo trust accounts are needed in NC
• DTrust funds must be invested in stocks