South Dakota Mortgage Loan Originator

How many hours of NMLS-approved pre-license education are required for an MLO license in South Dakota?

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

Which agency is the primary regulator of mortgage loan originators in South Dakota?

• ASD Real Estate Commission
• BSD Division of Banking
• CSD Department of Revenue
• DSD Department of Commerce

What type of foreclosure is primarily used in South Dakota?

• AJudicial foreclosure only
• BNon-judicial foreclosure
• CStrict foreclosure
• DAdministrative foreclosure

What is the passing score required on the South Dakota MLO state exam?

• A65%
• B70%
• C75%
• D80%

South Dakota is notable in the banking industry for its position on usury laws. What is distinctive about South Dakota's approach?

• ASouth Dakota has the strictest usury laws in the nation
• BSouth Dakota has no general usury cap, making it a banking-friendly state
• CSouth Dakota caps interest rates at 5%
• DSouth Dakota prohibits all interest charges

What is the minimum surety bond amount typically required for MLO licensing in South Dakota?

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

What is the primary state law governing mortgage lending in South Dakota?

• ASD Real Property Act
• BSD Mortgage Lending Practices Act
• CSD Banking Code
• DSD Consumer Lending Statute

How many continuing education hours does South Dakota require annually for MLO license renewal?

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

In a non-judicial foreclosure in South Dakota, what is the required notice period before the sale?

• ANo notice required
• BAt least 21 days published notice before the sale
• CAt least 90 days before the sale
• DAt least 1 year before the sale

What enforcement actions can the SD Division of Banking take against an MLO who violates state laws?

• AOnly issue written warnings
• BIssue cease and desist orders, impose fines, and revoke licenses
• COnly refer cases to the Attorney General
• DNo enforcement authority exists

Under South Dakota law, what is required for a valid power-of-sale clause in a mortgage or deed of trust?

• AIt must be written in red ink
• BThe clause must be clearly stated in the security instrument and authorize sale without c…
• CIt only needs verbal agreement
• DA power-of-sale clause is not recognized in South Dakota

What disclosure requirements apply to MLOs in South Dakota at the time of loan application?

• ANo disclosures are required
• BThe Loan Estimate must be provided within 3 business days of application
• COnly verbal disclosure of the interest rate
• DDisclosures are only required at closing

In South Dakota, is there a statutory right of redemption after a non-judicial foreclosure sale?

• AYes, the borrower has a 180-day redemption period
• BYes, the borrower has a redemption period that may vary based on circumstances
• CNo redemption period exists after non-judicial foreclosure
• DThe redemption period is 5 years

What must an MLO applicant in South Dakota provide for the criminal background check?

• AA self-certification letter
• BFingerprints for an FBI background check
• COnly a state police clearance
• DNo background check is needed

Under South Dakota law, what is the borrower's right to cure a default before foreclosure?

• ANo right to cure exists
• BThe borrower has the right to cure the default by paying past-due amounts before the fore…
• CThe borrower can only cure by refinancing
• DThe right to cure requires court approval

What are the trust account requirements for handling borrower funds in South Dakota?

• ANo trust account requirements exist
• BBorrower funds must be deposited in a federally insured trust or escrow account
• CMLOs can commingle borrower funds with personal funds
• DOnly cash transactions require trust accounts

Which of the following is a prohibited practice for an MLO in South Dakota?

• AOffering multiple loan options
• BSteering a borrower to a more expensive loan for the MLO's financial benefit
• CProviding a Loan Estimate
• DCollecting a credit report fee

What is the SD Division of Banking's authority to examine MLO licensees?

• ANo examination authority
• BAuthority to examine books, records, and business practices of licensees
• CCan only examine upon borrower complaint
• DExamination authority is limited to once every 5 years