Vermont Mortgage Loan Originator

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

• AVermont Department of Banking
• BVermont Department of Financial Regulation
• CVermont Real Estate Commission
• DVermont Secretary of State's Office

How many hours of NMLS-approved pre-license education are required for a Vermont MLO license?

• A15 hours
• B20 hours
• C24 hours
• D30 hours

What type of foreclosure process does Vermont primarily use?

• ANon-judicial foreclosure through power of sale
• BStrict judicial foreclosure requiring court proceedings
• CAdministrative foreclosure through a state agency
• DHybrid foreclosure using both court and trustee

What is the minimum surety bond required for a Vermont MLO license?

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

What is the primary Vermont statute governing mortgage lending?

• AVermont Consumer Credit Code
• BVermont Licensed Lender Act (Title 8, Chapter 73)
• CVermont Fair Housing Act
• DVermont Uniform Commercial Code

How many hours of continuing education must a Vermont MLO complete annually?

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

What enforcement authority does the Vermont Department of Financial Regulation have over MLOs?

• AThe DFR can only issue warnings
• BThe DFR can revoke, suspend, or deny licenses, impose fines, and issue cease and desist o…
• CThe DFR can only refer matters to federal agencies
• DThe DFR has no enforcement authority over individual MLOs

Under Vermont's judicial foreclosure process, what must the lender do to initiate foreclosure?

• ASimply send a notice to the borrower
• BFile a complaint in the Vermont Superior Court and serve the borrower with a summons
• CPublish a foreclosure notice in a local newspaper
• DContact the town clerk to schedule a foreclosure sale

What disclosure requirements does Vermont impose on MLOs at the time of loan application?

• ANo disclosures are required at application
• BMLOs must disclose all fees, compensation, and material terms of the loan as required by…
• COnly the interest rate must be disclosed
• DDisclosures are only required at closing

Which of the following is a prohibited practice for a Vermont MLO?

• AOffering both fixed and adjustable rate products
• BSteering borrowers to less favorable loans to increase the MLO's compensation
• CProviding loan estimates to multiple borrowers
• DWorking with borrowers who have low credit scores

What is Vermont's redemption period after a judicial foreclosure sale?

• ANo redemption period exists
• B6 months from the date of the foreclosure decree
• C12 months from the date of the foreclosure sale
• D30 days from the foreclosure sale

What criminal background check does Vermont require for MLO applicants?

• AOnly a Vermont state criminal records check
• BFBI criminal background check through fingerprinting via NMLS
• CA self-reported criminal history only
• DNo background check is required

How does Vermont regulate prepayment penalties on residential mortgage loans?

• AVermont allows unlimited prepayment penalties
• BVermont restricts prepayment penalties consistent with federal qualified mortgage rules a…
• CPrepayment penalties are completely banned in Vermont
• DPrepayment penalties are only regulated for loans over $400,000

What are the trust account requirements for Vermont mortgage brokers?

• ATrust accounts are not required in Vermont
• BMortgage brokers must maintain separate trust accounts for borrower funds, distinct from…
• CTrust accounts can be commingled with business funds
• DOnly banks must maintain trust accounts

What is the Vermont DFR's authority to examine licensed MLOs and their employers?

• AThe DFR has no examination authority
• BThe DFR can only examine after receiving a complaint
• CThe DFR may conduct examinations at any time to verify compliance with Vermont mortgage l…
• DExaminations can only occur once every 3 years

Under Vermont law, what borrower rights exist during the judicial foreclosure process?

• ABorrowers have no rights during foreclosure
• BBorrowers have the right to appear in court, present defenses, and receive proper notice…
• CBorrowers can only observe but not participate in proceedings
• DBorrower rights only exist after the foreclosure sale

What fair lending protections does Vermont provide beyond federal requirements?

• AVermont offers no additional fair lending protections
• BThe Vermont Fair Housing and Public Accommodations Act adds protected classes including s…
• CVermont only follows federal fair lending laws
• DFair lending only applies to government-backed loans in Vermont

What is the Vermont MLO license renewal cycle?

• AEvery 6 months
• BAnnually through NMLS
• CEvery 2 years
• DEvery 3 years