Utah Personal Lending and Mortgages (PLM) Certification Practice Test

These questions are part of the practice quiz. Start practicing

• What is the latest deadline by which a buyer may cancel based on their inability to obtain financing and still receive a refund?
• If a loan is declined on July 15, how long must the mortgage loan originator retain the record of the loan file?
• Assume a mortgage loan originator violates Utah statute. Which of the following best describes the liability of the PLM responsible for supervising the mortgage loan originator?
• In order to qualify for a PLM license, an applicant must complete how many hours of approved education?
• Which statement is true regarding the distribution of fliers by a mortgage loan originator?
• What may be a consequence for a mortgage loan originator who does not pay an appraiser for services rendered?
• Assume a company is applying for a mortgage entity license in Utah. If the vice president of the company had their individual mortgage license revoked in another state 2 years prior to the license application, which of the following is true?
• How many days after a disciplinary order is rendered by the Division of Real Estate does it become effective?
• What is the annual continuing education requirement for a mortgage loan originator in Utah?
• What describes the liability of a PLM supervising a mortgage loan originator who violates Utah statute?
• Which of the following would not automatically prevent an application from obtaining a loan originator's license in Utah?
• What is required to convert a mobile home into real property?
• What does the term 'settlement' refer to in the Utah approved Real Estate Purchase Contract?
• When must a mortgage loan originator's license be renewed?
• In Utah, what is the purpose of the recovery fund administered by the Division of Real Estate?
• What is a primary responsibility of the Utah Residential Mortgage Regulatory Commission?
• What may an applicant's history of drug abuse be used as evidence of?
• What should a loan officer do if they suspect undisclosed debt from a borrower?
• What is the required bond amount for a business entity with an annual origination volume over $30 million?
• In Utah, what is a responsibility of a loan originator when dealing with appraisal reports?
• Which of the following loans would not be regulated by either the Utah Division of Real Estate or the Utah Department of Finance?
• A PLM is responsible for the supervision of?
• Which is not a power of the Department of Financial Institutions?
• What skill is associated with demonstrating competence as a mortgage loan originator in Utah?
• When can a licensed mortgage loan originator engage in advertising?
• Which type of mortgage would typically not be regulated by the Department of Financial Institutions?
• Which of the following is NOT a responsibility of the Utah Residential Mortgage Regulatory Commission?
• Which entity is exempt from the Financial Institution Mortgage Financing Regulation Act?
• What must loan originators disclose to borrowers according to Utah law?
• In what scenario does the loan originator have no liability?
• At what stage can a licensee begin charging a borrower for modification services?
• What does a contingency in a purchase contract allow?
• What type of evidence can a lawsuit for non-payment of commissions provide against an applicant for a loan originator's license?
• Who is responsible for maintaining records if a licensed mortgage entity ceases operations?
• If a loan originator commits fraud on a mortgage transaction worth $10,000, what is the maximum fine the Division of Real Estate could impose?
• What action should be taken if the credit report has inaccuracies during a loan application process?
• What role does an associate lending manager play in relation to a PLM?
• What is the purpose of the HUD-1 document during a closing?
• What happens to the earnest money deposit if a buyer cancels the contract after the Loan Qualification Deadline?
• What is the maximum fee a borrower may be charged for compliance with a request for a copy of their appraisal in Utah?
• What might past lawsuits against a loan originator, regarding non-payment of commissions, be used to assess?
• If the Department of Finance issues an order to a lender to stop making loans without a hearing, what is required next?
• What is a requirement for a licensee to charge a borrower for modification services?
• When is an entity's license renewed in Utah?
• What is the annual deadline for entities that have filed a notification under the Utah Consumer Credit Code to re-file?
• How long must records be retained if the loan was approved?
• What kind of documents are typically required for homeowners to convert a mobile home into real property?
• A licensed mortgage loan originator sends an advertisement which is intended to convince the borrower that the letter is from a government agency. What is true regarding this type of advertising?
• In the advertising process, what must a loan originator always include to comply with regulations?
• What is the maximum fee that may be assessed to an individual licensee for the recovery fund in Utah?
• What is the role of the Division of Real Estate in Utah regarding mortgage loans?
• How many days before doing business in Utah must entities covered by the Utah Consumer Credit Code file a notification?
• According to Utah law, what is the maximum fee that may be charged on a reverse mortgage?
• Under what condition can a loan originator solicit?
• According to the Utah approved Real Estate Purchase Contract, what condition must the property be in at the time of buyer possession?
• What is the deadline known as for a buyer to cancel a contract based on their inability to obtain financing while still getting a refund of the earnest money?
• A quality control plan in Utah is considered evidence of what?
• What is the cleanliness standard required of a property at the time of possession by the buyer?
• According to the SAFE Act, how is a non-traditional mortgage defined?
• What type of insurance is not regulated for coverage amount according to Utah law?
• What does closing refer to in the context of the Real Estate Purchase Contract?
• When an individual wishes to change their affiliation from one entity to another, when must they notify the Division of Real Estate?
• Which of the following is not a requirement for a licensee in Utah regarding employee reporting?
• What entity has the power to adopt rules necessary to enforce the Utah Residential Mortgage Practices and Licensing Act?
• What is the minimum time frame for which a licensed mortgage entity must retain records?
• Which of the following best describes the function of earnest money in a real estate transaction?
• What is child support arrearage evidence indicative of for a mortgage loan originator applicant?
• What must a licensee do if they change their mailing address?
• How are fees defined in relation to cancellation according to Utah rules?
• In Utah, what is the maximum number of residential units allowed in a single property?
• If a loan originator fails the SAFE exam on their fourth attempt, when can they retake the exam?
• When a loan application is denied, what is true regarding the return of application documents?
• If a licensee believes there is incorrect information in the NMLS database, how may they challenge this information?
• In the context of real estate transactions, why is the 'Financing and Appraisal Deadline' significant?
• Which conviction would NOT disqualify an applicant from licensure with the Division of Real Estate?
• According to Division of Real Estate rule, how must records be disposed of?
• What is the bond requirement for a business entity with an annual origination volume of $30 million?
• The Division of Real Estate can discipline all of the following individuals except for which?
• What is the limit for late fees under the Utah Consumer Credit Code?
• An individual found guilty for the first time of violating Utah mortgage law is considered to have committed what type of offense?
• According to the Utah approved Real Estate Purchase Contract, the earnest money deposit may serve as what?
• How many members of the Utah Residential Mortgage Regulatory Commission must hold mortgage licenses?
• What are the limitations on payments from the Division of Real Estate's Recovery Fund?
• If a licensed mortgage loan originator is convicted of a criminal offense, when must they notify the Division of Real Estate?
• What time frame is typically allowed for applicants to report changes regarding their licensure?
• What can a loan originator do to avoid an investigation by the Division of Real Estate?
• What might the Division of Real Estate consider if an applicant has a legal history of unfulfilled financial obligations?
• Which action can lead to the denial of a mortgage loan originator's license?
• How long does a licensee have to respond to a request for information from the Division according to Division of Real Estate rules?
• Which office is most likely involved in the regulation of the mortgage industry in Utah?
• What is the maximum time frame for a licensed mortgage loan originator to renew their license each year?
• Who holds responsibility for record keeping according to Division of Real Estate rule?
• If the principal lending manager is not present, who is responsible for the disposition of records?
• If a mortgage loan originator is unable to close a loan application and refers it to another mortgage company, what compensation is the first loan originator entitled to?
• When a loan originator takes a loan application online, when must they obtain signatures from the borrower?
• In the context of the Utah approved Real Estate Purchase Contract, what does 'closing' specifically refer to?
• How soon must a mortgage loan originator notify the Division of Real Estate about a change in criminal status?
• What is true about restrictions on hazard insurance coverage under Utah law?
• What is required to properly dispose of documents under Utah law?
• Which entity regulates mortgage loan originators who originate a line of credit secured by a residential Utah property?
• What constitutes "specific performance" in real estate transactions?
• According to Division of Real Estate rule, what must an advertisement include?
• What does the acronym "PLM" stand for in Utah mortgage license law?
• Charging for services that were not performed is considered what type of conduct?
• What is a common theme in the laws governing loan originators in Utah?
• What is possession of the property based on in the Utah approved Real Estate Purchase Contract?
• Which information is NOT required in a mortgage advertisement in Utah?
• Under what condition can a mortgage loan originator prepare a real estate purchase contract?
• What does a buyer receive if they accept liquidated damages after a seller defaults according to the Utah approved Real Estate Purchase Contract?
• Who is primarily responsible for enforcing fair lending laws in the state of Utah?
• What main function does earnest money play in a real estate contract?
• If an applicant for a loan originator's license entered a no contest plea for a felony drug charge 8 years ago, what is the impact on their licensure?
• What is an appropriate request for an appraiser according to USPAP?
• An applicant for a loan originator license is denied licensure based on misconduct. How long will they be ineligible for licensure?
• Who regulates the mortgage industry in Utah?
• What evidence may be considered when an applicant has previously owned a mortgage company and faced legal issues with former employees?
• What type of conduct does the Division of Real Estate view as professional?
• When can a licensed mortgage loan originator renew their license in Utah?
• In which scenario can a loan originator charge a pre-payment penalty?
• If a borrower takes action against a loan originator, how long can they usually wait for a response before taking further action?
• If a mortgage loan originator fails to pay the appraiser for services rendered, what may happen?
• Which of the following is true if a licensee receives a cease and desist order?
• When is the Principal Lending Manager NOT responsible for maintaining records?
• If a hearing results in a $2,500 fine for a licensee, to whom should they appeal the decision if they choose to do so?
• What is the time frame in which a party must request a hearing after a cease and desist order is issued?
• How long must a borrower wait for a cancellation of a loan modification agreement to take effect?
• Who must be bonded in the State of Utah?
• What can be a consequence if a buyer fails to meet deadlines outlined in the purchase contract?
• How many members are on the Utah Residential Mortgage Regulatory Commission?
• What period must pass for an applicant to be eligible for licensure after being denied due to misconduct in a professional capacity related to mortgage lending?
• If a licensee believes incorrect information is in the NMLS database, what can they do?
• For a timely renewal, a licensed mortgage loan originator may renew their license:
• What task involves communicating with a borrower to collect necessary information for loan processing?
• Who appoints the members of the Utah Residential Mortgage Regulatory Commission?
• How many hours of education must a new license applicant complete in Utah if they have no prior mortgage education?
• If the seller defaults and the buyer chooses to accept liquidated damages, what will the buyer receive?
• If a buyer defaults on a contract and the seller seeks to compel the buyer to close on the home, this request is for what legal remedy?
• Which advice is acceptable for a borrower regarding a loan modification?
• An individual convicted of a felony involving a breach of trust is applying for what?
• Which of the following is a responsibility of a mortgage loan originator related to appraisal orders?
• Which of the following actions is not specifically prohibited under Utah rules?
• Which type of loan must an individual mortgage loan originator be registered under?
• When can a fee be charged in the loan modification process?
• What can a child support arrearage indicate about an individual applying for a mortgage loan originator's license?
• For what reason can a borrower cancel the purchase contract according to appraisal results?
• If a mortgage loan originator orders an appraisal but does not pay the appraiser, what could occur?
• In a mortgage closing, what document specifies the financial transactions between parties?
• How long must continuing education certificates be retained after license renewal?
• What typically happens during the 'closing' process of a real estate transaction?
• Who is responsible for the retention and disposition of records in an active lending entity?
• What is the maximum fine that can be imposed on a licensee by the Department of Finance?
• If a licensee fails to comply with applicable Utah law, what penalty may be imposed by the Division of Real Estate or the Department of Finance?
• In Utah, what is considered the business of making or originating a mortgage loan with the expectation of compensation?
• What consequence may loan originators face under Utah law for failing to comply with regulations?
• In the context of the Utah standard Real Estate Purchase Contract, what is "actual damages" primarily meant to cover?
• What does a seller seek when asking for reimbursement of costs incurred due to a buyer's default?
• Any loan modification agreement between a licensee and borrower must include how many days of cancellation provision?
• If an individual files a complaint against a mortgage loan originator, what must the originator do?
• What is an important qualification for obtaining a Utah mortgage loan originator's license?
• If the Department of Finance issues an order to stop a lender from making loans, when must a hearing be held upon the lender's request?
• Under what condition are cancellation fees allowed according to Utah rules?
• What type of communication with a seller is appropriate for a loan originator assisting a borrower purchasing a home directly?
• Which department primarily regulates a mortgage loan originator who originates a line of credit secured by residential Utah property?
• What liability does a loan originator have if a loan does not close on the agreed date, due to no fault of the borrower?
• According to Utah rule, who is responsible for the proper destruction of records?
• If a mortgage loan originator is found guilty of violating a statute, who is held accountable?
• What is the primary benefit of including contingencies in purchase contracts?
• According to Division of Real Estate rules, doing business in a name other than the originator's sponsoring entity is considered:
• Under Utah rules, which reason would NOT result in losing a mortgage loan originator's license?
• What is true regarding compensation when one mortgage loan originator refers a loan to another?
• How many members are in the Utah Residential Mortgage Regulatory Commission?
• What is considered acting as a loan originator according to Utah statute?
• What is a primary goal of the Division of Real Estate regarding mortgage loan originators?
• If a borrower refuses to disclose debts when refinancing, what is the best course of action?
• Who is required to attend the closing of a mortgage loan according to Utah law?
• If a company were to lose their Principal Lending Manager, what happens with the other licensees?
• In real estate transactions, what does the term “liquidated damages” refer to?
• Utah rule allows the Division to consider the individual's training, education, and experience in the mortgage loan business when evaluating an applicant's _______?
• According to Utah law, what is the maximum fee for the recovery fund that can be assessed to an individual licensee?
• What is the timeframe for a licensee to request a hearing after a cease and desist order is issued by the Division of Real Estate?
• According to Utah law, possession of a property is based upon what event?
• What may a history of drug abuse be used as evidence of in a Utah loan originator's license application?
• Which factor is NOT considered when determining if loan fees are excessive?
• What can be done if a licensee finds incorrect data in their NMLS record?
• In Utah, what type of evidence does an outstanding child support payment potentially reflect in a mortgage loan originator’s license application?
• Which contract must disclose all leases affecting a property subject to a purchase contract?
• Which agency regulates a closed-end mortgage recorded in second position on a Utah property?
• What happens if a loan originator is found guilty of a felony involving trust?
• Which department must entities covered by the Utah Consumer Credit Code file a notification with?
• What is the maximum fine a licensee may face for violating regulations in Utah?
• What is the maximum fine for a loan originator violating a statute enforced by the Department of Financial Institutions?
• In which situation must a PLM send a notice of termination to a licensee via certified mail?
• If a seller defaults on a contract, what is the buyer's first option for remedy?
• According to the Utah approved Real Estate Purchase Contract, the earnest money funds must be deposited within how many calendar days of acceptance and receipt?
• What action can the Division of Real Estate take against a licensee before holding a hearing?
• Which of the following would be considered a third-party provider in the context of mortgage transactions?
• What must be disclosed to borrowers regarding variable interest rates?
• What are the education requirements for licensure with the Utah Division of Real Estate?
• When a mortgage loan originator refers a loan to another mortgage loan originator, what is true about compensation?
• What individual qualification is necessary for an entity with a single location to license in Utah?
• When does an owner of a licensed mortgage entity need to be licensed according to Utah regulations?
• Is it a violation of Utah law for a loan originator to refuse payment to an appraiser whose report does not meet accepted standards?
• If a licensee maintains an office outside of Utah and the Division wishes to inspect records, what must the licensee reimburse the Division for?
• Which of the following roles can a loan originator also perform in the same transaction under Utah mortgage law?
• Will a no contest plea for a felony drug charge affect a person's ability to obtain a loan originator’s license if it was entered 8 years prior?
• How long is an applicant's score on the principal lending manager (PLM) exam valid?
• What is the maximum fine that can be levied against a licensee for a violation?
• The earnest money deposit serves as which of the following?
• Which reason is NOT associated with losing a mortgage loan originator’s Utah license?
• Who is required to be bonded in the State of Utah?
• What is the deadline for entities that have filed a notification under the Utah Consumer Credit Code to refile annually?
• What is the required bond amount for a business entity licensed through the DFI with an annual origination volume of $5 million?
• According to Utah's Real Estate Purchase Contract, when can a buyer cancel based on appraisal issues?
• Which entity has some jurisdiction over the mortgage industry in Utah?
• What is the main purpose of the U.S. Real Estate Purchase Contract?
• What is the maximum fee a loan originator can charge before modification documents are recorded?
• Can a seller take out a draw on a second mortgage after accepting an offer according to Utah law?
• What is the requirement for a licensed mortgage loan originator convicted of a criminal offense?
• When disciplining a licensed individual, what can the Division of Real Estate NOT do?
• Which entity must an individual mortgage loan originator employed by a depository institution be registered under?
• Which of the following actions may adversely affect an applicant's chances of obtaining a mortgage license?
• Which of the following is an accurate statement of the address requirements of a licensed mortgage entity in Utah?
• If a mortgage loan originator discards a file which has been closed for five years by simply throwing it in a dumpster, what could be the consequence?
• Under the Utah Residential Mortgage Practices and Licensing Act, who is required to maintain a valid license?
• When can a mortgage loan originator who fails the SAFE exam on their first attempt retake the exam?
• What is required for a borrower to receive assistance with a loan modification on a Utah property?
• According to the Utah Residential Mortgage Practices and Licensing Act, what qualifies as a residential mortgage loan?
• What is the required bond amount for a mortgage loan originator with an annual origination volume less than $5 million?
• What must a mortgage loan originator do if they receive a complaint?
• Which of the following activities is acceptable for a loan originator under Utah mortgage law?
• What regulatory body covers a transaction of a second mortgage for household purposes?
• A mortgage broker knows a borrower will not occupy the property but insists on owner occupancy. What should the loan officer do?
• During an investigation by the Division of Real Estate, they are unable to do which of the following?
• When advertising, what requirement must a loan originator meet regarding their individual name?
• Under Utah rule, when must a loan originator provide a borrower with a copy of their appraisal?
• What does the competence to transact the business of mortgage loans include according to Utah law?
• According to the Utah Residential Mortgage Practices and Licensing Act, what is required to demonstrate competence in mortgage transactions?
• What is the minimum number of hours which must be devoted to federal law in the NMLS required pre-licensing education?
• What role does the Department of Commerce play in relation to mortgages in Utah?
• Under what circumstances can a licensee require a borrower to sign a blank document?
• What is the purpose of the mortgage loan originator's written statement about appraisal fees?
• If the buyer defaults on a transaction and the seller decides to sue for actual damages, what happens to the earnest money?
• What is one of the primary requirements for obtaining a loan originator's license in Utah regarding competency?
• What is the maximum daily fine for failing to renew a loan originator license in Utah?
• What is the limit of payment from the Division of Real Estate's Recovery Fund per violation?
• If a loan originator fails to appear for a scheduled hearing, what can the hearing officer do?
• If a buyer cancels based on an inability to qualify for financing after the Financing Deadline, what remedy is available to the seller?
• When is it acceptable for a mortgage loan originator to deny a loan?
• How long does a licensee have to appeal a revocation order issued by the Commission and the Division?
• What is the purpose of the Closing Disclosure in mortgage transactions?
• When a mobile home is purchased and installed on a building lot, what must be filed to have it considered real property?
• What is true about signs for properties "for sale by owner" provided by mortgage loan originators?
• What type of information must an applicant provide to the Division of Real Estate?
• According to Utah regulations, which characteristic can be evaluated based on an individual's last criminal conviction?
• Which organization is primarily responsible for regulating real estate practices in Utah?
• Which of the following is not a power of the Department of Financial Institutions?
• When must an individual notify the Division of Real Estate if they wish to change their affiliation from one entity to another?
• What must a licensed mortgage loan originator provide upon accepting a deposit for an appraisal fee?
• If a licensed mortgage loan originator fails to renew their license on time, what is the most accurate statement regarding their renewal options?
• When assessing an applicant's ability to conduct mortgage lending, what aspect is typically ignored?
• What is a necessary registration requirement for loan originators in Utah?
• A Utah licensed mortgage loan originator may receive compensation on a Utah transaction from which of the following?
• What is the consequence for a Colorado licensed loan originator taking a loan application for a Utah property?
• What is the main restriction on fees charged by loan originators according to Utah statute?
• What is required for a cease and desist order to be issued against a property management operation?
• According to Utah statute, what title is given to an individual who takes a residential mortgage loan application for compensation?
• What is the maximum fine that may be imposed on a licensee for rule violations?
• Which of the following does NOT have jurisdiction over the mortgage industry in Utah?
• What is the minimum information required for the Division of Real Estate to issue a cease and desist order?
• What is the most accurate statement regarding hazard insurance coverage as per Utah law?
• How long does a mortgage loan originator have to renew their license before potentially beginning the licensing process again?
• What is a requirement for all notices under the Utah standard Real Estate Purchase Contract?
• What addresses must an applicant provide as part of the license application to the Division of Real Estate?
• According to the REPC, what type of Homeowner's Policy must the seller purchase for the buyer, if available?
• What must a mortgage loan originator do when accepting an appraisal fee from a borrower?
• A swing set that is permanently attached to the yard of a home is categorized as what?
• If a loan originator fails to appear for a properly scheduled hearing, what may the hearing officer do?
• What should a licensee do if a buyer wants to make an offer but does not have the earnest money funds?
• Which entity issues licenses to mortgage loan originators in Utah?