The loan-to-value (LTV) ratio is calculated by dividing the loan amount by the lesser of the appraised value or the purchase price of the property. This protects lenders from over-lending on a property that may have a sales price above its actual market value.
"The loan-to-value ratio is calculated by dividing the loan amount by the lesser of the appraised value or sales price."
- Fannie Mae Selling Guide; SAFE MLO National Test Study Guide
References:
Fannie Mae, LTV Ratio Definition

Under the CFPB mortgage servicing rules, a mortgage company cannot initiate foreclosure proceedings until a borrower's loan is at least 120 days delinquent. This rule is designed to give borrowers sufficient time to explore loss mitigation options, such as loan modification, forbearance, or repayment plans, before facing foreclosure.
* The 120-day delinquency rule applies to all residential mortgage loans, providing a mandatory grace period before foreclosure filing.
This requirement is part of the Dodd-Frank Act and is enforced under Regulation X.
References:
* CFPB Mortgage Servicing Rules
* 12 CFR Part 1024 (Regulation X)

Real estate brokerage activities are not a primary function of a mortgage loan originator (MLO). The MLO's primary role is to assist consumers in taking an application (A), offering or negotiating credit terms (B), and helping consumers apply for credit (C).
* Real estate brokerage activities, such as negotiating real estate transactions, are separate from the loan origination process and require different licensing and qualifications.
References:
* SAFE Act, 12 USC §5101
* NMLS MLO Licensing Guidelines

The SAFE Act and Regulation Z require that all mortgage loan originator advertisements include the MLO's NMLS unique identifier. This ensures transparency and accountability.
"Any advertisement by a state-licensed mortgage loan originator must clearly show the unique identifier of the mortgage loan originator."
- SAFE Act, 12 U.S.C. § 5104(a)(2); 12 CFR § 1026.36(g)(1)
References:
SAFE Act, 12 U.S.C. § 5104
Regulation Z, 12 CFR § 1026.36(g)

Under the SAFE Act, an individual must be licensed as a mortgage loan originator (MLO) if they take a residential mortgage loan application and offer or negotiate terms for compensation or gain. Activities such as only performing clerical or support duties, or acting solely as a real estate broker in their normal capacity, do not require an MLO license.
"The term 'mortgage loan originator'... means an individual who (i) takes a residential mortgage loan application; and (ii) offers or negotiates terms of a residential mortgage loan for compensation or gain."
- SAFE Act, 12 USC § 5102(4)
References:
SAFE Act, 12 USC § 5102(4)
NMLS Uniform State Content Outline