1-20 Flashcards
A mortgage loan originator must provide the Loan Estimate to the consumer:
No later than the third business day after the creditor receives the consumer’s application for a mortgage loan.
The Gramm-Leach-Bliley Act requires financial institutions to provide consumers with a notice of their information-sharing policies. Which of the following is not an acceptable means of providing the required privacy notice?
Posting notice in on an office wall
After a loan closing, funds are disbursed. When are the funds disbursed for an owner-occupied residential refinance?
After the three business-day rescission period.
Violations of Section 8’s anti-kickback, referral fees, and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case, a person who violates Section 8 may be fined up and imprisoned:
Up to $10,000 and up to 1 year in prison.
Which of the following allows a prepayment penalty during the first three years after the loan is consummated?
Home Ownership and Equity Protection Act Loan
The URLA divides the application into five different forms. Which of the following is not one of the five forms that make up the URLA?
Uniform Residential Loan Application-Information for Government Monitoring Purposes
Which is NOT a purpose for the Mortgage Servicing Disclosure Statement?
To inform the consumer of the likelihood that the mortgage could be sold in the secondary market
A Latina applies to a mortgage company for a home loan. She is refused based on the neighborhood’s reputation for a high number of foreclosures. This is an example of what illegal practice?
Redlining.
As defined by the S.A.F.E. Mortgage Licensing Act of 2008, all the following mortgage products are considered non-traditional mortgage products except:
30-year Fixed-Rate Mortgages.
Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with “high-cost” mortgages?
Home Ownership and Equity Protection Act (HOEPA)
The type of mortgage that provides an elderly borrower with a monthly check instead of the borrower paying a monthly payment is known as:
Reverse Mortgage
According to the Fair Credit Reporting Act, if adverse action is taken against a credit applicant because of information on a credit report, the lender who used that report is required to:
provide the consumer the name, address, and telephone number of the consumer reporting agency that furnished the report
Lenders that generate mortgage loans may receive some degree of legal protection against borrower Ability to Repay lawsuits. The level of protection they receive will depend on the type of loan they make. What type of mortgage loan gives the lender the greatest level of protection against borrower lawsuits?
Safe Harbor Qualified Mortgage Loan
In the promissory note, what gives the lender the right to charge the borrower a fee for paying off the loan early?
Prepayment penalty.
Regulation Z is also known as the:
Real Estate Settlement Procedures Act.
