61-80 Flashcards
Sergio and Victoria have closed on the purchase of their new home on a Friday. Under the terms of Regulation Z, how long will they after have after completing all the required settlement paperwork to rescind the loan (assuming it is not a high-cost loan)?
0 days; there is no right of rescission
A borrower obtains a 1-year adjustable-rate loan with a 2.25% margin, 1% per adjustment cap, and a start rate of 3.5%. The index on the loan at the adjustment is after the first 12 months, the index is 2.00%, after 24 months, the index is 3.17%, and at 36 months, the index is 4.14%. What will be the borrower’s interest rate be at 37 months into the loan?
6.25%
When taking an application for a mortgage loan, what are creditors not permitted to ask?
Do you receive child support?
FNMA biweekly mortgages require drafting the borrower’s bank account:
Every 14 calendar days
Which is NOT a protected class according to the federal Fair Housing Act?
(a) Age
The mortgagor is known as the:
borrower.
The SAFE Act is designed to enhance consumer protection and reduce fraud by:
encouraging states to establish minimum standards for the licensing and registration of state-licensed mortgage loan originators.
Benefits of a Section 502 Guaranteed Rural Housing Loan include all the following characteristics except?
The up-front mortgage insurance fee may be added to the borrower’s loan amount.
Which federal legislation requires that the borrower have the right to receive a copy of his or her credit report, without charge, annually?
FACTA
Under the SAFE Act, an individual may take the SAFE MLO test three consecutive times, with each retest occurring at least:
30 days after the preceding test.
The Good Faith Estimate, HUD-1, Initial and Final Truth-in-Lending disclosures are required under RESPA and TILA for which of the following loans?
Chattel- dwelling loans such as loans secured by a mobile home or by s dwelling that is not attached to real property
The Truth in Lending Act establishes requirements for appraisal independence for consumer credit transactions secured by the consumer’s principal dwelling. Which of the following statements would be permissible when communicating with an appraiser?
“Can you explain why this property is valued so low compared to the current market?”
Big Money Bank receives a change of address request from a consumer. Which of the following requires the bank to follow up with the consumer to verify the validity of the request?
Red Flag Rules
A borrower closed a loan last week with Metropolis Mortgage Company. The consumer’s name is on the National Do Not Call Registry and on Metropolis Mortgage Company’s internal do not call list. Metropolis Mortgage Company:
Cannot call her because she is on Metropolis Mortgage Company’s internal list.
Which of the following, as defined by the SAFE Act, is a Federal Banking Agency?
Federal Deposit Insurance Corporation (FDIC)
