Chapter 1: Federal Lending Legislation Review Quiz

Question 1

TILA Closing Disclosure

Answer 1

3 business days prior to closing

Question 2

ECOA, Not considered adversely when underwriting the loan?

Answer 2

borrower’s receipt of public assistance

Question 3

Truth in Lending Act Rescind Loan

Answer 3

3 years (APR Not Disclosed)

Question 4

Gramm-Leach Bliley Act Privacy Rule

Answer 4

before disclosing information to non-affiliated third parties

Question 5

Section 32 loan

Answer 5

high cost loan

Question 6

Home Ownership and Equity Protection Act

Answer 6

Section 32 loan

Question 7

Home Mortgage Disclosure Act

Answer 7

requires Race be included on the loan application

Question 8

Title V

Answer 8

SAFE Act

Question 9

$10,000 Cash Transactions

Answer 9

BSA/AML

Question 10

What is the maximum fine Do-Not-Call violation.

Answer 10

$16,000 each

Question 11

protect consumer information while it is in the custody and control of the institution and its agents

Answer 11

Safeguards Rule

Question 12

Which federal act created the Consumer Financial Protection Bureau?

Answer 12

Dodd-Frank Act

Question 13

MARS Rule

Answer 13

bans providers of mortgage foreclosure rescue loan modification services from collecting fees

Question 14

NOT included in the Home Mortgage Disclosure Act

Answer 14

vacant land loans less than 25 acres

Question 15

Refinancing right to rescind the loan

Answer 15

3 business days including Saturday, and excluding Sunday & federal holidays

Question 16

A lender has how many days to notify the borrower

Answer 16

30

Question 17

RESPA applies to all

Answer 17

real estate credit transactions for one-to four-family dwellings

Question 18

A loan’s initial APR must be disclosed on

Answer 18

Loan Estimate

Question 19

FCRA, how many days does a credit information provider usually have to respond to the consumer

Answer 19

30

Question 20

FACTA, a mortgage loan originator

Answer 20

place all loan applications and documentation in a secure place when not working on them

Question 21

Mortgage Disclosure Improvement Act, how soon can a residential loan close?

Answer 21

on the seventh business day after delivery of required disclosures

Question 22

10% tolerance between the Loan Estimate and the actual charge at closing

Answer 22

government recording charges

Question 23

The estimate for most settlement charges shown on a Loan Estimate must be available for at

Answer 23

10 days

Question 24

Which fee can be imposed prior to delivery of a Loan Estimate

Answer 24

credit report fee

Question 25

Broker rents office space from a title company at a discount

Answer 25

RESPA violation

Question 26

The APR on the initial Loan Estimate for a 30-year fixed rate loan is 5.99%, and the APR on the Closing Disclosure is 6.25%. After redisclosure, how long must the borrower wait to close the loan?

Answer 26

three business days after redisclosure

Question 27

According to MDIA, a “higher-priced loan” is one that has

Answer 27

an APR that exceeds the applicable average PRIME offer rate by at least 1.5% on first liens

Question 28

Dodd-Frank Act - NOT a qualified mortgage

Answer 28

interest-only loan offerings

Question 29

Bank Secrecy/Anti-Money Laundering Act records

Answer 29

cash purchases of negotiable instruments

Question 30

NOT acceptable reason to provide a revised Loan Estimate to a borrower

Answer 30

The loan originator regretted overlooking certain liabilities in order to qualify the borrower for a better interest rate

Question 31

mortgage loan originator’s compensation

Answer 31

a fixed percentage of the loan amount