Compucrum Flashcards
The SAFE Act mandates specific topics that must be covered as part of a state-licensed loan originator’s continuing education every year. Which of these is a required topic?
Fair Lending
Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the
SAFE Act
If the final APR on a fixed rate loan deviates from the initial APR shown on the TIL by more than ________, an additional waiting period is triggered before the loan can close.
1/8
of the most critical points of the Federal Reserve Loan Originator Compensation Rule is the prohibition of the practice of
Steering
If a lender transfers the servicing of a mortgage, it must inform the borrower at least how many days in advance of the effective date of transfer?
15
“Higher-priced loans” are defined by which law?
TILA
What are the terms of the “cooling off” period if a loan falls under HOEPA?
Three business days before closing
A lender has how many business days to notify the borrower of an underwriting decision?
30
RESPA requires that all real estate broker and mortgage broker compensation be disclosed in what document?
HUD-1 Statement
How soon after a borrower is provided with all required disclosures may a loan close?
7th business day after loan were disclosed
A nontraditional mortgage loan is defined as
anything other than a 30-year fixed rate loan.
According to RESPA, an Affiliated Business Arrangement (AfBA) disclosure must be provided
the referring party must give the AfBA disclosure to the consumer at or prior to the time of referral.
What doe HMDA stand for ?
Home Mortgage Disclosure act
A $100,000 loan will be considered a Section 32 loan if the the points and fees are greater than
5%
The main purpose of the FCRA is to help ensure that,
when applying for loans, consumers are evaluated with accurate and confidential credit reports.
Which federal law requires financial institutions to file reports of cash transactions exceeding a daily aggregate amount of $10,000?
It is the Bank Secrecy Act/Anti-Money Laundering Act that includes this requirement.
When the lender loans money to a borrower and the borrower gives the lender a mortgage, this is referred to as a
primary mortgage market
Which sets forth escrow requirements for higher priced mortgage loans?
TILA
What federal legislation allows the borrower to challenge the value stated on an appraisal report?
ECOA
MLOs are prohibited from
telling an appraiser a minimum value needed to approve the loan.
HOEPA amends what law?
TILA
Based on 2013 amendments to TILA related to HOEPA covered loans, home ownership counseling is
Required
What law regulates settlement and closing procedures and practices?
RESPA
How many days after receiving an adverse action notice does a consumer have to request a copy of the credit report on which the decision was based?
60
Which fee would NOT be considered a finance charge and would NOT be part of the APR calculation?
escrow deposit for property taxes
Which of these circumstances would NOT be an acceptable reason to provide a revised GFE to a borrower?
The loan originator regretted overlooking certain liabilities in order to qualify the borrower for a better interest rate.
Borrower Finn wants to refinance his loan. What might his MLO use to determine who is servicing Finn’s current loan?
The Mortgage Electronic Registrations System (MERS) helps mortgage lenders eliminate the need for recording mortgage loan assignments when ownership rights change in secondary market transactions.
Which mortgage clause allows a lender to declare the entire unpaid balance due on a borrower’s default?
Accretion
Which activity is considered a significant stabilizing influence of the secondary mortgage market?
standardization of loan criteria
A mortgage loan that is upside down is one in which the balance owed is
greater than the value of the property.
Which fee is a lender prohibited from charging?
Lenders are prohibited from charging a fee to prepare required disclosures.
The income approach is most often used for what type of appraisal?
commercial
How long does a bankruptcy stay on the credit report under FICO scoring?
7-10 years
A credit account where the borrower places a certain amount of money on deposit with a credit card issuer is known as
secured
A Home Ownership and Equity Protection Act (HOEPA) loan is triggered when the total points and fees paid by the consumer exceed the larger of $______, for 2014, or 8% of the loan amount. (These figures are adjusted annually).
$632.00
Which agency is responsible for enforcement of the Ability to Repay rules?
The Consumer Financial Protection Bureau is responsible for the enforcement of ATR rules.
The legislation that restricts the circumstances under which a financial institution may disclose a consumer’s personal financial information to non-affiliated third parties is the
Gramm-Leach-Bliley Act.
Which regulation provides guidelines and restrictions on the process of renting, financing, and selling properties?
Fair Housing Act
Whose signature is forged in a deed scam
Seller
Which law encourages financial institutions to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound lending practices?
CRA
Unintentional breach of a legal duty is unethical and is considered
negligence
A loan originator’s license expires every year on
Dec 31
Lenders of a high-cost loan are NOT permitted to consider the borrower’s _____________ using commercially reasonable practices.
familial status or age
Able Mortgage Company, a licensed mortgage broker, has maintained one principal location for 10 years. The company now wants to expand by opening another full-service brokerage office in a growing area of the state where there is new housing development. What type of license is required for this expansion?
a mortgage broker branch office license
