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Mortgage Broker 2.0 > Compucrum > Flashcards

Compucrum Flashcards

1
Q

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?

A

Fair Lending

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2
Q

Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the

A

SAFE Act

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3
Q

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.

A

1/8

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4
Q

of the most critical points of the Federal Reserve Loan Originator Compensation Rule is the prohibition of the practice of

A

Steering

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5
Q

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?

A

15

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6
Q

“Higher-priced loans” are defined by which law?

A

TILA

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7
Q

What are the terms of the “cooling off” period if a loan falls under HOEPA?

A

Three business days before closing

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8
Q

A lender has how many business days to notify the borrower of an underwriting decision?

A

30

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9
Q

RESPA requires that all real estate broker and mortgage broker compensation be disclosed in what document?

A

HUD-1 Statement

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10
Q

How soon after a borrower is provided with all required disclosures may a loan close?

A

7th business day after loan were disclosed

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11
Q

A nontraditional mortgage loan is defined as

A

anything other than a 30-year fixed rate loan.

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12
Q

According to RESPA, an Affiliated Business Arrangement (AfBA) disclosure must be provided

A

the referring party must give the AfBA disclosure to the consumer at or prior to the time of referral.

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13
Q

What doe HMDA stand for ?

A

Home Mortgage Disclosure act

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14
Q

A $100,000 loan will be considered a Section 32 loan if the the points and fees are greater than

A

5%

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15
Q

The main purpose of the FCRA is to help ensure that,

A

when applying for loans, consumers are evaluated with accurate and confidential credit reports.

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16
Q

Which federal law requires financial institutions to file reports of cash transactions exceeding a daily aggregate amount of $10,000?

A

It is the Bank Secrecy Act/Anti-Money Laundering Act that includes this requirement.

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17
Q

When the lender loans money to a borrower and the borrower gives the lender a mortgage, this is referred to as a

A

primary mortgage market

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18
Q

Which sets forth escrow requirements for higher priced mortgage loans?

A

TILA

19
Q

What federal legislation allows the borrower to challenge the value stated on an appraisal report?

A

ECOA

20
Q

MLOs are prohibited from

A

telling an appraiser a minimum value needed to approve the loan.

21
Q

HOEPA amends what law?

A

TILA

22
Q

Based on 2013 amendments to TILA related to HOEPA covered loans, home ownership counseling is

A

Required

23
Q

What law regulates settlement and closing procedures and practices?

A

RESPA

24
Q

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?

A

60

25
Q

Which fee would NOT be considered a finance charge and would NOT be part of the APR calculation?

A

escrow deposit for property taxes

26
Q

Which of these circumstances would NOT be an acceptable reason to provide a revised GFE to a borrower?

A

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

27
Q

Borrower Finn wants to refinance his loan. What might his MLO use to determine who is servicing Finn’s current loan?

A

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.

28
Q

Which mortgage clause allows a lender to declare the entire unpaid balance due on a borrower’s default?

A

Accretion

29
Q

Which activity is considered a significant stabilizing influence of the secondary mortgage market?

A

standardization of loan criteria

30
Q

A mortgage loan that is upside down is one in which the balance owed is

A

greater than the value of the property.

31
Q

Which fee is a lender prohibited from charging?

A

Lenders are prohibited from charging a fee to prepare required disclosures.

32
Q

The income approach is most often used for what type of appraisal?

A

commercial

33
Q

How long does a bankruptcy stay on the credit report under FICO scoring?

A

7-10 years

34
Q

A credit account where the borrower places a certain amount of money on deposit with a credit card issuer is known as

A

secured

35
Q

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).

A

$632.00

36
Q

Which agency is responsible for enforcement of the Ability to Repay rules?

A

The Consumer Financial Protection Bureau is responsible for the enforcement of ATR rules.

37
Q

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

A

Gramm-Leach-Bliley Act.

38
Q

Which regulation provides guidelines and restrictions on the process of renting, financing, and selling properties?

A

Fair Housing Act

39
Q

Whose signature is forged in a deed scam

A

Seller

40
Q

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?

A

CRA

41
Q

Unintentional breach of a legal duty is unethical and is considered

A

negligence

42
Q

A loan originator’s license expires every year on

A

Dec 31

43
Q

Lenders of a high-cost loan are NOT permitted to consider the borrower’s _____________ using commercially reasonable practices.

A

familial status or age

44
Q

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

a mortgage broker branch office license

Mortgage Broker 2.0 (2 decks)

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