Ethics

Question 1

What type of scam entails homeowners who are encouraged to refinance their property over and over until little or no equity remains?
1. Extreme lending
2. Property Skimming
3. Reverse equity
4.Loan flipping

Answer 1

4. Loan flipping

Question 2

Also known as panic selling. This is when a homeowner panics due to someone causing fear regarding changes in the neighborhood, which leads them to thinking they need to sell before the neighborhood “goes down.”
1. Steering
2. Blockbusting
3. Redlining

Answer 2

2. Blockbusting

Question 3

The Fair Housing Act, Title VIII of the Civil Rights Act, governs all forms of housing except…

Answer 3

Personal property (Like cars)

Question 4

Steering is…

Answer 4

Steering relates to buyers or renters and is defined as channeling prospective buyers or renters to or away from specific neighborhoods

Question 5

T/F: The Truth in Lending Act requires that the APR be quoted along with the interest rate.

Answer 5

TRUE

Question 6

Consumer Privacy Policy disclosure is required to be provided annually as long as the relationship continues according to which act?

Answer 6

Gramm-Leach-Bliley Act,

Question 7

To address the problem of property flipping, appraisers must analyze the transfer history of a property for the previous
A. 3 months
B. 2 years
C. 3 years for subject property; 1 year for the comparable properties

Answer 7

C. 3 years for subject property; 1 year for the comparable properties

Question 8

The Gramm-Leach-Bliley Act is more formally known as the…

Answer 8

Financial modernization Act of 1999
includes a provision known as the Financial Privacy Rule

Question 9

The Fair Housing Act requires a lender to use what term in any advertisement broadcast over the airwaves?
1.) ECOA
2.) Equal Opportunity Housing
3.) Equal Housing Lender

Answer 9

3.) The Fair Housing Act requires the use of the phrase “equal housing lender” in all broadcast advertising.

Question 10

which of the following documents should be signed at closing if the creditor intends to transfer the servicing of the mortgage loan subsequent to funding?
1.) Servicing Transfer disclosure statement
2.) Servicing disclosure
3.) Servicing statement
4.) Servicing disclosure statement

Answer 10

3.) Servicing Disclosure statement (SDS)

Question 11

Which law requires disclosure of all sources of income?
1.) TILA
2.) RESPA
3,) HMDA
4.) None

Answer 11

NONE BAE NONEEEE protected by ECOA