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FED LAW (24%) Flashcards

1
Q

What does the USA patriot act stand for?

A

Uniting and Strengthening America by Providing Appropriate tools Required to Intercept and Obstruct Terrorism

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2
Q

What does the Federal Trade Commission regulate?

A
  1. Red flags rule under FCRA.
  2. Disposal rule under FCRA.
  3. Safeguards rule under GLBA.
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3
Q

What is required to be included in the L/AR?

A
  1. Whether the loan was granted.
  2. If the loan was subsequently sold on the secondary market.
  3. The borrowers gross income.
  4. The purpose of the loan.
  5. Location of property.
  6. Reason the loan was denied.
  7. Age
  8. Whether the interest rate changed over a certain threshold.
  9. The type of property.
  10. Loan type
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4
Q

If all owners do not receive two copies of the notice of right to cancel ___________

A

Under TILA section 23 the owners now have 3 years of right to rescind.

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5
Q

What loans are exempt from being a high cost loan?

A

Loans cannot be HOEPA loans
1. Reverse mortgages
2. Construction loans
3. Section 502 direct loans

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6
Q

Define a high cost loan

A

If the points and fees exceeded 5% on loan amounts of $26,092 or more, it’s a high cost loan

If the APR is more than 6.5% above a APOR on a first lien, 8.5% on the subordinate lien

If pre-payment penalties are charged after 36 months or exceeds 2% of the principal balance

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7
Q

If the borrowers APR is 3.5% above the APOR on the subordinate lien _________

A

The loan will be considered a higher priced mortgage loan and will require a mandatory escrow account and full physical appraisal

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8
Q

What law limits telephone solicitations between the hours of 8 AM and 9 PM?

A

The telephone consumer protection act

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9
Q

Define familial status

A

The presence of children, younger than 18 and pregnant women

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10
Q

TILA SECTION 43
A seasoned qualified Mortgage loan must be secured by _______

A

A seasoned QM loan must be secured by a first lien only

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11
Q

How many days to correct non-numerical errors on the closing disclosure?

A

60 days from the day of closing

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12
Q

Who is the regulatory authority of the HPA?

A

HPA is regulated by the CFPB, even though it doesn’t have a regulation letter

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13
Q

What is section 8 of RESPA penalties?

A

Up to $10,000 or one year in prison

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14
Q

Under MAP, how long must commercial communication be retained for?

A

Two years from the last day of commercial communication

2 c’s = 2 years

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15
Q

To bring action for a violation of HPA, the borrower has a timeframe of _________

A

Two years from the date of discovery of the violation

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16
Q

What are the requirements from title 3 of the PATRIOT act?

A
  1. Anti-money laundering program
  2. Sharing information with other financial institutions and the law.
  3. Customer identification program.
    SAND
    SSN
    ADDRESS
    NAME
    DOB
17
Q

What are the requirements to request early PMI removal?

A
  1. The principal balance reaches 80% LTV of the original property value
  2. The borrower has good payment history. (12 months)
  3. There must be proof that the value has not declined using a new appraisal.
  4. No subordinate liens.
18
Q

What is the main purpose of TILA?

A

The main purpose of TILA is to ensure consumers make informed decisions when applying for and receiving financial credit

19
Q

What are the penalties for violating section 6 of RESPA?

A

Damage is not to exceed $1000
Class action $1000 for each violation
Total damage is not to exceed $500,000 or 1% of net worth whatever is less

20
Q

The fair housing act contains accessibility, provisions for dwellings built on or after which year?

A

March 13, 1991

21
Q

What are exempt from the fair housing act?

A
  1. Owner occupied buildings with no more than 4 units
  2. Single-family housing sold or rented without the use of a broker if the owner does not own more than three such family homes at a time.
  3. Housing operated by private clubs or organizations that limit the occupancy to members
22
Q

Jake is refinancing into an arm which disclosures will he receive?

A
  1. The loan estimate.
  2. CHARM
  3. The closing disclosure.
  4. MSDS.
23
Q

What was established by Fannie and Freddie to mirror the valuation independence rule?

A

Fannie and Freddy include an AIR (Appraisal Independence Requirement) with all of their loans that mirror TILA 42

Fannie and Freddie appraisals are good for 120 days

24
Q

What does LIBOR stand for?

A

London Inter-Bank Offered Rate

25
Q

BSA/AML were created to _______

A

The bank secrecy act and the anti-money laundering laws were created to require institutions to report suspicious activities that could indicate money laundering

Regulated by FINCEN and department of treasury

PLAN
AUDIT
COMPLI OFF
TRAIN ALL

26
Q

What is MDIA under TILA?

A

The mortgage disclosure improvement act requires a 7 day waiting period between when the initial disclosures and loan estimate for all other mortgages are received or placed in the mail and when the loan can consummate

Intent to proceed for all closed-end mortgages

If a change of circumstance occurs, then revised disclosure must be provided in an additional 3 business days must be added to wait for consummation

27
Q

Under FCRA/FACTA, when the consumer submits, an identity theft report to a CRA it’s called?

A

An extended fraud alert, and it must be filled out for at least 7 years

28
Q

Who determines the record retention and penalties for the E sign act?

A

The law governing the disclosure being E-signed

29
Q

Explain the FTC safeguards rule under GLBA

A

The Federal Trade Commission safeguards rule requires financial institutions to develop a written info security plan and how the company is prepared for and plan to continue protecting consumers non-public personal information

30
Q

Which disclosure is required under FCRA/FACTA?

A

The notice of right to receive credit score must be delivered to the consumer at time of completed application or within 3 business days

31
Q

What is section 23 of TILA?

A

The Right to Rescind is applied to reverse mortgages, refinances, HELs and HELOCs

Notice of right to cancel must be delivered at closing. Anyone with ownership rights must receive two copies

32
Q

What does FINCEN stand for?

A

Financial crimes enforcement network

33
Q

The Fair Housing Act is an amendment to which?

A

The Civil Rights act of 1968

34
Q

Class action lawsuit under ECOA

A

500,000% or 1% of networth which is LESS than

SAFE (4 decks)

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