Federal Laws Flashcards by Christopher Yearian

Pre-Empted states’ rights to limit loans to fixed rate mortgages and allowed ARMS

AMPTA

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Alternative Mortgage Transaction Parity Act

AMPTA

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AMPTA

Alternative Mortgage Parity Transaction Act

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1982 pre-empted states’ rights to limit pre-payment penalties and late fees, allowed ARMS

AMPTA

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pre-emption over prepayment penalties lifted in 2002

AMPTA

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Reg D

AMPTA

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AMPTA reg

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AMPTA reg authority

CFPB

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BSA/AML

Bank Secrecy Act/Anti Money Laundering

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Bank Secrecy Act/Anti Money Laundering

BSA/AML

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requires reporting of cash in excess of $10k

Bank Secrecy Act/Anti Money Laundering

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Requires a reporting program under FINCEN

Bank Secrecy Act/Anti Money Laundering

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DIDMCA

Depository Institutions Deregulation Monetary Control Act

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deregulated interest rates

Depository Institutions Deregulation Monetary Control Act

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regulating agency for BSA/AML

US Dept of Treasury

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Do Not Call Improvement Act

DO NOT CALL

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Do Not Call Improvement Act regulatory agency

FTC

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FTC

Federal Trade Commission

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FTC enforces_______

Do Not Call Improvement Act

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Limits mortgage companies from contacting a client who is on the national DNC registry

Do Not Call Improvement Act

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DNC limits up to _________ months after the last transaction with the mortgage company for clients

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DNC limits up to __________ months after a client makes an inquiry

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If a person does not want a call back from a mortgage company______

place the person on a DNC list

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DNC fines can be $________________ per violation

$50,120

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$50,120 is a fine for

DNC violations

State DNC fines can vary b/w $__________ up to $_______________

$100 up to $25,0000 per call

Equal Credit Opportunity Act

ECOA

ECOA stands for

Equal Credit Opportunity Act

Equal Credit Opportunity Act regulation _____

Reg B is _______

Equal Credit Opportunity Act

Equal Credit Opportunity Act is enforced by

CFPB

prohibits discrimination based on: 1. Age 2. Sex 3. Marital Status 4. Race Religion 5. Color 6. National Origin 7. Receipt of Public Assistance

Equal Credit Opportunity Act Reg B

ECOA definition for single, divorced or widowed

unmarried

________ an ECOA category, not single, divorced or widowed

unmarried

in ECOA, unmarried is correct, saying __________, ____________, ___________ is prohibited

single, divorced or widowed

ECOA requires: ______________ within 30 days

Notice of Action

In ECOA, Notice of Action is required in __________ days

Notice of Action w/in 30 days refers to

ECOA

This requires a right to receive a copy of the appraisal anytime during the application but no later than when action is taken

ECOA

ECOA requires the right to receive a _______________ anytime during the application but no later than when action is taken

copy of the appraisal

In ECOA, if a loan does not close, a ___________________ is required to be made available to the borrower w/in 30 days

copy of the appraisal

In ECOA, if a loan does not close, a copy of the appraisal is required to be made available to the borrower w/in ______ days

In ________, if a loan does not close, a copy of the appraisal is required to be made available to the borrower w/in 30 days

ECOA

This requires consumers to receive a reason for a denial, the contact information for the provider of the information

ECOA

Adverse summary is aka

denial notice

ECOA defines a denial notice as a _____________

Adverse summary

ECOA requires record retention for __________________months

What reg requires record retention for 25 months?

ECOA

FCRA is

`Fair Credit Reporting Act

`Fair Credit Reporting Act is reg ___________

Reg V is _______________

FCRA

Reg V is enforced by the ?

CFPB

FCRA is enforced by?

CFPB

This controls how CRAs collect and share consumer information

FCRA

This limits reporting derogatory information to 7 years and bankruptcies to 10 years

FCRA

______ limits reporting derogatory information to ____ years and bankruptcies to ______ years

FCRA, 7, 10

FCRA limits reporting derogatory information to ____ years and bankruptcies to ______ years

7, 10

This allow consumers to challenge inaccuracies on the CR

FCRA

Reg _______allows consumers to challenge inaccuracies on the CR

This allows consumers to receive a free copy of a CR annually

FCRA

Reg _______allows consumers to receive a free copy of a CR annually

FCRA reg V allows consumers to receive a ______ copy of a CR ______

free, annually

FACTA stands for

Fair and Accurate Credit Transaction Act

Fair and Accurate Transaction Act

FACTA

FACTA is under reg ___________

Reg V creates______________ and _______________

FCRA and FACTA

FACTA is regulated by

CFPB

This makes the provisions of FCRA permanent in 2003

FACTA

FACTA makes the provisions of _______________ permanent in 2003

FCRA

FACTA makes the provisions of FCRA permanent in ____________

2003

______________relates to identity theft

FACTA

FACTA relates to _______________

identity theft

FACTA relates to _______________ theft

identity

FACTA requires __________ reasons for a credit score

____________ requires __________ reasons for a credit score

FACTA, 4

____________ requires 4 reasons for a credit score

FACTA

FACTA requires 4 reasons for a _______________

credit score

FACTA requires 4 _____________ for a credit score

reasons

This Requires reporting agencies to put a 1 year alert on a consumer's credit file if they get a call indicating the possibility of identity theft

FACTA

FACTA This Requires reporting agencies to put a _____ year(s) alert on a consumer's credit file if they get a call indicating the possibility of identity theft

FACTA Requires ______________ to put a 1 year alert on a consumer's credit file if they get a call indicating the possibility of identity theft

reporting agencies

FACTA Requires reporting agencies to put a ________ year alert on a consumer's credit file if they get a call indicating the possibility of identity theft

___________ Requires reporting agencies to put a 1 year ___________ on a consumer's credit file if they get a call indicating the possibility of identity theft

FACTA, alert

FACTA This Requires reporting agencies to put a 1 year alert on a consumer's credit file if they get a call indicating the possibility of ___________________

identity theft

_______ requires fraud alerts extended to 7 years when a police report is filed

FACTA

FACTA requires fraud alerts extended to ____ years when a police report is filed

FACTA requires fraud alerts extended to 7_____ when a police report is filed

years

______ requires fraud alerts extended to 7 years when a ________ is filed

FACTA, police report

_______ directed the FTC to create the Red Flag program to implement ___________, which includes 26 red flag items and requires all lenders and mortgage brokers to implement a red flag system

FACTA directed the FTC to create the Red Flag program to implement FACTA, which includes 26 red flag items and requires all lenders and mortgage brokers to implement a red flag system

FACTA directed the _____ to create the Red Flag program to implement FACTA, which includes 26 red flag items and requires all lenders and mortgage brokers to implement a red flag system

FTC

FACTA directed the FTC to create the ______ program to implement FACTA, which includes 26 ______ items and requires all lenders and mortgage brokers to implement a __________system

Reg Flag, red flag, red flag

FACTA directed the FTC to create the Red Flag program to implement FACTA, which includes _____ red flag items and requires all lenders and mortgage brokers to implement a red flag system

FACTA directed the FTC to create the Red Flag program to implement FACTA, which includes 26 red flag items and requires all _______ and mortgage brokers to implement a red flag system

lenders

FACTA directed the FTC to create the Red Flag program to implement FACTA, which includes 26 red flag items and requires all lenders and ___________ to implement a red flag system

mortgage brokers

FH ACT

Fair Housing Act

Fair Housing Act is aka

FH Act

The FH Act agency is______

HUD

HUD regulates the ___________ housing Act

Fair

This addresses discrimination in housing

FH Act

This agency addresses discrimination in housing

HUD

HUD addresses discrimination in ______________

housing

FH Act prohibits discrimination for

Race, Color, Religion, Sex, Familia status, National Origin and Handicap

Race, Color, Religion, Sex, Familia status, National Origin and Handicap refers to

FH Act

FH Act prohibits discrimination for ___________, Color, Religion, Sex, Familia status, National Origin and Handicap

Race

FH Act prohibits discrimination for Race, ___________, Religion, Sex, Familia status, National Origin and Handicap

Color

FH Act prohibits discrimination for Race, Color, ___________, Sex, Familia status, National Origin and Handicap

Religion

FH Act prohibits discrimination for Race, Color, Religion, ___________, Familia status, National Origin and Handicap

Sex

FH Act prohibits discrimination for Race, Color, Religion, Sex, ___________, National Origin and Handicap

Familia status

FH Act prohibits discrimination for Race, Color, Religion, Sex, Familia status, ___________ and Handicap

National Origin

FH Act prohibits discrimination for Race, Color, Religion, Sex, Familia status, National Origin and ___________

Handicap

Handicap discrimination is prohibited in

FH Act

Familia status discrimination is prohibited in

FH Act

ECOA prohibits discrimination based on Age, Sex, Marital Status, Race, Religion, _________, National Origin, Receipt of Public Assistance

Color

ECOA prohibits discrimination based on Age, Sex, Marital Status, Race, Religion, Color, National Origin, Receipt of Public Assistance

Age

ECOA prohibits discrimination based on _________, Sex, Marital Status, Race, Religion, Color, National Origin, Receipt of Public Assistance

Sex

ECOA prohibits discrimination based on Age, Sex, _________, Race, Religion, Color, National Origin, Receipt of Public Assistance

Marital Status

ECOA prohibits discrimination based on Age, Sex, Marital Status, _________, Religion, Color, National Origin, Receipt of Public Assistance

Race

ECOA prohibits discrimination based on Age, Sex, Marital Status, Race, _________, Color, National Origin, Receipt of Public Assistance

Religion

ECOA prohibits discrimination based on Age, Sex, Marital Status, Race, Religion, Color, _________, Receipt of Public Assistance

National Origin

ECOA prohibits discrimination based on Age, Sex, Marital Status, Race, Religion, Color, National Origin, _________

Receipt of Public Assistance

Receipt of Public Assistance discrimination is prohibited by

ECOA

National Origin os prohibited by ___________and ___________

ECOA and FH Act

Marital Status discrimination is prohibited by __________

ECOA

Age discrimination is prohibited by ________________

ECOA

Skin color, race, religion and sex discrimination is prohibited by _______________ and _____________

ECOA and FH Act

Blockbusting is banned by

FH Act

Steering is banned by

FH Act

Redlining ois banned by

FH ACT

_____________ banned blockbusting, steering and redlining

FH Act

FH Act banned _____________, steering and redlining

blockbusting

FH Act banned blockbusting, _____________ and redlining

steering

FH Act banned blockbusting, steering and _____________

redlining

This agency enforces rules against blockbusting, steering and redlining

HUD

FINCEN stands for

Financial Crimes Enforcement Network

Financial Crimes Enforcement Network is aka

FINCEN

Financial Crimes Enforcement Network is regulated by _______

Department of the Treasury

FINCEN is regulated by

Department of Treasury

This requires companies to have a program to report Suspicious Activity Reports (SARS)

Financial Crimes Enforcement Network

a SARS is aka

Suspicious Activity Report

Suspicious Activity Reports are regulated by

Financial Crimes Enforcement Network FINCEN

FINCEN is regulates the report of _____________

Suspicious Activity Reports (SARS)

This agency complies Suspicious Activity Reports (SARS)

Department of Treaury

The Department of _____________complies Suspicious Activity Reports (SARS)

Treasury

GLBA is aka

Gramm, Leach Bliley Act

The Gramm, Leach Bliley Act is aka

GLBA

Regulation P is aka

Gramm, Leach Bliley Act

Gramm, Leach Bliley Act is Regulation ____

Regulation P is enforced by _______

CFPB

Gramm, Leach Bliley Act is enforced by

CFPB

___________ requires creditors to provide a privacy notice to customers giving them the right to opt out of having the information shared between creditors

GLBA

Regulation _______ requires creditors to provide a privacy notice to customers giving them the right to opt out of having the information shared between creditors

GLBA requires _______ to provide a privacy notice to _______ giving them the right to opt out of having the information shared between _______

creditors, customers, creditors

GLBA requires creditors to provide a privacy notice to customers giving them the r_______ of having the information shared between creditors

right to opt out

Regulation _______ requires _______ to provide a privacy notice to _______ giving them the right to opt out of having the information shared between _______

P, creditors, customers, creditors

This Act requires all mortgage companies to have a SAFEGUARD Rule to implement its provisions

GLBA

Regulation _______ requires all mortgage companies to have a SAFEGUARD Rule to implement its provisions

Regulation P requires all mortgage companies to have a ____________ Rule to implement its provisions

SAFEGUARD

GLBA requires all mortgage companies to have a ____________ Rule to implement its provisions

SAFEGUARD

SAFEGUARD rules are created by regulation _____

SAFEGUARD rules are created by the _______ Act

GLBA

the _______________ rule that requires mortgage brokers and lenders to have a policy that protects the privacy rights of its clients relating to access to sensitive information

SAFEGUARD

SAFEGUARD rule that requires mortgage brokers and lenders to have a policy that protects the _______ of its clients relating to access to _______

privacy rights, sensitive information

privacy rights, sensitive information are addressed in regulation ____

privacy rights, sensitive information are addressed in ______ Act

GLBA

Regulation ____ Covers pretexting, which relates to getting information through false means

_________ which relates to getting information through false means

pretexting

Whish act addresses pretexting?

GLBA

pretexting relates to getting ___________ through false means

information

pretexting relates to getting information through _____ means

false

GLBA Regulation P maximum fine is $________ per company

$100,000

GLBA Regulation P maximum fine is $________ per individual

$10,000

GLBA Regulation P maximum fine is $________ per individual and $___________ per company

$100,000, $10,000

GLBA Regulation ______ maximum fine is $10,000 per individual and $100,000 per company

_____ Regulation P maximum fine is $10,000 per individual and $100,000 per company

GLBA

GLBA violation prison term may be up to ______ years

Regulation P violation prison term may be up to _______ years

GLBA Regulation ______ maximum fine is ______ per individual and ________ per company and a prison term may be up to _______ years

P, $10,000, $100,000, 5

HDMA stands for ______

Home Mortgage Disclosure Act

The Home Mortgage Disclosure Act is aka

HDMA

Regulation C is the ______________

Home Mortgage Disclosure Act

The Home Mortgage Disclosure Act is regulation _______

Regulation ______ is HDMA Regulation ______ is GLBA Regulation ______ is FACTA Regulation ______ is ECOA

C P V B

Regulation C is ______ Regulation P is ______ Regulation V is ______ Regulation B is ______

HDMA GLBA FACTA ECOA

______ regulation C is designed to identify discrimination in lending

HDMA

HDMA regulation ______ is designed to identify discrimination in lending

______ regulation C requires depository institutions and non-depository lenders to report discrimination in lending

HDMA

HDMA regulation _____ requires depository institutions and non-depository lenders to report discrimination in lending

_______ regulation C deals with MSAs

HDMA

HDMA regulation ______ deals with MSAs

MSAs are aka

Metropolitan Statistical Area

HDMA regulation C requires depository institutions and non-depository lenders to report who have a home or branch office in a MSA on the preceding Dec 31st or receive applications related to property located in the same MSA the ______ year.

HDMA regulation C requires depository institutions and non-depository lenders to report who have a home or branch office in a MSA on the preceding ______ or receive applications related to property located in the same MSA the previous year.

Dec 31st

HDMA regulation C requires ______ and ______ lenders to report who have a home or branch office in a MSA on the preceding Dec 31st or receive applications related to property located in the same MSA the previous year.

depository institutions and non-depository

HDMA regulation ______ requires depository institutions and non-depository lenders to report who have a home or branch office in a MSA on the preceding Dec 31st or receive applications related to property located in the same MSA the previous year.

______ regulation C requires depository institutions and non-depository lenders to report who have a home or branch office in a MSA on the preceding Dec 31st or receive applications related to property located in the same MSA the previous year.

HDMA

______ regulation _____ requires companies that originates 25 closed-end or 200 open-end mortgages annually to report statistical information

HDMA, C

HDMA regulation C requires companies that originates ____ closed-end or _____ open-end mortgages annually to report statistical information

25, 200

HDMA regulation C requires companies that originates 25 ______ or 200 _____ mortgages annually to report statistical information

closed-end, open-end

T/F HDMA includes pre-qualifications

T/F HDMA does not includes pre-qualifications

HDMA regulation C requires ____ on application date, loan information, location and type of property, disposition of application approved or denied.

report

_______ regulation _____ requires report on application date, loan information, location and type of property, disposition of application approved or denied.

HDMA, C

HDMA regulation C requires report on application date, loan information, location and type of property, disposition of application _________ or denied.

approved

HDMA regulation C requires report on _________, loan information, location and type of property, disposition of application approved or denied.

application date

HDMA regulation C requires report on application date, _________, location and type of property, disposition of application approved or denied.

loan information

HDMA regulation C requires report on application date, loan information, _________ and type of, disposition of application approved or denied.

location and type of property

HDMA regulation C requires report on application date, loan information, location and type of property, _________ of a_________ approved or denied.

disposition of application

_________ regulation _________ requires report on applicants personal information including name, ethnicity, race, sex and income of borrower.

HDMA, C

HDMA regulation C requires report on _________ personal information including name, ethnicity, race, sex and income of borrower.

applicants

HDMA regulation C requires report on applicants personal information including _________, ethnicity, race, sex and income of borrower.

name

HDMA regulation C requires report on applicants personal information including name, _________, race, sex and income of borrower.

ethnicity

HDMA regulation C requires report on applicants personal information including name, ethnicity, _________, sex and income of borrower.

race

HDMA regulation C requires report on applicants personal information including name, ethnicity, race, _________ and income of borrower.

sex

HDMA regulation C requires report on applicants personal information including name, ethnicity, race, sex and _________.

income of borrower

_________ regulation _________ requires banks and lenders to upload data via the HDMA-LAR Loan Application Register by March 31st of the following year to CFPB.

HDMA, C

HDMA regulation C requires banks and lenders to upload data via the _________ Loan Application Register by March 31st of the following year to CFPB.

HDMA-LAR

HDMA regulation C requires banks and lenders to upload data via the HDMA-LAR _________ by March 31st of the following year to CFPB.

Loan Application Register

HDMA regulation C requires banks and lenders to upload data via the HDMA-LAR Loan Application Register by _________ of the following year to CFPB.

March 31st

HDMA-LAR stands for?

Home Mortgage Disclosure Act - Loan Application Register

The Home Mortgage Disclosure Act - Loan Application Register is due by ______ the following year to CFPB

March 1st

The Home Mortgage Disclosure Act - Loan Application Register is due by March 31st the following ____ to CFPB

year

The Home Mortgage Disclosure Act - Loan Application Register is due by March 31st the following year to ______.

CFPB

HOEPA stands for _________

Home Ownership Equity Protection Act

LAR is regulated by Reg _____

Home Ownership Equity Protection Act is aka

HOEPA

Home Ownership Equity Protection Act is enforced by

CFPB

HOEPA is enforced by ______________

CFPB

_________ establishes the thresholds for high cost loans which are subject to section 1026.32 of the Truth-In-Lending-Act, Regulation Z.

HOEPA

HOEPA establishes the thresholds for high _________ loans which are subject to section 1026.32 of the Truth-In-Lending-Act, Regulation Z.

cost

HOEPA establishes the thresholds for high cost loans which are subject to section _________ of the Truth-In-Lending-Act, Regulation Z.

1026.32

HOEPA establishes the thresholds for high cost loans which are subject to section 1026.32 of the _________, Regulation Z.

Truth-In-Lending-Act,

HOEPA establishes the thresholds for high cost loans which are subject to section 1026.32 of the Truth-In-Lending-Act, Regulation _________.

Regulation ______ is HDMA Regulation ______ is GLBA Regulation ______ is FACTA Regulation ______ is ECOA Regulation_______ is HOEPA

C P V B Z

Regulation C is ______ Regulation P is ______ Regulation V is ______ Regulation B is ______ Regulation Z is ______

HDMA GLBA FACTA ECOA TILA

1026.32 refers to

HOEPA

1026.32 refers to high _____ loans

cost

High cost loans are Section_____ of Regulation Z of the ________ Act

32, TILA

High _______ loans are Section 32 of Regulation ___ of the TILA Act

cost, Z

HOEPA is section _____

HOEPA section 10__.___ of Reg

26.32, Z

Addresses predatory lending

HOEPA

Section ___ addresses certain deceptive and unfair practices in home equity lending

_______ addresses certain deceptive and unfair practices in home equity lending

HOEPA

HOEPA section 32 excludes _______ and construction loans

reverse mortgages

HOEPA section 32 excludes reverse mortgages and _______ loans

construction loans

_______ section _______ excludes reverse mortgages and construction loans

HOEPA, 32

HOEPA Section _______ includes purchase money mortgages, refinances on primary property, closed-end equity primary loans, open-end primary HELOCS

HOEPA Section 32 includes _______ , refinances on primary property, closed-end equity primary loans, open-end primary HELOCS

purchase money mortgages

HOEPA Section 32 includes purchase money mortgages, _______ , closed-end equity primary loans, open-end primary HELOCS

refinances on primary property

HOEPA Section 32 includes purchase money mortgages, refinances on primary property, _______ , open-end primary HELOCS

closed-end equity primary loans

HOEPA Section 32 includes purchase money mortgages, refinances on primary property, closed-end equity primary loans, _______

open-end primary HELOCS

________ establishes thresholds on APR 6.5% above APOR for a first mortgage

HOEPA

HOEPA establishes thresholds on ________ 6.5% above APOR for a first mortgage

APR

HOEPA establishes thresholds on APR ________ % above APOR for a first mortgage

6.5%

HOEPA establishes thresholds on APR 6.5% above ________ for a first mortgage

APOR

HOEPA establishes thresholds on APR 6.5% above APOR for a ________ mortgage

first

HOEPA establishes thresholds on APR ________ % above APOR for a first mortgage less than $50,0000

8.5

HOEPA establishes thresholds on APR 8.5% above ________ for a first mortgage less than $50,0000

APOR

HOEPA establishes thresholds on APR 8.5% above APOR for a ________ mortgage less than $50,0000

first

HOEPA establishes thresholds on APR 8.5% above APOR for a first mortgage ________ than $50,0000

less

HOEPA establishes thresholds on APR 8.5% above APOR for a first mortgage less than ____________

$50,0000

HOEPA establishes thresholds on ______ 8.5% above APOR for a first mortgage less than $50,0000

APR

________ establishes thresholds on APR 8.5% above APOR for a first mortgage less than $50,0000

HOEPA

HOEPA establishes thresholds on APR ________ % above APOR for a junior lien

8.5

HOEPA establishes thresholds on APR 8.5% above __________ for a junior lien

APOR

HOEPA establishes thresholds on APR 8.5% above APOR for a ________

junior lien

_________ establishes thresholds on APR 8.5% above APOR for a junior lien

HOEPA

HOEPA Points and Fee Thresholds when P&F's are greater than ___% for loans greater or equal to $24,866 or greater than 8% for loans between $1,243 and $24,865

HOEPA Points and Fee Thresholds when P&F's are greater than 5% for loans greater or equal to $________ or greater than 8% for loans between $1,243 and $24,865

$24,866

HOEPA Points and Fee Thresholds when P&F's are greater than 5% for loans greater or equal to $24,866 or greater than ________% for loans between $1,243 and $24,865

HOEPA Points and Fee Thresholds when P&F's are greater than 5% for loans greater or equal to $24,866 or greater than 8% for loans between $________ and $24,865

1,243

HOEPA Points and Fee Thresholds when P&F's are greater than 5% for loans amounts greater or equal to $24,866 or greater than 8% for loans between $1,243 and $________

24,865

HOEPA _____ and _____ Thresholds when P&F's are greater than 5% for loans amount greater or equal to $24,866 or greater than 8% for loans between $1,243 and $________

Points and Fee, 24,865

HOEPA pre-payment penalty threshold: A transaction is a high-______ mortgage of the prepayment penalty is charged more than 36 months after closing and amount greater than 2% of the amount prepaid.

cost

HOEPA pre-payment penalty threshold: A transaction is a high-cost mortgage of the prepayment penalty is charged more than ______ months after closing and amount greater than 2% of the amount prepaid.

HOEPA pre-payment penalty threshold: A transaction is a high-cost mortgage of the prepayment penalty is charged more than 36 months after closing and amount ______ than 2% of the amount prepaid.

greater

HOEPA pre-payment penalty threshold: A transaction is a high-cost mortgage of the prepayment penalty is charged more than 36 months after closing and amount greater than ______% of the amount prepaid.

T/F HOEPA allows fees for modification

T/F Most payoff statements are banned

HOEPA late fees are limited to ___% of the past-due payment

T/F HOEPA allows for neg-am

T/F HOEPA allows for rate increases after default

T/F Contractors are barred from receiving direct payments from a HOEPA loan

T/F No refinancing a high-cost mortgage into another high-cost mortgage w/in 1 year of extending credit

T/F All HOEPA loans must meet ATR, Dodd-Frank requirements

A HOEPA borrower must receive notice, ___ biz days before closing, that they are/not obligated to sign the loan and can/can't cancel

3, are, can

HOEPA cannot allow a balloon term less than ____ years

HOEPA can/cannot allow a balloon term less than 5 years

cannot

HPML is aka

High Priced Mortgage Loans

High Priced Mortgage Loans aka

HPML

High Priced Mortgage Loans or HPML is part of _______ Regulation Z, 1026.35, known as Section 35

TILA

High Priced Mortgage Loans or HPML is part of TILA Regulation _______, 1026.35, known as Section 35

High Priced Mortgage Loans or HPML is part of TILA Regulation Z, 10_______.35, known as Section 35

High Priced Mortgage Loans or HPML is part of TILA Regulation Z, 1026._______, known as Section 35

High Priced Mortgage Loans or HPML is part of TILA Regulation Z, 1026.35, known as Section 3_______

High _______ Mortgage Loans or HPML is part of TILA Regulation Z, 1026.35, known as Section 35

Priced

High Priced Mortgage Loans or _______ is part of TILA Regulation Z, 1026.35, known as Section 35

HPML

HPML loans are enforced by

CFPB

HPML Section _______ includes purchase money mortgages, refinances on primary property, closed-end equity primary loans, open-end primary HELOCS

HPML Section 35 includes ____________, refinances on primary property, closed-end equity primary loans, open-end primary HELOCS

purchase money mortgages

HPML Section 35 includes purchase money mortgages, ____________, closed-end equity primary loans, open-end primary HELOCS

refinances on primary property

HPML Section 35 includes purchase money mortgages, refinances on primary property, ____________, open-end primary HELOCS

closed-end equity primary loans

HPML Section 35 includes purchase money mortgages, refinances on primary property, closed-end equity primary loans, ____________

open-end primary HELOCS

HPML Section 35 excludes ____________ and construction loans

reverse mortgages

HPML Section 35 excludes reverse mortgages and ____________

construction loans

Loans on principal properties are high-________ when the APR exceeds the APOR by 1.5% APR on first lien, 3.5% on second lien and 2.5% on a jumbo loan.

cost

Loans on principal properties are high-cost when the APR exceeds the APOR by ________% APR on first lien, 3.5% on second lien and 2.5% on a jumbo loan.

1.5

Loans on principal properties are high-cost when the APR exceeds the APOR by 1.5% APR on ________ lien, 3.5% on second lien and 2.5% on a jumbo loan.

first

Loans on principal properties are high-cost when the APR exceeds the APOR by 1.5% APR on first lien, ________% on second lien and 2.5% on a jumbo loan.

3.5

Loans on principal properties are high-cost when the APR exceeds the APOR by 1.5% APR on first lien, 3.5% on ________ lien and 2.5% on a jumbo loan.

second

Loans on principal properties are high-cost when the APR exceeds the APOR by 1.5% APR on first lien, 3.5% on second lien and ____% on a jumbo loan.

2.5

Loans on principal properties are high-cost when the APR exceeds the APOR by 1.5% APR on first lien, 3.5% on second lien and 2.5% on a jumbo loan.

jumbo loan

A creditor may/may not extend a HPML secured by a 1st lien on a principle dwelling UNLESS an escrow account is established before consummation.

may not

T/F HPML allows for escrow termination if the debt is paid and after 5 years

T/F HPML appraisal require interior and exterior appraisals

T/F HPML appraisals should only include exterior

T/F HPML appraisals are not required if the seller acquired the property in less than 90 days

HPML additional appraisals must be paid by the lender

HPML prepayment penalties are limited to first ____ years

HPA is aka

Homeowners Protection Act

Homeowners Protection Act is aka

HPA

The PMI Cancellation Act is aka

HPA Home Owners Protection Act

________ requires PMI to be automatically terminated when LTV reaches 78% of original value

HPA

HPA requires ________ to be automatically terminated when LTV reaches 78% of original value

PMI

HPA requires PMI to be automatically terminated when ________ reaches 78% of original value

LTV

HPA requires PMI to be automatically terminated when LTV reaches ________% of original value

HPA requires PMI to be automatically terminated when LTV reaches 78% of ________ value

original

_______ requires PMI to be terminated when borrower requests after loan has been paid down to 80% of the original value.

HPA

HPA requires _______ to be terminated when borrower requests after loan has been paid down to 80% of the original value.

PMI

HPA requires PMI to be terminated when _______ requests after loan has been paid down to 80% of the original value.

borrower

HPA requires PMI to be terminated when borrower requests after loan has been paid down to _______% of the original value.

HPA requires PMI to be terminated when borrower requests after loan has been paid down to 80% of the _______ value.

original

________ states termination of PMI requires a good payment history of 1) no 60 day lates in 24 months 2) No 30 day lates in 12 months, 3) Loan is current at time of termination.

HPA

HPA states termination of PMI requires a good payment history of 1) no ________ day lates in 24 months 2) No ________ day lates in 12 months, 3) Loan is current at time of termination.

60, 30

HPA states termination of PMI requires a good payment history of 1) no 60 day lates in ________ months 2) No 30 day lates in ________ months, 3) Loan is current at time of termination.

24, 12

HPA states termination of PMI requires a good payment history of 1) no 60 day lates in 24 months 2) No 30 day lates in 12 months, 3) Loan is ________ at time of termination.

current

Regulation ______ is HDMA Regulation ______ is GLBA Regulation ______ is FACTA Regulation ______ is ECOA Regulation_______ is HOEPA, HPML, TILA Regulation_______is MAP

C P V B Z N

Regulation C is ______ Regulation P is ______ Regulation V is ______ Regulation B is ______ Regulation Z is ______ Regulation N is ______ Regulation D is ______

HDMA GLBA FACTA ECOA HOEPA, HPML, TILA MAP AMPTA

Regulation C is ______ Regulation P is ______ Regulation V is ______ Regulation B is ______ Regulation Z is ______ Regulation N is ______ Regulation O is ______

HDMA GLBA FACTA ECOA HOEPA, HPML, TILA MAP MARS

C P V B Z N O D

Regulation ______ is HDMA Regulation ______ is GLBA Regulation ______ is FACTA Regulation ______ is ECOA Regulation_______ is HOEPA, HPML, TILA Regulation_______is MAP Regulation_______is MARS Regulation_______is RESPA Regulation_______is AMPTA

C P V B Z N O X D

Regulation C is ______ Regulation P is ______ Regulation V is ______ Regulation B is ______ Regulation Z is ______ Regulation N is ______ Regulation O is ______ Regulation X is ______

HDMA GLBA FACTA ECOA HOEPA, HPML, TILA MAP MARS RESPA

Regulation C is ______ Regulation P is ______ Regulation V is ______ Regulation B is ______ Regulation Z is ______ Regulation N is ______ Regulation O is ______ Regulation X is ______ Regulation H is ______ Regulation G is ______

HDMA GLBA FACTA ECOA HOEPA, HPML, TILA MAP MARS RESPA SAFE (non-depository) SAFE (depository)

C P V B Z N O X H G D

MAP is aka

Mortgage Acts and Practices

Mortgage Acts and Practices is aka

MAP

Mortgage Acts and Practices id Reg _____

Reg N is _____

MAP

_____, Reg ___, applies only to non-depository institutions, prohibits deceptive advertising in mortgage products and prohibits deceptive advertising in any form of media communications.

MAP, N

T/F MAP Mortgage Acts and Practices, Reg N, applies depository and non-depository institutions

MAP Mortgage Acts and Practices, Reg ___, applies only to ____________, prohibits ____________ advertising in mortgage products and prohibits deceptive advertising in any form of ____________ communications.

N, non-depository, deceptive, media

____________, Reg N, applies only to non-depository institutions, prohibits deceptive ____________ in mortgage products and prohibits deceptive advertising in any form of media ____________.

MAP Mortgage Acts and Practices, advertising, communications

MARS aka

Mortgage Assistance Relief Services

Mortgage Assistance Relief Services aka

MARS

MARS is Reg ____

Reg O is aka

MARS

MARS, Reg O is enforced by

CFPB

_________, Reg _________ bans advance fee on loan modifications and suggesting to a consumer not to make a scheduled payment is encouraging default.

MARS, O

MARS, Reg O bans _________e fee on loan _________ and suggesting to a consumer not to make a _________ payment is encouraging default.

advance, modifications, scheduled

MARS, Reg O bans advance _________ on _________ modifications and suggesting to a consumer not to make a scheduled payment is encouraging _________.

fee, loan, default

NFIP aka

National Flood Assistance Program

National Flood Assistance Program is aka

NFIP

National Flood Assistance Program is enforced by

FEMA, National Emergency Management Agency

_________ states structures must be located in a Special Flood Hazard Area (SHFA)

NFIP

NFIP states structures must be located in a _________ (SHFA)

Special Flood Hazard Area

SHFA is aka

Special Flood Hazard Area

_________ with a A or V designation require flood insurance

Zones

Zones with a _________ or V designation require flood insurance

Zones with a A or _________ designation require flood insurance

Zones with a A or V designation _________flood insurance

require

Zones with a A or V designation require _________

flood insurance

NFIP insurance contain a max coverage of $_____________

$250,000

________ insurance contain a max coverage of $250,000

NFIP

FCRA requires_____- and __________ for CR inquiries

permission and purpose

Zones with a A or V or _____ designation require _________

VE, flood insurance

VE requires __________

flood insurance

Zone ___ does not require flood insurance

Zone E does/does not require flood insurance

does not

RESPA is Reg ____

Reg X is ____

RESPA

RESPA is aka

Real Estate Procedure Act

Real Estate Procedure Act is aka

RESPA

RHS is ________

Rural Housing Service

RHS is regulated by the ______

USDA

Rural development loans to encourage growth in non-urban/suburban areas are ____

RHS loans

_________ loans allow 100% financing of rural area lending and 90% coverage for a lender in the event of a borrower's default.

RHS

RHS loans allow _________% financing of rural area lending and _________% coverage for a lender in the event of a borrower's default.

100, 90

RHS loans allow 100% _________ of _________ area lending and 90% _________ for a lender in the event of a borrower's default.

financing, rural, coverage

RHS loans allow 100% financing of _________ area lending and 90% coverage for a _________ in the event of a _________'s default.

rural, lender, borrower

SAFE is aka

Secure and Fair Enforcement for Mortgage Licensing Act

Secure and Fair Enforcement for Mortgage Licensing Act is aka

SAFE

SAFE is Reg ____ for non-depository lenders and Reg ___for depository lenders

H, G

____ is Reg H for non-depository lenders and Reg G for depository lenders

SAFE

SAFE is regulated by

CFPB

_____ Regulation ____ requires MLOs working for a depository institution be registered

SAFE, G

SAFE Regulation G requires MLOs working for a ____ institution be ____

depository, registered

_____ Regulation ____ requires MLOs working for a non-depository institution be licensed

SAFE, H

SAFE Regulation G requires MLOs working for a ____ institution be ____

non-depository, licensed

TILA is Reg _____

Reg Z is ______

TILA

The TILA/RESPA Integrated Disclosure Rule amends RESPA Sections _____ and _____

4, 5

The _____/______ Integrated Disclosure Rule amends RESPA Sections 4 and 5

TILA, RESPA

The TILA/RESPA Integrated Disclosure Rule amends ______ Sections _____ and _____

RESPA, 4, 5

TRID states, A change that makes the APR inaccurate by increasing it more than 1/8th for a regular loan after the initial disclosure will require a new _______day waiting period

_______ states, A change that makes the _______inaccurate by increasing it more than _______th for a regular loan after the initial disclosure will require a new 3 day waiting period

TRID, APR, 1/8

TRID states, A change that makes the APR inaccurate by _______ it more than _______th for a regular loan _______ the _______ disclosure will require a new _______day waiting period

increasing, 1/8, after, initial, 3

TRID states the closing disclosure must be provided to the applicant at least __ ______ biz days prior to the consummation

3 precise

TRID states the closing disclosure must be provided to the applicant at least 3 ______ biz days prior to the consummation

closing disclosure, precise

_____ states the closing disclosure must be provided to the applicant at least 3 ______ biz days prior to the consummation

TRID, precise

______ states A revised Loan Estimate must be delivered to the applicant no later than ______ precise biz days prior to closing

TRID, 4

TRID states A ______Loan Estimate must be delivered to the applicant no later than 4 ______ biz days prior to closing

revised, precise

______states a revised LE must be delivered to an applicant following a valid CIC no later than ______ general biz days

TRID, 3

TRID states a ______ LE must be delivered to an applicant following a valid ______ no later than 3 ______l biz days

revised, CIC, general

How much can the creditor or closing agent charge the borrower for preparing the CD?

ZERO

______ states the creditor or closing agent charge can/cannot charge the borrower for preparing the CD

TRID, cannot

The origination fee on the LE has a ______ tolerance

Zero

_______ states the _________ fee on a LE has a zero tolerance

TRID, ORIGINATION

The period to provide a refund for a tolerance violation on the LE is _____ days after consummation

______ states The period to provide a refund for a tolerance violation on the ______ is 60days after consummation

TRID, LE

The borrower has the right to review the CD _____day(s) before the consummation

Most 3rd party fees on a LE have a ___% tolerance

10%

____ states most ____ party fees on the LE have a 10% tolerance

TRID. 3rd,

The Loan Estimate has ___ pages

______ states the _______ has 3 pages

TRIS, LE

RESPA and TRID require that early disclosures be provided to the consumer no later than _____ ______business days after receiving the loan application unless the loan is denied w/in ____ days

3 general, 3

____ and ____ require that early disclosures be provided to the consumer no later than 3 general business days after receiving the loan application unless the loan is ____ w/in 3 days

RESPA, TRID, denied

The civil penalty for violating RESPA section 8 is _______ times the amount of money received

The _______ penalty for violating RESPA section _______ is 3times the amount of money received

civil, 8

Escrow collection and other requirements are covered under RESPA section _____

_____ collection and other requirements are covered under RESPA section 10

Escrow

An analysis of an escrow account must be done ______ a year

once

_______ section ______ states An analysis of an escrow account must be done once a year

RESPA, 10

______ section _____ addresses kickbacks and excessive fees

RESPA, 8

RESPA section 8 addresses _______ and _____

kickbacks, excessive fees

RESPA records must be retained for a period of ______ years

________ records must be retained for a period of 5 years

RESPA

The criminal penalty for violating RESPA is up to $______ and _____year(s) in prison

$10,000,1

The criminal penalty for violating ________ is up to $10,000 and 1year in prison

RESPA

The lender is allowed to collect a ______ month cushion reserve on an escrow account

________ section ______ states The lender is allowed to collect a 2 month cushion reserve on an escrow account

RESPA, 10

After an annual escrow analysis if there is a surplus of greater than ______ the lender has ______ days to send a check to the borrower for the surplus amount

$50, 30

________ section ______ After an annual escrow analysis if there is a surplus of greater than $50 the lender has 3 days to send a check to the borrower for the surplus amount

RESPA, 10

If there is a shortage in the escrow account, after the annual analysis, greater than one month escrow, the lender can add the amount to the total escrow amount and collect it over a ______ month period

________ section ______ If there is a shortage in the escrow account, after the annual analysis, greater than one month escrow, the lender can add the amount to the total escrow amount and collect it over a ______ month period

RESPA, 10, 12

The servicing disclosure requirements are covered under RESPA section ______

RESPA section 6 covers _______ _______

servicing disclosures

RESPA 4/5 ______ RESPA 6_______ RESPA 8________ RESPA 10________

TRID/RESPA integrated disclosures Servicing fees/kickbacks Escrows

TRID/RESPA integrated disclosures _____ Servicing RESPA _______ fees/kickbacks RESPA_____ Escrows RESPA______

4/5 6 8 10

For _______ days from the date of transfer the new servicer may not charge the borrower a late fee or report a negative rating to a CRA

________ Section _____For 60 days from the date of transfer the new servicer may not charge the borrower a late fee or report a negative rating to a ______

RESPA, 6, CRA

RESPA does not cover loans on properties that are _______ acres or more

A servicer must acknowledge a written request (QWR) from a borrower w/in _____ days and respond to the issue w/in _____ days

5/30

________ Section _____ A servicer must acknowledge a _______ from a borrower w/in 5 days and respond to the issue w/in 30 days

RESPA, 6, QWR

A servicer who transfers a loan to another servicer must notify the borrower in writing of the impeding transfer w/in _____ days prior to the transfer

________ Section _____ A servicer who transfers a loan to another servicer must notify the borrower in writing of the impeding transfer w/in 15 days ______ to the transfer

RESPA, 6, prior

A servicer receiving the transferred loan must notify the borrower in writing w/in ______days of receiving the transferred loan

________ Section _____ A servicer receiving the transferred loan must notify the borrower in writing _____ 15days of receiving the transferred loan

RESPA, 6, within

The criminal penalty for violating RegZ/TILA is up to a $_____fine and/or ______ year(s) in prison

$5,000/1

The _________ penalty for violating _______ Reg _____ is up to a $5,000 fine and/or 1 year in prison

criminal, TILA Reg Z

The individual civil penalty for violating TILA/Re Z is a minimum of $ _______ up to a maximum of $_______

$400,$4,000

The individual ____ penalty for violating ____ Reg ___ is a minimum of $ 400 up to a maximum of $4,000

civil, TILA, reg Z

If a person on title does not receive the notice of right to rescind, then the right to rescind the transaction extends to _____ years

If a borrower rescinds a loan, the lender has _______ days to return all monies paid in connection with the loan and cancel the security instrument

______ reg __ states If a borrower _______ a loan, the lender has 20 days to return all monies paid in connection with the loan and cancel the __________

TILA, Z, rescinds, security instrument

The record retention period for retaining the TILA disclosures is _______ years

The record retention period for retaining the ______ disclosures is 2 years

TILA

A borrower has until midnight of the ______ _______ business day to rescind a loan on a primary residence

3rd, precise

______ reg ____ states borrower has until midnight of the 3rd precise business day to ______ a loan on a _______ residence

TILA, Z, rescind, primary

The Truth-In-Lending Act Title _____ of the Consumer Protection Act

The ______ Act Title 1 of the _____ _______Act

Truth-in-Lending, Consumer Protection

If there is an _______ loan, the CHARM booklet AND the specific ARM program disclosure are considered early disclosures and are required to be delivered to the borrower w/in _____ business days of receiving the application

ARM, 3

If there is an ARM loan, the _______ booklet AND the specific ARM program disclosure are considered early disclosures and are required to be delivered to the borrower w/in _____ business days of receiving the application

CHARM, program disclosure, 3

As a general rule, the APR is considered accurate if it is not more than _____ of 1% above or below the previously disclosed APR on regular transactions

1/8th

______ reg _____ states As a general rule, the ___ is considered accurate if it is not more than 1/8th of 1% above or below the previously disclosed APR on _____transactions

TILA, Z, APR, regular

MDIA is ____

Mortgage Disclosure Improvement ACT

Mortgage Disclosure Improvement ACT is aka

MDIA

MDIA has a ___, ___, ___ rule. Only the CR fee may be charged before the applicant has received the GFE, the lender must wait ____days before closing the loan after the GFE has been delivered and if there has been an APR tolerance violation the lender must redisclose the TILS statement and wait ___ business days to close

3, 7, 3 7,3

______ has a 3, 7, 3 rule. Only the ___ fee may be charged before the applicant has received the GFE, the lender must wait 7 days before closing the loan after the GFE has been delivered and if there has been an ____ tolerance violation the lender must redisclose the TILA statement and wait 3 business days to close

MDIA, credit report, APR

The SAFE Act passing score is

75%

The SAFE Act pre-licensing education requirement includes ___hrs federal law, ___hrs, ____ethics, ____hrs non-trad lending products and ____hrs electives.

3,3, 2, 12 = 20

SAFE pre-licensing Exam 3 hrs ____, _____, 2 hrs ______ and 12 hours ____

federal law, ethics, non-trad lending products, electives

The SAFE Act annual renewal education requirements are ___hrs federal law, ___hrs ethics, ___hrs non-trad lending products, and ___hr elective

3,2,2,1

The SAFE Act annual renewal education requirements are 3 hrs ____, 2 hrs ____, 2 hrs ____, and 1 hr ____

federal law, ethics, non-trad lending products, elective

The SAFE national test has _____ questions and ___ are scored

120, 115

The regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $_____ per violation

$34,401

The SAFE Act defines a non-traditional mortgage as any product other than a _____year fixed rate mortgage

The FIAR consists of:

Index + margin

Mixing escrow funds with settlement funds is a major ethical violation known as:

comingling

A mortgage servicer may collect funds for the purpose of remitting escrow items and keep them in a collective account as long as a complete accounting is kept of all funds and no other funds for any other purpose are _____ into that account.

comingled

If an applicant exercises his or her right to rescind, all monies paid into the transaction must be refunded, even if they were spent on legitimate third-party settlement expenses such as an appraisal and/or a credit report. The lender must refund this money within ____ calendar days of the date of rescission.

At what LTV would a mortgage servicer be compelled to remove a customer’s MIP assuming that she had a good payment history?

never

MIP is associated with FHA loans and is automatically removed after ____ years assuming that the borrower’s initial down payment was ____% or more.

11, 10

The ____ requires a borrower paying PMI on a fixed-rate loan to receive all of the following: 1. amortization schedule, 2. Annual PMI removal reminder 3. Written notice at closing disclosing the terns of PMI removal

HPA

A mortgage originator must consider loan suitability when developing an application. What is something that she will consider in doing so?

DTI

The ___ requires mortgage servicers to automatically remove PMI on any loan designated as “high-risk” once the loan’s LTV reaches ____% and assuming that the loan is current.

HPA, 77

Under the HPA, a mortgage servicer must refund any “unearned” PMI premium within ___ days of its receipt.

Lending transactions originated through _______ are not subject to rights of rescission. Neither are loans to refinance the _____ loan through the ______ lender.

state agencies, original, original

Only_____-residential, _______ mortgage transactions contain a right of rescission.

primary, non-purchase

In a _______ transaction when the applicant agrees to ____-identify, he or she is asked to sub-categorize himself or herself based on his or her designation. Specifically, if an applicant voluntarily defines himself or herself as Native Hawaiian or Other Pacifica Islander, he or she will be asked to sub-categorize that identification as Native Hawaiian, Guamanian or Chamorro, Samoan, or Other Pacific Islander.

face-to-face, self

ARM ______ caps prevent the mortgage servicer from demanding a payment amount beyond the established payment cap regardless of the true payment due. It can often lead to negative amortization.

payment

Loan decisioning timeframes are established by _____

ECOA

Creditors are required to amend previously-reported information when a correction or removal is warranted. Knowingly reporting inaccurate information is a violation of _______.

FCRA

If a borrower is unable to continue remitting payments under his or her loan’s current terms, the lender might agree to _______ the loan in order to make it more palatable and avoid foreclosure. Ways in which the loan can be ________ include reducing the interest rate and/or extending the loan term.

modify, modified

______ Section ___ prohibits anything of value from being exchanged between actual or potential referral sources.

RESPA, 8

Even if an applicant is not expected to outlive the mortgage term, denying the application on solely that basis is an example of ageism and exemplifies a prohibited characteristic by definition of ________.

ECOA

SIVA is a loan scenario where, to qualify, the borrower simply states his or her _____ while their _______ are verified.

income, assets

Video conferencing is treated the same as a _______ application in terms of ______’s government monitoring disclosure requirements.

face-to-face, HMDA

The _________ on _______ Lending offered no cautionary advice regarding failing to offer multiple loan products. Instead, it focused on mortgage professional training, the oversight of third-party settlement providers, and fair compensation by discouraging product steering. In fact, the Federal Reserve acted against product steering when it ratified a final rule prohibiting it on April 1, 2011.

Statement, Subprime

The ________ on ___________ Mortgage Product Risks resulted from a joint study conducted by the _______ and the _________ which reviewed the mortgage industry and the products it was offering. It identified the potential problems associated with nontraditional mortgages and recommended stronger loan terms and underwriting standards, caution regarding the layering of risk when analyzing creditworthiness, and ways in which consumers needed to be protected from unscrupulous mortgage professionals. Nothing on subprime lending

Guidance, Nontraditional, CSBS, AARMR

When a loan contract contains a pre-payment penalty, it typically calculates a penalty based on an established percentage of the amount ______.

pre-paid

_________ is the process by which a loan matures. Based on the interest rate, loan term, and original mortgage amount, the P&I payment is established and, with each payment received, ______ of that payment is allocated against principal and ______ to interest.

Amortization, more, less

VOD stands for ______________ and may be used in lieu of or in conjunction with asset statements provided by the applicant.

verification of deposit

A Realtor calls an attorney and asks him to represent her client for free. In turn, the Realtor will refer other paying clients to that attorney. The attorney agrees. Who, if anyone, has violated RESPA?

Both, once fees are waived

Congress enacted ECOA in ______ in order to eliminate discriminatory treatment of credit applicants

1974

Anyone originating mortgages for a depository institution regulated by a federal banking regulator or for an institution regulated by the Farm Credit Administration is considered a _________ loan originator and is not required to be_________.

registered, licensed

T/F When allocating principal pre-payments against a fixed rate loan, the periodic payment amount due on the loan never changes.

12 CFR § 1026.26 mandates that if a consumer orally asks about the cost of the credit, the lender must state the _____. For closed-ended credit, he or she may also give a periodic or simple interest rate that is applied to an unpaid balance. If a lender cannot determine the APR for the specific closed-ended credit about which he or she is being asked, he or she may instead disclose the APR in a ______ transaction.

APR, sample

Making unlawful statements is a violation of ______and includes making oral or written statements that _______ prospective credit applicants from applying for a loan. Example: Although the loan originator could have explain to an adverse customer why fixing the derogatory credit concerns prior to applying might benefit him, he should never have discourage him from applying.

ECOA, discourage

________ mandates that, in order to access someone’s credit profile, the individual accessing it must first have ________ as well as a permissible _______ to do so. Completing a URLA constitutes both but, in cases where the credit is pulled without the completion of a URLA, the individual accessing the credit profile must be able to demonstrate having both.

FCRA, permission, purpose

_______ income tax returns are never used to determine an applicant’s income. Bank statements reflecting pay deposits, pay stubs, W-2 forms, 1099 forms, and federal income tax returns are some of the documents used to substantiate an applicant’s income.

state

If a primary mortgage experiences negative amortization, the ______ grows. If there is a lien in a subordinate position, the subordinate lienholder’s equity stake is ________ with each _________ to the primary loan’s balance.

balance, reduced, increase

To be ________, a mortgage loan must “_______” to Fannie Mae’s (FNMA’s) or Freddie Mac’s (FHLMC’s) underwriting parameters as well as Federal Housing Finance Agency (FHFA)-established annual loan limits. _____ loan parameters do not conform to FNMA or FHLMC underwriting parameters rendering ______ loans non-conforming.

conforming, “conform”, FHA, FHA

Higher-priced mortgage loans (HMPLs) are described in TILA Section ____. A mortgage is a higher-priced mortgage loan when it is secured by a borrower’s principal dwelling and has an APR exceeding the average prime offer rate (APOR) by ____% for first lien loans as of the interest rate lock date and _____% for subordinate lien loans or where the APR exceeds the average prime offer rate (APOR) by ____% in the case of first lien jumbo loans

35, 1.5, 3.5, 2.5

To calculate a bi-weekly interest-only payment on a bi-weekly loan, multiply the loan amount by the _______ (150,000 x 5% = 7,500) and divide the result by __.

interest rate, 26

The _______________ provides that the maximum amount of penalty for each act or omission is $25,000. Each violation or failure to comply with any directive or order of the state licensing authority is a separate and distinct violation or failure.

model state legislation

The model state legislation provides that the maximum amount of penalty for each act or omission is $________. Each violation or failure to comply with any directive or order of the state licensing authority is a separate and distinct violation or failure.

$25,000

When conducting a background check in response to an application for a mortgage license, personal references (are/are not) checked. Background checks involve criminal history, civil history, previous and current employment, and a credit report review.

are not

Background checks involve ______________, civil history, previous and current employment, and a credit report review.

criminal history

Background checks involve criminal history,____________, previous and current employment, and a credit report review.

civil history

Background checks involve criminal history, civil history, _____________, and a credit report review.

previous and current employment

Background checks involve criminal history, civil history, previous and current employment, and a ___________review.

credit report

_______________ involve criminal history, civil history, previous and current employment, and a credit report review.

Background checks

The HPA exempts FHA or VA loans from consideration because FHA loans utilize ___ not PMI and the VA utilizes a ______ and not PMI

MIP, funding fee

Loans containing LPMI involve the lender paying the _____ in exchange for the customer accepting a _______ interest rate.

PMI, higher

The ________ does not reference any indication of a pre-payment penalty as it is simply the document that establishes the lien.

Mortgage

A LE, CD, and ________ Note would all reference any pre-payment penalty applicable to the loan being originated.

Promissory

_______permits the waiver of a right to rescind in the presence of a bona fide ______l emergency as long as ____ parties to the transaction request the waiver in writing and clearly demonstrate the bona fide financial emergency.

TILA, financial, all

T/F Needing a loan to fund prior to the expiration of the rescission period in order to avoid a sheriff sale could easily constitute a bona fide financial emergency.

Regularly overdrawing one’s checking account may indicate problematic spending habits or insufficient income is a _____ flag

red

_______ financing involves an applicant applying for a first mortgage at 80% LTV as well as a _______ loan for the difference between the 80% first mortgage and their ______ payment.

Piggyback, secondary, down

A common example of _____________ is an 80/10/10 which involves an 80% first mortgage, a 10% second mortgage, and a 10% down payment.

Piggyback financing

Piggyback financing common example ___%\___%\___%

80/10/10

Lien-theory states utilize the _________ as their security instrument with default leading to a _________ foreclosure. Title-theory states utilize the _________ as their security instrument with default leading to a _________ foreclosure.

Mortgage, judicial, Deed-of-Trust (or Trust Deed), non-judicial

_________ states utilize the Mortgage as their security instrument with default leading to a_________ foreclosure. _________ states utilize the Deed-of-Trust (or Trust Deed) as their security instrument with default leading to a _________ foreclosure.

Lien-theory, judicial, Title-theory, non-judicial

In certain states, a spouse may have ownership rights to a property owned by his or her spouse even if his or her name is not on the _________ or when he or she is not obligated to the _________.

deed, debt

T/F In cases where an applicant is either married or separated, state marital laws may require the involvement of the spouse even if the spouse is not an applicant or listed on the title and deed.

Title ______ of the Housing and Economic Recovery Act establishes the ______ Act.

Five, SAFE

Housing and Economic Recovery Act aka

HERA

HERA aka

Housing and Economic Recovery Act

______ refers to the illegal practice of charging a borrower more for a third-party settlement fee than the settlement service provider charged and retaining the difference. ______ prohibits markups.

Marking up, RESPA

With a loan amount of $415,000, one point equals $4,150 (415,000 ÷ 100). If the borrower spent $12,450, she paid ____ points (12,450 ÷ 4,150 = ____).

A triggering term refers to any term used in an advertisement that triggers the need for ______ and ______ disclosure of the ____ print

clear, conspicuous, fine

A ______ term refers to any term used in an ______ that ______ the need for clear and conspicuous disclosure of the fine print.

triggering, advertisement , triggers

T/F TA thank-you note constitutes a thing of value

______allows anyone denied credit, due to credit-related reasons, the right to receive a free copy of their______. Consequently, if an application is denied due to credit issues, the creditor must provide the applicant with the ______ and ______ of the applicable credit repository.

FCRA, credit report, name and address

The reason for declination and a description of the credit are requirements of _________

ECOA

If an application is denied due to credit issues, disclosure of the credit score is required through _______

FACTA

_____ does not apply to business, agricultural, or organizational credit.

TILA

TILA does not apply to _____ , agricultural, or organizational credit.

business

TILA does not apply to business, _____ , or organizational credit.

agricultural

TILA does not apply to business, agricultural, or _____ credit.

organizational

The ___________________ Lending defines an individual as a credit risk if their credit history reflects two or more 30-day delinquencies within the prior 12-month period, one or more 60-day delinquencies within the prior 24 months, foreclosure, repossession, or charge-off within the prior 24 months, bankruptcy within the previous five years, having a credit score representing a high risk of default, or a debt-to-income ratio of 50% or higher.

Statement on Subprime Lending, 50

The Statement on __________ Lending defines an individual as a credit risk if their credit history reflects _____ or more 30-day delinquencies within the prior _____-month period,

Subprime, two, 12

The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects, _____ or more _____-day delinquencies within the prior _____ months,

one, 60, 24

The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects , foreclosure, repossession, or charge-off within the prior_____ months,

The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects bankruptcy within the previous _____ years,

The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects, having a _____ representing a high risk of _________

credit score, default

The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects a debt-to-income ratio of _____% or higher

50%

T/F For an organization to be considered a bona fide nonprofit organization, a state supervisory authority must determine acceptable percentage of profitability afforded to non-profit entities.

F There is no acceptable percentage of profitability afforded to non-profit entities.

______ strictly prohibits fee splitting unless the parties splitting the fee have performed enough work to earn the fee. Income earned must be commensurate with the amount of work performed.

RESPA

A ______ ______ ______is any authority whose activities make it eligible to be a member of the National Council of State Housing Agencies and that is chartered by a ______ to help meet the affordable housing needs of the residents of the state, supervised directly or indirectly by the ______government, and subject to audit and review by the ______ in which it operates.

housing finance agency, state, state, state

A housing finance agency is any authority whose activities make it eligible to be a member of the ______ ______ of ______ ______ ______and that is chartered by a state to help meet the affordable housing needs of the residents of the state, supervised directly or indirectly by the state government, and subject to audit and review by the state in which it operates.

National Council of State Housing Agencies

T/F The SAFE Act does not impose a specific fine for regulatory violations. Different violations carry different sanctions.

For a borrower to successfully petition their mortgage servicer for the removal of PMI once their loan reaches an 80% LTV, among other considerations, they must be able to demonstrate that they have a good payment history. A good payment history involves a ___-month review of the borrower’s mortgage payments during which there may be no ___-day late payments and no ___-day late payments within the most recent 12 months.

24, 60, 30

T/F A student loan is an example of closed-ended credit.

_____-ended lines of credit allow the account owner to repeatedly borrow and repay

Open

Open-ended lines of credit allow the account owner to repeatedly borrow and repay

borrow, repay

T/F Charging higher interest rates to someone with a lower credit score offsets risk and is therefore acceptable as long as the higher rate doesn’t violate other regulatory considerations and the borrower is still able to afford the payments.

In accordance with (12 USC § 5107(d); 12 CFR §1008.115), the _____ Act gives the Director of the _____ authority to determine whether a state has adopted laws that satisfy the _____ Act licensing requirements. Regulation _____establishes a procedure for the _____to follow if it makes a determination of noncompliance.

SAFE, CFPB, SAFE, H, CFPB

T/F Asking an appraiser if he would be willing to consider different comparables would be acceptable since he is free to agree to or not.

_____ requires that all parties to the transaction receive _____ copies of the right of rescission at _____.

TILA, two, closing

_____________ is allowed as long as the borrower qualifies at the higher rate, is aware of the higher-than-par rate and receives 100% of the above-par revenue.

Above-par pricing

CHARM stands for the

Consumer Handbook on Adjustable Rate Mortgage

Consumer Handbook on Adjustable Rate Mortgage aka

CHARM

___________ is required to be issued to an applicant within three business days of applying for a closed-ended ARM.

CHARM

CHARM is required to be issued to an applicant within _____ business days of applying for a closed-ended ARM.

No CRA may write a consumer report containing outdated financial information such as bankruptcies over____ years old and other negative information such as consumer account delinquencies, paid tax liens, and satisfied civil judgments that are more than _____years old unless the reporting relates to a credit transaction involving a principal amount of $150,000 or more.

10, 7, $150,000

No CRA may write a consumer report containing outdated financial information such as ___________ over ten years old and other negative information such as consumer account ___________, paid ___________, and satisfied ___________ that are more than seven years old unless the reporting relates to a credit transaction involving a principal amount of $150,000 or ___________.

bankruptcies, delinquencies, tax liens, civil judgments, more

A ________mortgage collects one half of a monthly payment every other week. Since there are _____ ________ payments in each calendar year, one extra monthly payment is collected and applied to principal annually thereby reducing the term of the loan

bi-weekly, 26 bi-weekly

________ involves the identification of multiple risk considerations throughout a particular mortgage. Solely stating one’s income to qualify for an ARM loan with an interest-only feature constitutes multiple ________ factors ________ together.

Risk layering, risk, layered

In the face of imminent foreclosure, a homeowner may simply elect to surrender his or her home by signing the deed over to the lender thereby avoiding a lengthy and costly foreclosure process.

deed-in-lieu of foreclosure

In the face of imminent foreclosure, deed-in-lieu of foreclosure is when a homeowner may simply elect to surrender his or her home by signing the _____ over to the lender thereby avoiding a lengthy and costly foreclosure process.

deed

When an existing law is amended or when new legislation is passed, Regulation____ addresses these circumstances by requiring that the Bureau be notified any time a state enacts legislation that affects its compliance with the SAFE Act.

T/F When an existing law is amended or when new legislation is passed, The CFPB may ask that the state submit evidence that its law is in compliance with the SAFE Act

T/T When an existing law is amended or when new legislation is passed, The CFPB may ask that the state for citations to relevant state laws and regulations

T/F When an existing law is amended or when new legislation is passed. The CFPB may NOT ask that the state for information on the state regulator’s supervisory processes, and for data on the state regulator’s investigations, examinations, and enforcement actions.

Loan decisioning timeframes are established by _____

ECOA

Knowingly reporting inaccurate information is a violation of ______.

FCRA

T/F If the ad is referring to a government loan program, the product which it describes must genuinely be a government loan or the program officially endorsed by the federal government.

If an interest rate is advertised, the ad must also contain the _____.

APR

Notice of Action Taken is an______mandate

ECOA

The Mortgage Servicing Disclosure Statement and Transfer of Servicing Disclosure are requirements of ______

RESPA

TILA mandates the issuance of the ____________t within three days of the application of all closed-ended ARMs

CHARM booklet

A________ underwriter must also be licensed as a mortgage loan originator in each state where the properties on which they work are located

contract

Who may naturally work as both an underwriter and a processor, may also act in the capacity of a mortgage loan originator.

Contract underwriter

The FHA, VA, and some ARMs are _____________ because they lack a due-on-demand or alienation clause.

assumable

The FHA, VA, and some ARMs are assumable because they lack a _____________ or alienation clause.

due-on-demand

The FHA, VA, and some ARMs are assumable because they lack a due-on-demand or _____________ clause.

alienation

The traditional conventional loan contains an ________ clause and is therefore not assumable.

alienation

The traditional conventional loan contains an alienation clause and is therefore not ______________.

assumable

The word “_______” may not be used in any advertisement in conjunction with describing an adjustable rate product since the recipient of the ad might conclude that the product being advertised is a _______-rate mortgage.

fixed, fixed

T/F The only exception in ads would be if the triggering words “adjustable rate mortgage” appeared in the ad prior to the word “fixed”.

________requires that all mortgage loan applications be formally decisioned within 30 days from the date of application

ECO

ECOA requires that all mortgage loan applications be formally decisioned within _______ days from the date of application

ECOA requires that all mortgage loan applications be formally decisioned within 30 days from the date of _______

application

______ states If, by the 30th day, the lender lacks the documentation permitting it to render a formal decision, it must issue the applicant a Notice of Incomplete Application itemizing all of the outstanding material and designating a specific timeframe by which the applicant must remit the material.

ECOA

ECOA states If, by the ______th day, the lender lacks the documentation permitting it to render a formal decision, it must issue the applicant a Notice of Incomplete Application itemizing all of the outstanding material and designating a specific timeframe by which the applicant must remit the material.

ECOA states If, by the 30th day, the lender lacks the documentation permitting it to render a formal decision, it must issue the applicant a ______ ___ ________ ________ itemizing all of the outstanding material and designating a specific timeframe by which the applicant must remit the material.

Notice of Incomplete Application

If an advertisement states the amount of any payment, the clear and conspicuous disclosure of which of the following would not be required?

APR

Disclosure of the _______ is only required upon advertising a particular interest rate not payment amount.

APR

Disclosure of the APR is only required upon advertising a particular _______ _______not payment amount.

interest rate

Disclosure of the APR is only required upon advertising a particular interest rate not _______ _______.

payment amount

If both encumbrances constitute 68% of the property’s value, and the sum of both encumbrances equate to $185,776, then _______ the total amount of encumbrances by the TLTV, will provide the property value (185,776 _______ 68% = 273,200).

dividing, ÷

Francis Formerrenter is closing on the purchase of her first single-family home which she intends to use as her primary residence. If the closing occurs on a Monday, on what day does her right of rescission end?

no right of rescission exists

________credit consists of a minimum collection of four credit accounts, often utilities or anything paid monthly, that would not normally appear on a traditional credit report.

Non-traditional

Non-traditional credit consists of a minimum collection of _____ credit accounts, often utilities or anything paid monthly, that would not normally appear on a traditional credit report.

four

Non-traditional credit requires at least one tradeline to be _____ related.

housing

___________ credit is often used when an applicant does not have sufficient credit to warrant a standard credit review.

Non-traditional

Loan suitability refers to the borrower’s __________ ___ ________the loan.

ability to repay

_______ _________ refers to the borrower’s ability to repay the loan.

Loan suitability

In considering whether or not a particular loan is suitable for a particular borrower, the lender must be confident that the borrower will be able to comfortably manage the ___________.

payments

In considering whether or not a particular loan is __________ for a particular borrower, the lender must be confident that the borrower will be able to comfortably manage the payments.

suitable

12 CFR §1026.19 requires lenders to disclose to ________ applicants pertinent information pertaining to the loan rate’s index, margin, and frequency of adjustments.

ARM

12 CFR §1026.19 requires lenders to disclose to ARM applicants pertinent information pertaining to the loan rate’s ________, margin, and frequency of adjustments.

index

12 CFR §1026.19 requires lenders to disclose to ARM applicants pertinent information pertaining to the loan rate’s index,________, and frequency of adjustments.

margin

12 CFR §1026.19 requires lenders to disclose to ARM applicants pertinent information pertaining to the loan rate’s index, margin, and ________ __ ________.

frequency of adjustments

T/F In addition to other pertinent facts, when an applicant applies for an adjustable rate mortgage, he must be given information pertaining to caps

Points are calculated based on the _____ _______

loan amount

T/F an immediate family member consists of adopted children

An ____________ family member consists of a spouse, child, sibling, or parent, grandparent or grandchild, stepparent, stepchildren or stepsiblings, and any individual who is a family member as a result of an adoptive relationship.

immediate

T/F immediate family member does not consists of grandparents

If a licensee’s license is revoked in a particular state, there is little/much likelihood that a license application will be approved in another state.

little

Although a mortgage loan originator must ask an applicant about his or her marital status, he or she may only ask the applicant if he or she is _________, separated, or unmarried.

married

Although a mortgage loan originator must ask an applicant about his or her marital status, he or she may only ask the applicant if he or she is married, _____________ or unmarried.

separated

Although a mortgage loan originator must ask an applicant about his or her marital status, he or she may only ask the applicant if he or she is married, separated, or_____________.

unmarried

T/F A mortgage loan originator must ask an applicant about his or her divorce

T/F The disclosure of alimony, child support, and separate maintenance income is never mandatory, court ordered or not

If an applicant opts to disclose alimony, child support, and separate maintenance income , the income must be ______ _____, a history of _________ established, and a _________ demonstrated.

court ordered, receipt, continuance

In fact, all applicants, aside from those applying for certain community lending products, state bond, or USDA loans must be made aware that the disclosure of alimony, child support, and separate maintenance income is ________________.

voluntary

If Paul earns social security income at $1,000 per month untaxed, the amount with which we can credit him becomes $1,250 (1,000 x _____%).

125%

If the applicant earns $36.50 per hour plus a 5% shift differential, his true hourly rate is $38.33 (36.50 x ______%)

105%

Unlike its fixed-rate counterpart, when principal pre-payments are allocated against an adjustable-rate mortgage balance, the _________ is never affected, the future payment amount is.

term

Unlike its fixed-rate counterpart, when principal pre-payments are allocated against an adjustable-rate mortgage balance, the term is never affected, the future _________ __________ is.

payment amount

Whenever an interest rate adjustment occurs, the mortgage servicer recalculates the next periodic ___________ based on the current balance, applicable interest rate, and remaining term.

payment

Whenever an interest rate adjustment occurs, the mortgage servicer recalculates the next periodic payment based on the_________ ________, applicable interest rate, and remaining term.

current balance

Whenever an interest rate adjustment occurs, the mortgage servicer recalculates the next periodic payment based on the current balance, applicable __________ _________, and remaining term.

interest rate

Whenever an interest rate adjustment occurs, the mortgage servicer recalculates the next periodic payment based on the current balance, applicable interest rate, and remaining _________.

term

______ requires that a revised closing disclosure be issued and an additional _______-day waiting period implemented if the ______ at the time of closing deviates from the ______ on the final CD by more than 0.125% on a regular transaction and 0.25% on an irregular transaction.

TRID, three, APR, A{R, CD

______ requires that a ______ closing disclosure be issued and an additional three-day waiting period implemented if the APR at the time of closing deviates from the APR on the final CD by more than _____% on a regular transaction and _______% on an irregular transaction.

TRID, revised, 0.125%, 0.25%

_______ requires that a revised closing disclosure be issued and an additional three-day waiting period implemented if the APR at the time of closing deviates from the APR on the final CD by more than 0.125% on a _____ transaction and 0.25% on an _______ transaction.

TRID, regular, irregular

______ requires that a revised closing disclosure be issued and an additional three-day waiting period implemented if the APR at the time of closing deviates from the APR on the final CD by more than _____% on an irregular transaction and ______% on a regular transaction

0.25, 0.125%

________ requires that a revised closing disclosure be issued and an additional three-day waiting period implemented if the APR at the time of closing deviates from the APR on the final CD by more than 0.25% on an_______ transaction and 0.125% on a_______ transaction

TRID, irregular, regular

____________ responsibility deems the mortgage professional responsible for looking out for the customer’s best interests.

Fiduciary

Fiduciary responsibility deems the mortgage professional responsible for looking out for the customer’s ________ _______.

best interest

YSP aka

yield spread premium

Regulation V, which encapsulates the _____, requires that ____ protect the privacy of consumers in a credit transaction.

FCRA, CRA

Regulation ___, which encapsulates the FCRA, requires that CRA’s protect the privacy of consumers in a credit transaction.

V, privacy

permission to access credit along with a permissible purpose is always required from anyone seeking to access someone’s credit data is regulated by ______ act

FCRA

permission to access credit along with a permissible purpose is always required from anyone seeking to access someone’s credit data is regulated by regulation ___

An ARM payment cap prevent the mortgage servicer from demanding a _________ amount beyond the established payment cap regardless of the true _________ due.

payment, payment

An ARM payment cap can often lead to _______ amortization.

negative

A mortgage professional should always trust their instincts and __________ __________.

common sense

A mortgage professional should always trust their ____________and common sense.

instincts

A customer closes on a 10/1 ARM with a ten-year interest-only term, after ten years when his loan becomes fully-amortizing, his balance will be at the ________ loan amount with ______ years remaining.

original, 20

A customer closes on a 10/1 ARM with a ten-year interest-only term, If the borrower pays the minimum payment billed, he will be paying only the interest due and will/will not reduce his principal balance.

will not

A _________ _________is an income stream earned from the repayment of a debt someone owes to the note holder. If a 12-consecutive-or-greater monthly payment history can be demonstrated along with evidence of a minimum three-year continuance, the note receivable may be considered as income.

note receivable

A note receivable is an income stream earned from the repayment of a debt someone owes to the note holder. If a ____-consecutive-or-greater monthly payment history can be demonstrated along with evidence of a minimum _____-year continuance, the note receivable may be considered as income.

12, three

In accordance with __________ reg ___, a mortgage applicant may choose or refuse to disclose his or her sex.

HMDA, C

In accordance with ______ reg ___, In the event that a mortgage applicant may choose or refuse to disclose his or her sex and the application has been conducted in a face-to-face capacity, the loan originator would have to document the applicant’s sex based on ______ ________ or surname.

HMDA, C, visual observation

When allocating principal pre-payments against a _____ rate loan, the periodic payment amount due on the loan never changes

fixed

When allocating principal pre-payments against a fixed rate loan, the periodic ________ amount due on the loan never changes

payment

In accordance with ______, reg ___, In the event that a mortgage applicant may choose or refuse to disclose his or her sex and the application has been conducted in a face-to-face capacity, the loan originator would have to document the applicant’s sex based on visual observation or ____________

HMDA, C, surname

The Tax Reform Act of 1986 eliminated the tax deductibility of interest paid through ____________ debt.

non-secured

The Tax Reform Act of 1986 ____________ the tax deductibility of interest paid through non-secured debt. As such, it stimulated home financing by causing people to ___________their unsecured debt into their _____________ thereby re-establishing interest deductibility.

eliminated, refinance, mortgages

In ________, reg ___, one of the definitions of a creditor is a lender that extends credit payable through a written agreement requiring repayment in more than ______ installments.

TILA, Z, four

If the business conducts business and is fully-operational on a Saturday, Saturday is considered a business day under the definition of “_________ business day.”

general

The ____ must be issued within three general business days of a mortgage application.

The LE must be issued within _______ general business days of a mortgage application.

three

The LE must be issued within three _________ business days of a mortgage application.

general

_______ rates are initial ARM rates that are more than 3% below the FIAR applicable at the time of rate lock.

Teaser

Teaser rates are initial ARM rates that are more than ____% below the FIAR applicable at the time of rate lock.

Teaser rates are initial ARM rates that are more than 3% _____the _____ applicable at the time of rate lock.

below, FIAR

An adjustable interest rate is ready to adjust. On the day that the new rate is determined, the index is 1.93% and the margin is 4. Assuming that everything falls within the acceptable cap structure, what is the new interest rate rounded to the nearest 1/8%? 5.875 or 6?

5.875 6-5.93=.07 / 5.93-5.875=.055

The ____ pieces of information that constitute a complete mortgage application, in accordance with ______, are: the applicant’s name, their social security number, their monthly income, the property’s address, the property’s estimated value or purchase price, and the loan amount.

six, TRID, name

The ____ pieces of information that constitute a complete mortgage application, in accordance with ______, are: the applicant’s name, their __________, their monthly income, the property’s address, the property’s estimated value or purchase price, and the loan amount.

six, TRID, social security number

The ____ pieces of information that constitute a complete mortgage application, in accordance with ______, are: the applicant’s name, their social security number, their monthly income, the __________, the property’s estimated value or purchase price, and the loan amount.

six, TRID, property’s address

six, TRID, estimated value

six, TRID, purchase price

six, TRID, loan amount

The ____ pieces of information that constitute a complete mortgage application, in accordance with ______, are: the applicant’s name, their social security number, their ______________, the property’s address, the property’s estimated value or purchase price, and the loan amount.

six, TRID, monthly income

T/F Even if the loan originator does not agree with the applicant, the applicant always and ultimately decides upon the mortgage program for which he or she applies.

The Mortgage or _______is the document on which anyone with an ownership interest in a property acknowledges their consent to the attachment of an enforceable lien to that property. The ____________is the document through which the borrower obligates himself or herself to the debt.

Deed-of-Trust, Promissory Note

___________concerns itself with the borrower’s current housing expense and their proposed housing expense.

Payment shock

Payment shock concerns itself with the borrower’s current ___________ expense and their proposed ___________ expense.

housing, housing

Payment shock concerns itself with the borrower’s ___________ housing expense and their _____________ housing expense.

current, proposed

The LE and CD disclose the _____________as being the cost of originating the loan expressed as an interest rate and the___________ as being the cost of originating the loan expressed as a dollar amount.

Annual Percentage Rate (APR), Finance Charge

____ (Reg __) prohibits misleading advertising practices.

TILA, Z

The ____________ , reg ___was implemented to protect the sanctity of individuals’ non-public, personal information.

Gramm-Leach-Bliley Act, P

____________, reg ___ requires companies to afford their customers “a reasonable opportunity” to opt out of information sharing.

Gramm-Leach-Bliley Act, P

Affording applicants access to credit applications is the role of the ____________ Reg ___

Equal Credit Opportunity Act, B

____________ , reg ___requires all financial institutions to protect customers’ and consumers’ information by implementing safeguards contained in the act’s Safeguards Rule.

Gramm-Leach-Bliley Act, P

____________ is a fraudulent activity associated with short sales.

Flopping

Flopping is a fraudulent activity associated with ____________.

short sales.

______________ is taking advantage of the people residing in specific, often socio-economically-disadvantaged areas, by offering them products and services at higher costs and with less benefits than other, less profitable options for which they may otherwise qualify.

Reverse redlining

______________ consists of avoiding doing business in certain geographic areas due to discriminatory preferences or because the area is potentially deemed to be less profitable.

Redlining

The Telemarketing Sales Rule requires the telephone numbers of all potential outbound sales call recipients to be scrubbed through the Do Not Call list every __ days.

Exceptions to Do Not Call scrubbed list consist of current customers, individuals who are not current customers but who were customers within the previous ___ months

Exceptions to Do Not Call list individuals who were never customers but who initiated an inquiry on their own within the previous ___ days.

The Telemarketing Sales Rule requires all outbound sales calls may only be placed between _:00 _.m. – _:00 _.m. of the call recipient’s time.

8:00 a.m. – 9:00 p.m

HDMA requires the loan originator must provide the applicant with the opportunity to define his or her _____, national origin, and sex.

race

HDMA requires the loan originator must provide the applicant with the opportunity to define his or her race, __________, and sex.

national origin

HDMA requires the loan originator must provide the applicant with the opportunity to define his or her race, national origin, and _______.

sex

_____, or specifically date of birth, along with marital status, is requested on the application but not under HMDA.

Age

Age, or specifically date of birth, along with marital status, is requested on the application but not under ________.

HMDA

Age, or specifically date of birth, along with _____ ______, is requested on the application but not under HMDA.

marital status

It is never acceptable to inquire about an individual’s intention to alter the size of their _______

family

T/F It is acceptable to inquire about an individual’s intention to alter the size of their family

is it ever acceptable to ask the applicant to disclose of what country he or she is a _________.

citizen

T/F It is acceptable to ask the applicant to disclose of what country he or she is a citizen.

By leaving a file on her desk and walking away, the loan processor compromised the customer’s security violates what rule?

Safeguard Rule

By leaving a file on her desk and walking away, the loan processor compromised the customer’s security violates what law?

Gramm-Leach-Bliley Act

By leaving a file on her desk and walking away, the loan processor compromised the customer’s security violates which reg?

Requiring the loan originator must provide the applicant with the opportunity to define his or her race, national origin, and sex is under which law?

HDMA

Requiring the loan originator must provide the applicant with the opportunity to define his or her race, national origin, and sex is under which regulation?

The _____(Title ___of the ____________Act) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services.

FCRA, VI, Consumer Credit Protection Act

The only individuals permitted access to a customer’s non-public, personal information are individuals with a business ______ to review it.

purpose

An applicant’s _____ may never be a part of any decision-making process and, aside from asking the questions through HMDA allowances, _____ may never be inquired about or discussed.

race, race

Under TRID, the Initial TIL and the GFE were combined to create the Loan Estimate and the Final TIL and HUD were combined to create the Closing Disclosure.

TRID, TIL, GFE, Loan Estimate, TIL, HUD, Closing Disclosure

_______ applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and foreclosure avoidance.

TRID

TRID applies to all types of mortgage financing with the exception of _____________, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and foreclosure avoidance.

home equity lines of credit

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, _____________________, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and foreclosure avoidance.

reverse mortgages

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, _______________, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and foreclosure avoidance.

mortgages not secured by real property

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, ______________, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and foreclosure avoidance.

loans made by persons not considered creditors

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, ___________________, property rehabilitation, energy efficiency, and foreclosure avoidance.

certain no-interest second mortgage loans used for down-payment assistance

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, ___________________, energy efficiency, and foreclosure avoidance.

property rehabilitation

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and foreclosure avoidance.

energy efficiency

TRID applies to all types of mortgage financing with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest second mortgage loans used for down-payment assistance, property rehabilitation, energy efficiency, and _______________________________.

foreclosure avoidance

TRID allows for the collection of only a ________________ fee prior to issuing a Loan Estimate.

credit report

TRID allows for the collection of only a ________________ fee prior to issuing a ____________________.

TRID, Loan Estimate

Whereas _____, Reg ___ is primarily concerned with identifying and preventing discrimination committed by organizations, ____ Reg ____ is charged with the responsibility of preventing discrimination by individuals.

HMDA, Reg C, ECOA Reg B

Whereas HMDA is primarily concerned with identifying and preventing discrimination committed by _________, ECOA is charged with the responsibility of preventing discrimination by ___________.

organizations, individuals

The _________________ mandates that, in order to access an individual’s credit, one must always have permission and a permissible purpose.

Fair Credit Reporting Act (FCRA)

FACTA Reg ___ resulted from an amendment to FCRA to address growing trends in _________________.

V, identity theft

Under RESPA, Reg ___, mortgage servicers may retain up to ______ months’ worth of escrow reserves to minimize the impact of remitting higher-than-anticipated escrow disbursements.

X, two

The _____ Reg ____ prohibits any loan originator working for a licensed entity to conduct origination activities on properties located in states and jurisdictions where the loan originator is not licensed.

SAFE Act Reg H

A RESPA violation can result in a prison sentence of up to ____ year(s) along with a fine of up to $_____.

one, $10,000

A _______, Reg ___ violation can result in a prison sentence of up to one year(s) along with a fine of up to $10,000.

RESPA, Reg X

According to the Code of Federal Regulations (CFR) 12 CFR 1026.36(g)(2), the licensed MLO’s_____ and _______must appear on the obligatory and security instruments along with the credit application and disclosures required by CFR § 1026.19 (e) and (f).

name, unique identifier

CFR refers to

Code of Federal Regulations

According to the Code of Federal Regulations (CFR) 12 CFR 1026.36(g)(2), the licensed MLO’s name and unique identifier must appear on the obligatory and ______________ along with the credit application and disclosures required by CFR § 1026.19 (e) and (f).

security instruments

According to the Code of Federal Regulations (CFR) 12 CFR 1026.36(g)(2), the licensed MLO’s name and unique identifier must appear on the obligatory and security instruments along with the _______________ and disclosures required by CFR § 1026.19 (e) and (f).

credit application

According to the Code of Federal Regulations (CFR) 12 CFR 1026.36(g)(2), the licensed MLO’s name and unique identifier must appear on the obligatory and security instruments along with the credit application and ________________ required by CFR § 1026.19 (e) and (f).

disclosures

A ___________________ is a loan that is purchased, “backed,” or securitized through a non-purely governmental entity

conventional loan

Fannie Mae and Freddie Mac will only purchase or securitize loans that are both ____________ and __________________.

conventional, conforming

___________ and _______________ will only purchase or securitize loans that are both conventional and conforming.

Fannie Mae, Freddie Mac

All conforming loans must “conform” to both Fannie Mae or Freddie Mac underwriting parameters and __________________-established annual loan limits.

Federal Housing Finance Agency (FHFA)

FHFA aka

Federal Housing Finance Agency

Federal Housing Finance Agency (FHFA) establishes ____________

annual loan limits

The ___________ , Reg ___________defines a traditional mortgage as a 30-year, fixed-rate, and amortizing loan.

SAFE Act, H

The SAFE Act , Reg H defines a traditional mortgage as a ___________, fixed-rate, and amortizing loan.

30-year

The SAFE Act , Reg H defines a traditional mortgage as a 30-year, ___________, and amortizing loan.

fixed-rate

The SAFE Act , Reg H defines a traditional mortgage as a 30-year, fixed-rate, and ___________ loan.

amortizing

A loan that exceeds the FHFA-established annual loan limit is known as a

Jumbo

What authority establishes JUMBO limits?

Federal Housing Finance Agency (FHFA)

A __________, one type of Reverse mortgage, is an FHA product known as the FHA 255.

HECM

A HECM, one type of __________, is an FHA product known as the FHA 255.

Reverse mortgage

A HECM, one type of Reverse mortgage, is an __________product known as the __________ __________.

FHA, FHA 255

The _____ prohibits pre-payment penalties on all _____ loan products.

FHA, FHA

T/F The FHA prohibits pre-payment penalties on all FHA loan products.

T/F The FHA allows pre-payment penalties on all FHA loan products.

FHLMC stands for the ________________ and is referred to as ________.

Federal Home Loan Mortgage Corporation, Freddie Mac

First-use/full-entitlement ____ purchase loans afford borrowers the opportunity for no down payment, regardless of the purchase price.

First-use/full-entitlement VA purchase loans afford borrowers the opportunity for ___% down payment, regardless of the purchase price.

First-use/full-entitlement VA purchase loans afford borrowers the opportunity for_____% financing, regardless of the purchase price.

100

All eligible VA borrowers must demonstrate their eligibility by producing a ____________________

Certificate of Eligibility (COE)

COE is aka

Certificate of Eligibility

To be considered for full entitlement, the COE must reflect an entitlement amount of $____________.

$36,000

The FHA allows for slightly higher DTI ratios than its conventional counterpart. FHA guidelines utilize ___/___ as ideal DTI ratios.

31/43

The ____ allows for slightly higher DTI ratios than its conventional counterpart. _____ guidelines utilize 31/43 as ideal DTI ratios.

FHA, FHA

The four _____ components are: frequency of change, index, margin, and CAPS.

ARM

The four ARM components are: _____ of _____, index, margin, and CAPS.

frequency of change

The four ARM components are: frequency of change, _____, margin, and CAPS.

index

The four ARM components are: frequency of change, index, _____, and CAPS.

margin

The four ARM components are: frequency of change, index, margin, and _____.

CAPS

A 7/1 adjustable rate mortgage is originated with a margin of 2%, an index of 3.5%, and a lifetime CAP of 5% applicable to the start rate of 2.75%. The initial CAP is 5 and the periodic CAP is 1. In year three, the index rises to 4.75%. What is the year-three rate considering the 4.75% index?

2.75%

Conventional financing guidelines currently limit seller’s concessions to ___% of the purchase price when the borrower’s down payment is less than 10%

Conventional financing guidelines currently limit seller’s concessions to ____% of the purchase price when the borrower’s down payment is equal to or greater than 10% but less than 25%,

Conventional financing guidelines currently limit seller’s concessions to___% when the borrower’s down payment is equal to or greater than 25%.

Conventional seller’s concessions are always limited to ____% of the purchase price when the intended use of the home being purchased is for investment purposes.

Conventional financing guidelines currently limit seller’s concessions to 3% of the purchase price when the borrower’s down payment is less than ____%

Conventional financing guidelines currently limit seller’s concessions to 6% of the purchase price when the borrower’s down payment is equal to or greater than ___% but less than ___%,

10, 25

Conventional financing guidelines currently limit seller’s concessions to9% when the borrower’s down payment is equal to or greater than ____%.

FHA financing finances the purchase of one-to-four-unit properties intended for use as ______________

primary residences

FHA financing finances the purchase of one-to-____-unit properties intended for use as primary residences

four

T/F Under certain circumstances, FHA will provide financing for mixed-use properties.

The only option for utilizing FHA financing for an investment property is through an FHA ______________ ______________.

streamline refinance

A FHA streamline refinance is only option for utilizing FHA financing for an _______________ property

investment

_____________ financing finances one-to-four-family, residential, real property intended for primary, secondary, or investment purposes.

Conventional

T/F Single-wide travel trailer would be ineligible conventional financing because it is not considered real property

The document establishing separation from the U.S. military is the ________.

DD214

DD214 establishing separation from the ______________

U.S. military

Effective January 1, 2023, the ______ defines the conventional conforming loan limit for single-family properties not located in higher-cost areas to be $______

FHFA, conventional, $726,200

Higher cost areas, as defined by the _____, are Alaska, Hawaii, Guam, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

FHFA

_________ is a no-income, no-asset Alt-A loan.

NINA

_____ loans often refer to loans with minimal-to-no documentation

Alt-A

___________ factors refer to underwriting considerations that exceed standard underwriting parameters

Compensating

The ________ compensating factors a loan application has, the easier it may be to overlook a weaker area.

weaker

The more compensating factors a loan application has, the easier it may be to overlook a __________ area.

FHA allows for a minimum down payment of ____% of the purchase price

3.5

FHA requires a minimum down payment of ____% for any loan with a representative credit score lower than 580

FHA requires a minimum down payment of 10% for any loan with a representative credit score lower than ____

580

Regardless of whether an individual is paid through W-2 wages or otherwise, if s/he has a ___% or greater ownership interest in the business for which s/he works, s/he is to be considered self-employed.

If an individual earns overtime, bonus, or commission income equal to or greater than ___% of his or her annual base salary, _____ year(s) most recent federal income tax returns must be reviewed to substantiate that income.

25, 2

Although the underwriter always retains discretion, if installment debt has____ or fewer months remaining, it may be ignored.

What is included in a housing expense ratio?

Any mandatory expense that is required to own a home

TILA mandates that, any time an interest rate is quoted, the _____ must also be provided.

APR

T/F TILA mandates that, any time an interest rate is quoted, the finance charge must also be provided.

F, only APR

An escrow waiver fee would appear on the _____________ and_________________

Loan Estimate, Closing Disclosure

__________ debt is systematic debt that does not typically appear on a credit report

Non-traditional

The Fannie Mae form _____ (Freddie Mac form ____) is the primary appraisal type used for residential financing.

1004, 70

1004 aka

Uniform Residential Appraisal Report (URAR

URAR aka

Uniform Residential Appraisal Report

A 3/1 ARM has a 2/2/5 cap structure. Assuming worst-case scenario, in what year would the interest rate reach its maximum?

If a 5/1 ARM contains a cap structure of 5/2/5 and a start rate of 3.5%, to what rate would the borrower’s interest rate increase if, at the first adjustment period, the index becomes 4 with a margin of 5?

8.5

T/F Unless it is a relocation or a VA loan, it makes no difference as to who appears as the primary borrower and who appears as the additional borrower

Fannie Mae Form ______ is the Residential Loan Application used for Reverse Mortgages.

1009

Fannie Mae Form 1009 is the Residential Loan Application used for ___________________.

Reverse Mortgages

Although ___________, Reg___, Section ___ specifically prohibits the offering or exchange of anything of value between actual or potential referral sources, an exception exists when the interaction includes an educational component and there is no self-promotion.

RESPA, X, 8

_____Reg ___Section ___ is violated any time an actual or potential referral source gives or extends an offer of something of value to an actual or potential referral source.

RESPA, X, 8

By leading the customer towards a more profitable loan product that is not necessarily in that customer’s best interests, the lender is guilty of __________.

steering

_________occurs any time a customer is encouraged to pursue a product or pricing structure that is advantageous to the lender but is not in the customer’s best interests.

steering

________ and ______ reg ___require that all mortgage customers be positively identified in order to prevent identity theft, money laundering, and the financing of terrorism.

The Patriot Act, FACTA reg V

_______________ occurs when unscrupulous mortgage professionals pray on the residents of specific geographic areas through predatory lending programs and services.

Reverse redlining

Conducting a _______ sale is selling one property to two different and unsuspecting fraud victims.

double

The seller collects money from both and usually absconds shortly thereafter. This is usually not discovered until one of the buyers attempts to file ownership documents into public record only to discover that the other buyer’s ownership documents had already been filed. This is a ____________________

double sale

The _______________ (_________) , Reg ____ requires that third-party foreclosure negotiators only collect their fee once the negotiation has been successfully completed has reduced the occurrence of foreclosure-related fraud.

Mortgage Assistance Relief Services Rule (MARS) , Reg O

The ___________________ (MARS), Reg ____ requires that third-party ____________ negotiators only collect their fee once the negotiation has been successfully completed has reduced the occurrence of _______________-related fraud.

Mortgage Assistance Relief Services Rule, O, foreclosure, foreclosure

The _________________, (Section ______ of ________, Reg ______) prohibits home contractors and builders from directly receiving loan proceeds when the purpose of the financing is for home improvement and the loan meets or exceeds the thresholds for classification as a ___________ loan.

Home Ownership and Equity Protection Act Section 32 of TILA, Reg Z, HOEPA

Exercising a policy that inadvertently and negatively impacts a particular class of persons is referred to as:

disparate impact

For example, imagine that, as a cost-minimizing measure, a mortgage company chooses to only communicate with its customers through e-mail. This might negatively impact a group of actual or potential customers who might not have access to e-mail due to the expenses associated with owning computer equipment and accessing the internet. This is ____________

disparate impact

______, Reg ____ classifies marital status as a prohibited characteristic which cannot be asked about or considered when originating a mortgage.

ECOA, B

________________ occurs when customers are lured through the promotion of products, rates, and fees that seem too good to be true. When they inquire, they’re often informed that the program is no longer available.

Bait and switch

____________ is roughly translated from Latin to English as, “Let the buyer beware.

Caveat emptor

Caveat emptor is roughly translated from Latin to English as, “__________________.

“Let the buyer beware."

The Gramm-Leach-Bliley Act , Reg ___ requires a financial institution to give each new customer “_________________” to opt out of information sharing once an account has been established.

P, a reasonable opportunity

The _______________, Reg P requires a financial institution to give each new customer “a reasonable opportunity” to opt out of information sharing once an account has been established.

Gramm-Leach-Bliley Act

T/F Attorneys who negotiate residential mortgage loans on behalf of clients as an ancillary matter to their representation also need not be licensed.

T/F Registered loan originators are loan originators who work for a depository institution regulated by a federal banking authority or the Farm Credit Administration. Registered loan originators do not need to be licensed.

Candidates seeking to become ___________must consent to a criminal background investigation, a credit report review, and submit fingerprints.

licensed

Candidates for mortgage licensure may not have any felony convictions within the previous ______ years or ______ if the felony conviction involved an act of fraud, dishonesty, breach of trust, or money laundering.

seven, never

Although pre-licensing education requires 20 hours of material, _____hours must surround federal law and regulations, _____ hours must surround ethics, and _____ hours must focus on lending standards for the non-traditional mortgage product marketplace. ____ hours are elective.

20, 3, 3, 2,12

pre-licensing education requires 20 hours of material, _____hours must surround federal law and regulations

pre-licensing education requires 20 hours of material, _____ hours must surround ethics

pre-licensing education requires 20 hours of material, _____ hours must focus on lending standards for the non-traditional mortgage product marketplace

pre-licensing education requires 20 hours of material, ____ are elective.

In order to renew one’s originators license, one must complete ________ hours of continuing education annually (plus any additional state-specific CE that may be required by the individual state), pay the applicable fees, and renew on or by ___________ to avoid a lapse.

eight, December 31st

All licensed loan originators must purchase a _____________ for each state in which they are actively licensed

surety bond

The ____________ is usually purchased and paid for by the employer on the employee’s behalf.

surety bond

The ___________ provides an insurance policy against which an individual injured by the loan originator’s neglect, incompetence, or wrongdoing may file a claim and seek restitution.

surety bond

T/F If a claim is ever filed or paid against a surety bond, the loan originator would not be permitted to originate again until a replacement surety bond was secured.

The potential criminal penalty for mortgage fraud is up to $_____________ and ___________in prison, or both

$1,000,000 , 30 years

According to Dodd-Frank, Mortgage loan compensation agreement records mut be retained for ___ years

According to Dodd-Frank, lenders are required to provide a copy of the appraisal prior to ___________days of closing

Dodd-Frank Act Title ____ regulates the mortgage industy

According to Dodd-Frank, the maximum loan term for a QM is

30 years

According to Dodd-Frank, the maximum points and fees for a $100,000 load or greater is___%

According to Dodd-Frank, the maximum time a creditor can hold NQM, HPML and QMs to receive Safe Harbor

36 months

According to Dodd-Frank, the minimum time a creditor must keeps a loan and not sell it to maintain QM status for small creditor QM and balloon QM is_____

3 years

HDMA requires data reporting by _______ the following year

March 1st

Violation of the Fair Housing Act could result it criminal penalties up to $_______ and _______in prison

$100,000, 1 year

According to _______ CRAs must address disputes in ____ days

FCRA, 30

Title VI of the Consumer Credit Protection Act is the _________

FCRA Fair Credit Reporting Act

The FCRA Fair Credit Reporting Act is part of the _________________________ Title____

Consumer Credit Protection Act, VI

Under FCRA Fair Credit Reporting Act, bankruptcies may be reported for ___ years and other satisfied derogatory credit for ___ years

10, 7

Under ___________ bankruptcies may be reported for ___ years and other satisfied derogatory credit for ___ years

FCRA Fair Credit Reporting Act, 10, 7

FCRA was permanently extended by the _________________ , Reg ____ in 2003

Fair and Accurate Credit Transaction Act (FACTA), V

According to the FCRA and Fair and Accurate Credit Transaction Act (FACTA), Reg V, A one phone call fraud alert request can include an alert on a credit file for _____ year and _____ years if a police report is filed and submitted to the CRA

1, 7

According to the FCRA and Fair and Accurate Credit Transaction Act (FACTA), Reg V, If a lender collects credit scores on a borrower, the lender discloses the scores to the borrower and must give ___ reasons for each score.

According to the FCRA and Fair and Accurate Credit Transaction Act (FACTA), Reg V, the range for credit scores are ______ - _______

300, 850

According to the FCRA and Fair and Accurate Credit Transaction Act (FACTA) Reg V, Payment history makes up ___% of a credit score

35%

According to the FCRA and Fair and Accurate Credit Transaction Act (FACTA) Reg V, The red flag identity identity theft program is a mandatory program and includes _____ red flag items created by the ______

26, FTC

The Equal Credit Opportunity Act (ECOA) Reg ____ is Title _______ of the ___________Act

B, VII, Consumer Credit Protection Act

Title VII of the Consumer Credit Protection Act is ________, Reg ____

ECOA, B

ECOA Reg ___ requires a notice of action taken w/in ______days of a counter offer that is not accepted.

B, 90

ECOA, Reg ___ requires a copy of an appraisal of the subject property w/in _____days prior to the loan closing and _____days after it is determined the loan will not close.

B, 3, 30

ECOA Reg ___, title ___ of the Consumer Credit Protection Act, record retention is ____ months

B, VII, 25

Liability for violating ECOA Reg __ could result in a penalty of up to $______ and a class action suit $________ and ____% of net worth whichever is _____

B, $10,000, $500,000, 1%, less

DTI guidelines for front/back conventional loans are ___/____

28/36

1 discount point = _____% of the loan

1% of the loan = _____discount point

1% of the _____ = _____discount point

loan, 1

________ basis points = ________ discount point

100, 1

DTI guidelines for front/back Conventional loans are ___/____

28/36

DTI guidelines for front/back VA loans are ___/____

41/41

41/41 are DTIs for ____ loans

28/36 are DTIs for ____ loans

Conventional

31/43 are DTIs for ____ loans

FHA

DTI guidelines for front/back FHA loans are ___/____

31/43

ARM rates are rounded to the nearest ____th

1/8

ARM that is fixed 2st 5 years and can change annually later is a __/__

5/1

A fully amortized 30 year loan would be based on payments in ____months and due in ___months

360, 360

A 30ys mortgage with a 15 year balloon would have payments based on _____months and would be due in _____months

360, 180

A bi-weekly payment plan has ___monthly payments a year

A temporary 2/1 buydown loan means that the note rate is reduced by ____% in yr 1 and ____% in yr 2

2%, 1%

Seasoned funds must be verified in the bank for ____ days or more

The IRS form to obtain a borrower's tax transcript is ____

4506T-c

The IRS form to obtain a borrower's tax return is ____

4506T

Non-taxable income, (i.e. social security) can be grossed up by ___% which is calculated by multiplying the Non-taxable monthly income by ____%

25%, 125%

If a debt/liability has no payment associated with the debt/liability, the underwriter will allocate ____% of the debt as qualifying payment.

Non-traditional credit is evaluated for the borrower's last ____months

A URLA, form _____ has ____ sections

1003, 10

VOEs cover the last __ years

VODs cover the most recent ____days

A VOR (verification of rental) and a VOM (verification of mortgage) covers the most recent ___ months

VOM aka

verification of rental

VOR aka

verification of mortgage

A limited cash-out refinance allows the borrower to get cash back, the lower of $_____ or ____%

$2,000, 2%

A Fannie Mae full interior and exterior appraisal form is a

1004

A Fannie Mae full exterior appraisal form is a ____ aka a _____

2055, drive-by

Maximum age for credit documentation is ____ days when a Fannie/Freddie promissory note is signed

120

Minimum FICO score for Fannie/Freddie

620

To qualify for Fannie/Freddie, income must meet the ___year continuance test

Income qualifying requires the verification of the most recent ____days

with 3 FICO scores, the ____ qualifies

middle

With 2 FICO scores, the ______ qualifies

lower

with ___ FICO score, never qualifies

A borrower can use ____% of a vested interest in a retirement account for reserves

100%

A borrower can use 100% of a stock portfolio for __________

reserves

A borrower can use ____% of a stock portfolio for reserves

100

A borrower can use 100% of a vested interest in a retirement account for __________

reserves

Fannie Mae requires insurance coverage equal to the ______ of _____% of the insurable value of the improvements as determined by the insurer or the unpaid principal balance as long as it equals _____% of the insurable value

lesser, 100%, 80%

Fannie Mae allows ___% of the face amount of the insurance policy as the deductible

If a borrower is using rental income to qualify and the amounts are not already included on the _________ only ___% of the actual rental income can be considered.

tax return, 75%

If a borrower is using rental income to qualify and the amounts are not already included on the _________ , the is a reduction of ___% for vacancy and maintenance

tax return, 25%

After a borrower closes on a principal residence, the have ____days to move in

Minimum age for a reverse mortgage

If a FHA borrower defaults, the lender will receive______% of the loss

100%

FHA allows _____% of closing funds to be gifted

100%

FHA minimum down payment is

3.5%

FHA maximum seller contribution is ____%

The most common FHA loan program id the Section _____ insured mortgage

203B

203B is a

FHA loan program

UMIP aka

upfront mortgage insurance premium

UMIP is ____% of the loan

1.75%

A borrower can get a prorated refund of UMIP for ____years if refinance from one FHA to another FHA

VA allows ____% financing

100%

In the event of default, the VA will guarantee up to ____% of $______

25%, $726,200

The VA upfront funding fee for a borrower using their entitlement for the 1st time putting down less than 5% is ____%

2.15%

In the event of default, the USDA will guarantee up to ____%

90%

USDA/RHS loans allows ____% financing

100%

USDA/RHS loans have income limits based on _____% of the US median income

115%

HPA regulates the elimination of PMI if a borrower has no ___lates in the last 24 months and no ____lates in the last 12 months.

60, 30

HPA allows PMI requests at ___% equity position and requires automatically at ____% of LTV

20%, 78%

The ______ is a fixed number set by the lender and is not subject to change. It represents the lender’s and investor’s operating costs and profit margin and varies from lender to lender.

margin

The ________________ was formed in ______ through the enactment of the ________________ and is now the government entity responsible for overseeing the daily operations of both Fannie Mae and Freddie Mac. Additionally, the FHFA sets the current conforming loan limits annually and determines areas across the country that are designated as “high-cost areas.”

Federal Housing Finance Agency, 2008, Housing and Economic Recovery Act

______ provisions in Section ____ require an escrow refund if an escrow analysis uncovers an overage of $____ or more.

RESPA, 10, $50

______ provisions in Section ____ Although a mortgage servicer may refund an overage of less than $___ if it chooses to, it may also elect to retain it in escrow to be absorbed by future shortages or added to future overages.

RESPA, 10, $50

“_________________” is a term that refers to the diligent matching of loan programs with the current financial circumstances of each customer.

Loan suitability

___________ property and ____________ refinances do not contain any rescission period. The loan would fund ______ after settlement.

Investment, second-home, immediately

An ARM loan has a 4% start rate and it is time for the first adjustment to be made. It has a periodic cap of 1% and a lifetime cap of 5%. Assuming worst-case scenario, what would the new rate be after the first move?

Strictly using the worst-case scenario, an ARM with a start rate of 4% and a periodic cap of 1% could move no higher than 5% on its first movement (4 + 1 = 5).

Referral fees of any kind and under any circumstances are prohibited by ______ Section ____.

RESPA Section 8

With VA financing, IRRRL stands for __________________________. It is often referred to as “streamline” or a “VA to VA.”

Interest Rate Reduction Refinance Loan

Interest Rate Reduction Refinance Loan, IRRRL aka as "_______" or "____to_____"

streamline, VA to VA

Five siblings have ownership rights to a property. If a refinance transaction affecting the property is subject to rescission, how many of these individuals must submit a rescission notice in order to void the loan?

Any one of the five

A “party to the transaction” refers to anyone with an ownership interest on the property being financed, meaning, Any one of them may/all of them must exercise this right to rescind successfully?

any one of them may

The only times one can refuse to complete or accept an application is when there is _____________, the applicant is mentally incompetent, or the applicant is below the age of 18.

suspicion of fraud

The only times one can refuse to complete or accept an application is when there is suspicion of fraud, the applicant is _______________, or the applicant is below the age of 18.

mentally incompetent

The only times one can refuse to complete or accept an application is when there is suspicion of fraud, the applicant is mentally incompetent, or the applicant is _________________.

below the age of 18

A ____________mortgage requires the borrower to make one large payment at the end of a loan term. This payment may also be referred to as a “call,” a “demand,” or a “bullet.” It often has a 30-year amortization but is typically due and payable in full in 5, 7, 10, or 15 years.

balloon

Which form of mortgage fraud results in much greater losses to the mortgage industry? Fraud for profit or fraud for housing?

Fraud for profit

Fraud for ________occurs commonly when a borrower misrepresents his or her qualifications to improve their chances of loan approval.

housing

Fraud for _________ often involves some conspiracy among several industry insiders.

profit

Some _____________ loans contain a conditional right to modify by which the borrower may request a modification no later than ____ days prior to the loan’s call date.

balloon, 45

Some balloon loans contain a ______________ by which the borrower may request a __________ no later than 45 days prior to the loan’s call date.

conditional right to modify, modification

As long as the loan is current and without any ___-day late payments within the most recent ______ months, as long as the borrower is living in the home, there are no other _____ associated with the property, and the new rate is no higher than __% above the current rate, the lender will allow borrowers whose balloon loans contain a conditional right to modify to, for a fee, remain in the loan for the remainder of the loan’s 30-year term without having to refinance or make a balloon payment.

30, 12, liens, 5%

T/F The state licensing agency is not authorized to close the business for any period of time.

In conducting an examination or investigation, a _____ licensing agency may, among other things, administer oaths and affirmations, ______ witnesses, as well as books and records, require the production of relevant documents, and _____ _______ to any documents and records of the person under investigation.

state, subpoena, control access

A ________ loan is a conventional loan that “conforms” to FNMA’s and/or Freddie Mac’s __________ parameters as well as to FHFA-established annual loan limits.

conforming, underwriting, limits

A conforming loan is a _______loan that “conforms” to ____’s and/or _______’s underwriting parameters as well as to _____-established annual loan limits.

conventional, FNMA's, Freddie Mac’s, FHFA

RESPA Section 10 deals with __________

escrow accounts

RESPA Section ___ requires that the maximum amount of deposits collected in escrow cannot exceed ____ of the estimated total annual disbursements.

10, 1/6, annual

RESPA Section ___ states the servicer is prevented from overcharging the borrower by any more than ___ months total (which is simply used as a cushion for fluctuations).

10, 2

While some state regulators will allow for a “late renewal,” after ____________ the license is expired. Therefore, the originator is technically unlicensed and may not continue to engage in any activities that require a license to conduct business.

December 31st, unlicensed

____________ states utilize the Mortgage as a security instrument while ____________ states utilize the Deed-of-Trust.

Lien-theory, title-theory

Lien-theory states utilize the ____________ as a security instrument while title-theory states utilize the ____________.

Mortgage, Deed-of-Trust

_____, reg ___ requires that the borrower knows the status of the loan within ____days of application. This includes letting the borrower know, within ____ days, that the application needs to be completed in order to further consider his or her file.

ECOA, B, 30, 30

The ____________ Act of ____________ (____________ ) Reg ____________ amended the ____________ . Therefore, its regulatory oversight is the same as the ____________ , which means that the ____________ is responsible for its oversight and enforcement.

The Fair and Accurate Credit Transactions Act, 2003, V, FCRA, FCRA, FTC

The ______ Title ___ of the __________________was enacted in ______ from to protect the consumer in any transaction involving the use of credit reports. It is meant to govern the accuracy, fairness, and privacy of a consumer’s information when it is assembled for the purposes of credit evaluation.

FCRA, VI, Consumer Credit Protection Act, 1970, accuracy, fairness, privacy

Section 32 of Regulation Z (TILA) deals with added provisions and protections that are required if a loan trips one or both of the thresholds: either a “__________ and ________” threshold or an “APR” threshold.

points and fees

Section 32 of Regulation Z (TILA) deals with added provisions and protections that are required if a loan trips one or both of the thresholds: either a “points and fees” threshold or an “_____” threshold.

APR

______ Section __ of Regulation _ (______) deals with added provisions and protections that are required if a loan trips one or both of the thresholds: either a “points and fees” threshold or an “APR” threshold.

HOEPA, 32, Z, TILA

A b________ mortgage payment plan is a ________strategy used to essentially make one “extra” payment per year, by applying one-half of a monthly payment every two weeks thus making it possible to pay off a typical 30-year loan in as few as 23 – 24 1/2 years.

bi-weekly, prepayment

A bi-weekly mortgage payment plan is a prepayment strategy used to essentially make one “_____” payment per year, by applying ______ of a monthly payment every ____ weeks thus making it possible to pay off a typical 30-year loan in as few as 23 – 24 1/2 years.

one, one-half, two

The ___________ (_______-end DTI) is calculated by dividing the sum total of all of the monthly equivalencies of all mandatory costs associated with owning the property by the borrowers’ gross monthly _________.

housing expense ratio, front, income

“The __________” as it is generally referred to, addresses concerns that borrowers typically don’t understand about the features and risks of many __________t-only products or that payment- __________ products often result in __________ amortization. Other __________ ARMs and fixed-rate loans have also come under scrutiny because of the use of __________-documentation programs.

Guidance, interest, option, negative, nontraditional, reduced

Borrowers earning certain ________ income are permitted to “______” earnings by ___% since W-2 income is allowed to be considered at the gross (pre-taxed) amount paid.

non-taxed, gross-up, 25

In having oversight and supervisory authority over loan originators, a _________________ must participate in the NMLS, conduct background checks, and write rules and regulations.

state licensing agency

T/F The housing bubble bursting had nothing to do with unethical practices. It had everything to do with the standard economic principals of supply and demand. As demand diminished supply increased or stabilized driving home prices down.

The ________________________ (or ________) is the centralized system meant to streamline the licensing process and help prevent mortgage fraud by publicizing the acts of unscrupulous professionals.

Nationwide Mortgage Licensing System & Registry (or NMLSR)

_________ ARMs typically contain a ___________ option through which, between the loan’s second and fifth year, the borrower can __________the existing ARM to a fixed-rate loan, at market pricing plus a small margin, for a small fee and without having to refinance.

Standard, conversion, convert, refinance

A borrower is required to bring a minimum down payment of 3.5% to an FHA closing with a FICO score of __________ or greater

580

The FHA afforded mortgage lending a jumpstart during the Great Depression by insuring the full value of mortgages for qualified borrowers. By ___________ these loans, the FHA eliminated the risk of ______________ to lenders, thereby encouraging lenders to make new loans.

insuring, foreclosure

The form lenders use to report HMDA data is called the ___________________ (_____).

Loan Application Register (LAR).

A state-licensed loan originator who fails to maintain a valid license for a period of ______ years or longer must retake the licensing test. However, any time during that five-year period in which the individual was acting as a ____________ loan originator is not included when determining whether or not the licensing test must be retaken.

five, registered

As long as all applicants are charged the application fee regardless of whether or not they close on a loan, a lender (does/does not) have to include its application fee in the APR.

does not

Current FHA guidelines mandate life-of-loan MIP when the borrower’s initial down payment is ____% or less, regardless if 11 years of good payment history have passed

10%

The NMLS requires, as a federal minimum, at least _____ hours of ethics training within the total _______ hours of education required for continuing education.

two, eight

There are ______ types of reverse mortgage loans. They include single purpose reverse mortgages, ___________________, and proprietary mortgages.

three, home equity conversion mortgages (HECMs)

There are ______ types of reverse mortgage loans. They include ___________________ mortgages, home equity conversion mortgages (HECMs), and proprietary mortgages.

three, single purpose

There are ______ types of reverse mortgage loans. They include single purpose reverse mortgages, home equity conversion mortgages (HECMs), and ___________________ mortgages.

three, proprietary

The _________________ approach to appraisals is most commonly used for residential properties within an area that has recent sales data to analyze for comparison.

sales comparison

The ____ mandates that, if a fixed-rate loan being originated contains PMI, the lender must provide the customer with an amortization schedule ____ closing.

HPA, at

The ______ is responsible for reviewing the terms of the loan with the borrower but not to explain any loan terms in too great a detail

closer

Mortgage brokers sometimes engage in ____________ which allows them to, in theory, be a lender on a loan and close in their own name. Once the loan closes, it is immediately sold and assigned to another entity.

table-funding

The abbreviation FHA stands for the F____________________. It was created in ________ with the implementation of the __________________.

Federal Housing Administration, 1934, Federal Housing Act

______ requires action from a creditor if a self-test shows “_________________” that a violation has occurred. Taking corrective action (is/is not) an admission of guilt.

ECOA, it is more likely than not, is not

In a ___________ transaction when the party selling the property provides all or part of the financing, the loan is referred to as a s____________ or ____________ mortgage.

purchase, seller carry-back, take-back mortgage

All criminal history information must be provided by the state’s ___________ to the state officials responsible for regulating state-licensed loan originators to the extent criminal history background checks are required under the loan originator licensing laws of the state. The FBI is not a state agency.

Attorney General

The GLB Act covers “___________ personal information.” This does not include information that is readily available to the public through court records, phone books, land records, public record searches, and Freedom of Information/Privacy Act requests.

non-public

Warehouse lenders often use _____________ in the agreements with brokers to assure themselves some protection against fraudulent activity during the loan process. If fraud or faulty underwriting is uncovered, the originating lender could be required to _______________ from the investors.

buyback provisions, buy the loan back

The ____________ (_________) was installed after a legislative merger between HUD and the OFHEO as the “conservator” of Fannie and Freddie. This means the _______ is responsible for the daily operations of both ______s.

Federal Housing Finance Agency (FHFA), FHFA, GSE

The lender is only held to the ___% tolerance in fees regarding settlement service providers if the _______ chooses one identified by the _______ . If the _______ decides to use his or her own choice, the _______ is not held to the ____% standard.

10, borrower, lender, borrower, lender, 10

_______________ requires the disclosure of the _______________, the HUD Home Loan Toolkit, and the Mortgage Servicing Disclosure Statement within _______________days of a purchase loan _______________

RESPA, LE, three, application

_______________ requires the disclosure of the LE, the _______________, and the Mortgage Servicing Disclosure Statement within _______________ days of a purchase loan_______________

RESPA, HUD Home Loan Toolkit, three, application

_______________ requires the disclosure of the LE, the HUD Home Loan Toolkit, and the _______________ within _______________ days of a purchase loan _______________

RESPA, Mortgage Servicing Disclosure Statement, three, application

CHARM is only issued, under _________, when an applicant applies for a third_-ended ARM

TILA, closed

________ is only issued in the presence of a referral to an affiliated or associated ________-party service provider.

ABAD, third

______________________ _______________is only issued in the presence of a servicing transfer

Servicing Transfer Statement

The right of rescission utilizes the definition of “__________business day.”

precise

The ___________ allows the use of electronic records if the consumer has affirmatively consented to such use and has not withdrawn such consent.

E-Sign Act

T/F The Homeowner’s Protection Act is meant to facilitate the cancellation of private mortgage insurance. “Lender paid” mortgage insurance (which normally is in the form of a higher note rate) is not covered by the HPA

RESPA requires that an ___________________be used to describe any relationships between service providers that are affiliated in some way. Among other things, the _________ must state that the borrower cannot be required to use this third-party servicer (unless that party is an attorney, tax search agent, flood cert agent, appraiser, or credit reporting agency).

Affiliated Business Arrangement Disclosure, ABAD,

An ARM has a 6% start rate and is locked for three years. Its adjustment caps are set at 2/1/5. Assuming worst-case scenario, in what year would this loan reach its rate ceiling?

The ARM starts at 6% and is locked for three years. In the 4th year, the initial rate cap (of 2%) allows it to move to 8%. In the 5th year, the periodic rate cap (of 1%) allows it to move to 9%. In the 6th year, again the periodic rate cap limits movement to no more than 10%. Finally, in the 7th year, the loan would reach its rate ceiling of 11%.

A __________ agreement allows the borrower to choose when he or she wants to lock the loan. This type of agreement can allow _________ and _________ to rise and fall with the market, or it can lock the rate but let the points paid for that rate rise and fall based on market conditions.

float, interest rates, points

The sum of the surety bond must be maintained in an amount that reflects the ___________ of loans originated.

dollar value

_________ is a term that totals all claims (mortgages or liens) against a property that may affect the ability to transfer ownership of the property.

Encumbrance

Real estate broker fees (are/are not) a cost of the financing paid for by the borrower or seller. Consequently, they (are/are not) disclosed on the LE.

are not, are not

“No Doc” and “Low Doc” loans have all but disappeared in the market. In the nontraditional mortgage boom, the SISA, SIVA, and NINA were commonly used to help borrowers qualify for loans in circumstances when they couldn’t quite otherwise.

SISA, SIVA, NINA

Discouraging someone from applying due to the quality of their credit and not their score based on an across-the-board policy, however, is a violation of __________.

ECOA

A licensed mortgage loan originator may work as an independent contractor and earn commissions from (either/both) a lender or a mortgage broker business.

either

An MLO may only work or be associated with ______ lender or ______ mortgage broker business at the same time.

one, one

Only a__________lender may service a loan.

licensed

A lender (may/may not) compensate an individual working for a brokerage directly.

may not

T/F The lender may only compensate through the licensed mortgage broker business.

What would the interest rate increase to in year two through a 1/1 ARM under the following conditions? CAPs are 2/6, starting interest rate = 4.5%, margin = 2.5%, initial SOFR = 2%, year 2 SOFR = 4.25%?

Index + margin = FIAR. The start 4.5%. In year two, the index rises to 4.25% and the margin is constant at 2.5%. Without CAPs, the rate would rise to 6.75%. However, the CAP prevents the rate from adjusting by more than 2% in any period. Therefore, the rate is capped at 6.5% for year two.

A _______________ determines the exact boundaries of a tract of land using specific linear and angular measurements.

survey

_____________ shows all dwellings and permanent improvements on the tract, along with setback lines, easements, and any encroachments.

survey

Under BSA/AML, a CIP is:

customer identification program

All financial companies must have a forma ________________________in place to ensure that they are thoroughly and accurately identifying their customers and ensuring that they are who they claim they are.

customer identification program

Although everything is taken into consideration, even if an account is in solid standing, a late payment will (always/never) have an adverse effect on the individual’s overall credit profile.

always

_______________transactions are fixed rate products. ________________transactions are adjustable rate products

regular, irregular

regular transactions are _____________ rate products, irregular transactions are ____________ rate products

fixed, adjustable

APR cannot exceed _/_% above the APOR for regular transactions

1/8

APR cannot exceed _/_% above the APOR for irregular transactions

1/4

A new cost disclosure must be provided within ___ business days of discovering the annual percentage rate (APR) has changed by more than 1/__% from the APR disclosed on the previously-issued Closing Disclosure when the transaction is not irregular.

3, 8

3, 4

Homes with mortgages from federally-regulated or insured lenders in high-risk flood areas designated with the letters “A” or “V” or “__” are required to have flood insurance.

Homes with mortgages from federally-regulated or insured lenders in high-risk flood areas designated with the letters “A” or “__flood,” or “VE” are required to have flood insurance.

Homes with mortgages from federally-regulated or insured lenders in high-risk _________ areas designated with the letters “__” or “V” or “VE” are required to have _________insurance.

flood, A, flood

The _________________________ (NFIP) provides flood insurance which can be purchased through most leading insurance companies. Rates are set and do not differ from company to company or agent to agent.

federally-insured National Flood Insurance Program

T/F Homeowner’s insurance covers loss from floods

The Homeowner’s Protection Act requires the lender or servicer to notify the borrower of their rights at __________, annually, and upon termination of PMI.

loan closing

The CFPB now has the authority to review any state’s procedures. This backup agency (does/does not) apply directly to buyers, mortgage companies, or sellers.

does not

The _____ is the backup regulatory agency that enforces the SAFE Act for ____________

CFPB, loan originators

The CFPB is the backup regulatory agency that enforces the __________ Act for loan originators.

SAFE

If an MLO is earning compensation from the lender, she may also earn compensation from:

nobody

The _____________________Rule prohibits mortgage loan originators from earning income from multiple sources.

Loan Originator Compensation

All deeds must reference some ___________ – something of value that induces a party to join in a contract. ______________ can be expressed in valuable or good terms.

consideration, Consideration

All _____________ must reference some consideration – something of value that induces a party to join in a contract. Consideration can be expressed in valuable or good terms.

deeds

T/F Incentivizing loan originators to sell mortgages containing disadvantageous loan terms, like pre-payment penalties, is prohibited under the Loan Originator Compensation Rule of 2013.

________________ consists of any information that can be readily and easily ascertained through a general public records search or a Freedom of Information and Protection Act (FOIPA) request.

Public personal

Public personal information consists of any information that can be readily and easily ascertained through a general public records search or a ____________________________________________

Freedom of Information and Protection Act (FOIPA) request.

FOIPA aka

Freedom of Information and Protection Act (FOIPA) request.

____________ is a term sometimes used to describe the coverages that homeowners insurance provides for certain risks, according to the Consumer Financial Protection Bureau (CFPB). If you hear someone mention ___________ insurance, they are likely referring to a homeowners insurance policy.

Hazard insurance, hazard

The only insurance that would be included in with a borrower’s PITI payment is insurance that would be required for owning the home and having a mortgage: __________, mandatory flood, and private mortgage insurance.

hazard

The only insurance that would be included in with a borrower’s PITI payment is insurance that would be required for owning the home and having a mortgage: hazard, mandatory____________, and private mortgage insurance.

flood

The only insurance that would be included in with a borrower’s PITI payment is insurance that would be required for owning the home and having a mortgage: hazard, mandatory flood, and _______________________.

private mortgage insurance

A __________contract spells out the rights of both the borrower and the lender. It specifies owner obligations such as, among other thing, maintaining the property as his or her principal residence or otherwise, maintaining the property properly, paying all taxes and government obligations on time, and maintaining certain hazard insurance on the property in the event of loss.

mortgage

The total periodic housing payment is referred to as ______________________________. The tax category includes property taxes. The insurance category includes traditional property insurance (hazard) possibly including hurricane, earthquake, and flood insurance when mandatory, and mortgage insurance, when required. Utilities are never paid through escrow

PITI (Principal/Interest/Taxes/Insurance)

The ______________ requires financial institutions and creditors to install special programs to identify, detect, and respond to patterns, practices, or specific activities that could indicate identity theft.

Red Flag Rule

______________includes unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents.

Red Flag Rule

A _____________program must describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program.

Red Flag Rule

Under the GLBA’s ___________ Rule, all financial institutions must create and implement a formal program in place to assure the protection of customer’s non-public, personal information

Safeguard’s

The _______________program must be regularly tested, have the ability to adapt to needed changes, and be overseen by a specific individual.

Safeguard

_______ insurance protects a policyholder from any events that occurred before the issuance of the policy against any losses that may arise from defects in the _________.

Title, Title

The ________ is a document created by the CSBS and the AARMR to guide states in implementing the legislation required by the SAFE Act.

Model State Law

The Model State Law is a document created by the ________ and the ________ to guide states in implementing the legislation required by the SAFE Act.

CSBS, AARMR

The Model State Law is a document created by the CSBS and the AARMR to guide states in implementing the legislation required by the ________.

SAFE Act

In order to implement an orderly and efficient licensing process, the _______________ may establish licensing rules or regulations and interim procedures for licensing and accepting applications

individual state’s commissioner

The NMLS or AARMR (nay/may not) establish individual state licensing rules

may not

The ____________ is based on the principle of substitution which states that a buyer is willing to pay only as much money to purchase a property as they would have to pay for another similar property.

sales comparison approach

FHA - property seller may contribute up to ____ percent of the sales price of the home to assist the borrower with closing costs. No part of the ___ percent may be used towards the borrower’s ____________

6, 6, down payment

The ___________________ requires all non-public, personal information of a customer’s to be secured when not in the direct, personal control of the mortgage professional.

Gramm-Leach-Bliley Act

Reasons for a _____________ policy include the homeowner’s policy may not meet the lender’s standards, it may not be renewed, it is cancelled by the insurance company, or the lender mistakenly does not receive proof of insurance when required.

force-placed

The cost of lender-placed property insurance may be much more expensive, and the lender-placed insurance does not include ______ coverage.

expensive, liability

The cost of the force-placed policy is collected through an increased ______________payment.

escrow

____________________ objectively examine the credit report and the 1003 to make a decision in seconds, based on published and acceptable guidelines.

Automated underwriting systems (AUS)

The benefit of using an ______________ is the speed in which an answer is delivered on the acceptability of a loan along with the _____________ willingness to purchase the loan once closed.

automated underwriting program, GSEs

__________ applies to all loans with the exception of home equity lines of credit, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest, second mortgage loans used for down payment assistance, property rehabilitation, energy efficiency, or ______________________.

TRID, foreclosure avoidance

TRID, energy efficiency

__________ applies to all loans with the exception of __________________________, reverse mortgages, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest, __________________________________, property rehabilitation, energy efficiency, or foreclosure avoidance.

TRID, home equity lines of credit, second mortgage loans used for down payment assistance

__________ applies to all loans with the exception of home equity lines of credit, ___________________, mortgages not secured by real property, loans made by persons not considered creditors, certain no-interest, second mortgage loans used for down payment assistance, _________________, energy efficiency, or foreclosure avoidance.

TRID, reverse mortgages, property rehabilitation

The UFMIP factor is currently _____% of the base loan amount added back into the loan (a lower UFMIP factor percentage applies for FHA _____________ loans).

1.75, streamline

__________ allows ______ and active duty alerts afford consumers added protection if they have previously been victimized by ________ and/or are in the military and on active deployment.

FACTA, Fraud

_________ allows Fraud and _________ afford consumers added protection if they have previously been victimized by _____________ and/or are in the ___________ and on ______________.

FACTA, active duty alerts, military, active deployment

(FACTA/FCRA) allows Fraud and active duty alerts afford consumers added protection if they have previously been victimized by fraud and/or are in the military and on active deployment.

FACTA

The___________________________to property valuation is useful when an appraiser can calculate the ratio of net operating income (NOI) to the sale prices of similar properties to derive a capitalization rate.

income capitalization approach

The income capitalization approach to property valuation is useful when an appraiser can calculate the ratio of _____________________________ to the sale prices of similar properties to derive a capitalization rate.

net operating income (NOI)

NOI aka

net operating income

the appraiser applies that _________________ rate to the calculated NOI of the subject property to develop a likely sales price.

capitalization

MICR aka

margin, index, caps, rate

periodic interest rate formula =

interest/12 months

monthly interest rate=

principal*periodic interest rate formula

P & I payment=

loan amount/1000 =x*factor=P&I

Principal payment =

P - I

factor =

$1 for every $1000

According to FCRA,_____________ are entities, such as creditors, that furnish credit-related information about their credit customers to a CRA.

Furnishers

According to F________, Furnishers are entities, such as creditors, that furnish credit-related information about their credit customers to a CRA.

FCRA

According to FCRA, Furnishers are ___________, such as creditors, that furnish credit-related information about their credit customers to a CRA.

entities

What is the amount of pre-paid (interim) interest owed by the borrower if her $205,000 fixed-rate loan at 5.5% closes on November 15th?

The daily or per diem rate of interest is $30.89 ($205,000 x 5.5% ÷ 365 days = $30.89). The borrower is responsible for the interest for 16 days (30 days in November minus 14, which is the day prior to closing). Therefore, the prepaid interest is $494.24.

How many days of pre-paid (interim) interest owed by the borrower if the loan closes on November 15th?

How many days of pre-paid (interim) interest owed by the borrower if the loan closes on April 4th?

A _____ is a legal document that transfers rights of ownership from the grantor to the grantee.

deed

A deed is a legal _________ that transfers rights of ownership from the grantor to the grantee.

document

A deed is a legal document that transfers ______________ from the grantor to the grantee.

rights of ownership

A deed is a legal document that transfers rights of ownership from the ________ to the __________.

grantor, grantee

The deed must be in _________(formal document)

writing

The _________ must contain the signature of a competent grantor who is of legal age and be recorded into public record.

deed

The deed must contain the _________ of a competent grantor who is of legal age and be recorded into public record.

signature

The deed must contain the signature of a competent _________ who is of _________ and be recorded into public record.

grantor, legal age

The deed must contain the signature of a competent grantor who is of legal age and be_________ into _________.

recorded, public record

The ________ must have a legal description to identify the property and be delivered and accepted by the grantee.

The deed

The deed must have a________ _______ to identify the property and be delivered and accepted by the grantee.

legal description

The deed must have a legal description to ________ the ________ and be delivered and accepted by the grantee.

identify the property

The deed must have a legal description to identify the property and be ________ and ________ by the grantee.

delivered, accepted

The deed must have a legal description to identify the property and be delivered and accepted by the ________.

grantee

A ______________provides security to the lender if the borrower does not honor all of the terms of the mortgage contract, especially if he or she fails to make the required payments.

mortgage lien

In the event of borrower’s default, the _____ gives the lender certain rights, depending on the laws of ___________.

lien, each state

In most cases, the lien allows the _________ to take possession of and sell the property to recoup some or all losses.

lender

In most cases, the _________ allows the lender to take possession of and sell the property to recoup some or all losses.

lien

In most cases, the lien allows the lender to take _________ of and _________the property to recoup some or all losses.

possession, sell

By fraudulently convincing a lender to approve a short sale for a property that is worth significantly less than it is actually worth, an unscrupulous real estate professional can “______” the property for its actual value shortly after the lender releases the lien and illegally earn a profit is called __________________

flop, flopping

A “Section ___________ ” loan becomes a ___________ when it’s APR exceeds 1.5% of the ___________ applicable at the time of rate lock and mandates an escrow account for the payment of real estate taxes and homeowner’s insurance for no less than five years.

35, HPML, APOR

A “Section 35” loan becomes a HPML when it’s ___________ exceeds ___________ % of the APOR applicable at the time of ___________ and mandates an escrow account for the payment of real estate taxes and homeowner’s insurance for no less than five years.

APR, 1.5, rate lock

A “Section ___________ ” loan becomes a HPML when it’s APR exceeds ___________ % of the APOR applicable at the time of rate lock and mandates an ___________ account for the payment of real estate taxes and homeowner’s insurance for no less than five years.

35, 1.5, escrow

A “Section 35” loan becomes a ___________ when it’s APR exceeds 1.5% of the ___________ applicable at the time of rate lock and ___________ an escrow account for the payment of real estate taxes and homeowner’s insurance for no ___________ than ___________ years.

HPML, APOR, mandates, less, five

____________ provide an independent, educated, and experienced estimate of a specific property’s value at a particular point in time.

Appraisers

A loan originator who encourages a borrower to pursue a product that is not in the borrower’s best interests but pays the loan originator a higher commission is guilty of:

steering

_______ is the unethical practice of encouraging a customer to pursue a loan product that benefits the originator but is not the best-suited product for that borrower.

Steering

Under _______, zero-tolerance fees consist of fees paid to the _______, mortgage broker, or either’s affiliate, fees paid to a third party if the lender required the use of a particular service provider, and real estate transfer taxes.

TRID, creditor

Under _______, zero-tolerance fees consist of fees paid to the creditor, mortgage broker, or either’s _______, fees paid to a third party if the lender required the use of a particular service provider, and real estate transfer taxes.

TRID, affiliate

Under _______, zero-tolerance fees consist of fees paid to the creditor, _______ _______, or either’s affiliate, fees paid to a third party if the lender required the use of a particular service provider, and real estate transfer taxes.

TRID, mortgage broker

Under TRID, _______-tolerance fees consist of fees paid to the creditor, mortgage broker, or either’s affiliate, fees paid to a _______ _______ if the _______ required the use of a particular service provider, and real estate transfer taxes.

zero, third party, lender

Under _______ zero-tolerance fees consist of fees paid to the creditor, mortgage broker, or either’s affiliate, fees paid to a third party if the lender _______ the use of a particular service provider, and _______ _______ _______ taxes.

TRID, requires, real estate transfer taxes

Fraud for ______ costs the mortgage industry more than any other type of fraud.

profit

______ ______ ______ state that lenders must promptly report any reasonable suspicion of appraiser or appraisal management company misconduct (violation of a law or ethics) to the appropriate state licensing or certifying agency.

Appraiser Independence Requirements

Under the______ , in a ______ -face-to-face application scenario, the loan originator should simply indicate that the applicant refuses to answer the government monitoring questions if they refuse to disclose their race, national originating, and/or sex when requested to do so.

Home Mortgage Disclosure Act, non

______ information for specific accounts reported in the credit report represents 35 percent of the ______ ______

Payment, credit score

Payment information for specific accounts reported in the credit report represents ______ percent of the credit score

Other than Payment information _____% consists of credit usage in relation to available credit (capacity), the amount of inquiries, the amount of open tradelines, public records, account age, and consumer age.

A score will be lowered with too many retail accounts, particularly ones carrying balances in excess of ___% of the credit limit.

The ___ must be paid for a minimum of 11 years on loans having an initial LTV less than ___%

,MIP, 90

In the FHA loan program, qualification is not credit-score driven and as little as __ months of clean credit history may qualify a borrower.

A lender has strict guidelines on how much to lend and it’s generally based on a _______ percentage of the market value of the property

maximum

_______ was implemented primarily to address the issue of identity theft for consumers.

FACTA

_______ major sections include access to one free credit report annually from each of the three credit reporting agencies (CRAs)

FACTA

_______ established a fraud alert system among CRAs

FACTA

_______requires credit/debit card numbers to be truncated

FACTA

_______ requires disclosure of Rights of Identity Theft Victims and the Credit Disclosure Notice

FACTA

_______ established the Red Flag Rule.

FACTA

The six pieces of information constituting a live mortgage _______ are the _______, monthly income, social security number, property address, estimated property value or purchase price, and loan amount.

application, borrower’s name

The six pieces of information constituting a live mortgage application are the borrower’s name, _______, social security number, property address, estimated property value or purchase price, and loan amount.

monthly income

The six pieces of information constituting a live mortgage application are the borrower’s name, monthly income, _______, property address, estimated property value or purchase price, and loan amount.

social security number

The six pieces of information constituting a live mortgage application are the borrower’s name, monthly income, social security number, _______, estimated property value or purchase price, and loan amount.

property address

The six pieces of information constituting a live mortgage application are the borrower’s name, monthly income, social security number, property address, _______, and loan amount.

estimated property value/purchase price,

The six pieces of information constituting a live mortgage application are the borrower’s name, monthly income, social security number, property address, estimated property value or purchase price, and _______.

loan amount

_________________ is referred to as “mattress money” because it was often hidden in or under one’s mattress. Mattress money is not allowed to be used in a mortgage transaction due to its difficulty being sourced.

Cash-on-hand

Using the sales comparison method, if a subject property had an extra full bathroom ($6,000) that the comparable property did not, but was on a less desirable lot ($5,000), the proper adjustment would be to:

A characteristic such as having an extra bathroom in the subject property is the same as saying the comparable is inferior. As such, you would add $6,000 to the price of the comparable. Since the subject’s lot is not as good as the comp’s lot, you would subtract $5,000 from the comp’s price. The net effect is to add $1,000 to the comparable.

Mortgage loan originator continuing education requirements include a minimum of eight hours in total, but only seven hours is designated content: ________ hours of federal law and regulations, ________ hours of ethics including instruction on fraud, consumer protection, and fair lending issues, and ________ hours of training related to lending standards for the nontraditional mortgage product marketplace. The ________ hour can be used to elaborate on one of the previous topics or to incorporate a state-specific CE component

three, two, two, eighth

Mortgage loan originator continuing education requirements include a minimum of eight hours in total, but only seven hours is designated content: three hours of ________, two hours of ________, and two hours of training related to lending standards for the ________mortgage product marketplace. The eighth hour can be used to elaborate on one of the previous topics or to incorporate a state-specific CE component

federal law and regulations, consumer protection, and fair lending issues, nontraditional

pre-licensing education which is more rigorous in that it requires three hours of ______ instead of two.

ethics

That which constitutes prohibited acts or practices by a mortgage loan originator are: to conduct any business covered by a _________licensing act without holding a valid license, fail to make disclosures as required by the _________ licensing act and any other applicable state or federal law including regulations thereunder, to make, in any manner, any false or deceptive statement or representation (including, with regard to the rates, points, or other financing terms or conditions for a residential mortgage loan, or engage in bait and switch advertising)

state’s,

PMI (Private Mortgage Insurance) repays the lender for a percentage of the first __% of the loan’s value for losses suffered if the borrower defaults on the loan.

VA loans may not be used for ___________ or _____________ purposes.

investment, business

Any time an ___________ or associate relationship exists between two entities, a borrower referred between those entities must be issued an Affiliated Business Arrangement Disclosure (ABAD

affiliate

Any time an affiliate or _______________ relationship exists between two entities, a borrower referred between those entities must be issued an Affiliated Business Arrangement Disclosure (ABAD

associate

A husband working for the insurance agency creates an _______ relationship for which an ABAD was required.

associate

husband owning for the insurance agency created an _______ e and _______ relationship for which an ABAD was required.

associate, affiliate

friend working for the insurance agency created an _______ relationship for which an ABAD was required.

affiliate

Properly-underwritten approved FHA loans are _________ against default through the remission of a mortgage insurance premium. By collecting a funding fee, the VA “_____________” that the loan will perform.

insured, guarantees

Properly-underwritten approved FHA loans are insured against default through the remission of a _________. By collecting a _________, the VA “guarantees” that the loan will perform.

mortgage insurance premium, unding fee

__________companies dispute accounts listed in the credit report that have late payments or other negatives. They hope that the credit reporting agencies will take longer than 30 days (the time allowed by law) or hope that the creditor is no longer be in business. Without a timely or factual response, by law, the credit reporting agency must remove the disputed entry.

Credit repair

The overall purpose of the ____________ is to protect consumers seeking mortgage loans and to ensure the mortgage lending industry is operating without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators.

Model State Law (MSL)

The surety bond provides coverage for each mortgage loan originator in an amount that reflects the dollar amount of loans originated as determined by the _______________

Commissioner

The ______________ may promulgate rules or regulations with respect to the requirements for such surety bonds as are necessary to accomplish the purposes of the SAFE Act.

Commissioner

When mortgage fraud occurs by the professionals involved convincing a lender to fund a loan securitizing a property that doesn’t exist based on falsified documentation in order to keep the proceeds, this mortgage fraud is an example of an _____________.

air loan.

When the Fed wants to __________ the supply of money, it will sell securities in the open market, raise the discount rate, and raise the reserve requirement.

reduce

When the Fed wants to ________ the supply of money, it will buy securities in the open market, lower the discount rate, and lower the reserve requirement.

raise

When the _____ wants to reduce the supply of money, it will sell ________ in the open market, raise the ___________, and raise the __________ requirement.

Fed, securities, discount rate, reserve

The VA’s loan guarantee is equal to the vet’s entitlement amount once the lender agrees to lend a minimum of ______ times the amount of the entitlement.

four

Once ___________, mortgage loans may be retained by the lender in its own portfolio where, since it was ____________ with the lender’s own funds, allows it to earn and retain the interest, sold through the secondary market to any of the three appropriate GSEs (Fannie Mae, Freddie Mac, or Ginnie Mae), or it may be sold to private investors.

funded, funded

The ___________ legislation that was developed by the CSBS and AARMR to assist states in complying with the SAFE Act was called the ___________ .

model state legislation, MSL, or Model State Law

The model state legislation that was developed by the ___________ and ___________ to assist states in complying with the SAFE Act was called the MSL, or Model State Law.

CSBS, AARMR

All the ____________ must sign the deed, but ___________ generally do not sign the deed.

grantors, grantees

The deed conveys title to the property when it is delivered and voluntarily accepted by the _________(s).

grantee

The____________ to valuation approximates the value a potential buyer might experience if he/she was to build a structure similar to the subject property on a vacant parcel.

cost approach

The____________ to valuation values of the site (land without any man-made structures) is calculated, usually through the sales comparison approach.

cost approach

The____________ to valuation value of all the man-made improvements which have been applied to the land is calculated by looking at how much it will cost to replace or rebuild those improvements based on today’s building codes, materials, and prices.

cost approach

The____________ to valuation The amount of the depreciation on the existing improvements is subtracted from how much it will cost to replace or rebuild those improvements based on today’s building codes, materials, and prices and added to the value of the site

cost approach

The property to be purchased must be appraised by an approved VA appraiser. The lender requests a VA appraisal. In addition to the VA appraisal, the appraisal process results in the production of a ______________________

Notice of Value (NOV).

Notwithstanding or subject to state privacy law, a state commissioner is required to regularly report violations of the Act, as well as enforcement actions and other relevant information, to the _________________.

NMLS.

A __________ is a legal promise to issue a title policy; it is a statement of the terms and conditions that the insurance company agrees to uphold.

title commitment

The ______________ describes the condition of the property at that time.

title commitment

_________ occur when a recipient of business compensates the source of that business for referring the business to them. This is a serious _____________ violation.

Kickbacks, RESPA

Each licensed mortgage loan originator must register with and maintain a valid unique identifier issued by the __________.

NMLS

The ____________ issues the license and the unique identifier is only a number obtained from the _____________ for tracking and data purposes.

state, NMLS

The state issues the __________ and the __________ is only a number obtained from the NMLS for tracking and data purposes.

license, unique identifier

_______ becomes problematic when a property is acquired at an artificially-deflated value and then sold at true market value shortly thereafter.

Flipping

Interested parties, such as lenders, buyers, and title insurance companies, need to perform _________________, obtain abstracts of titles, and review the chain of title in order to trace the previous owners of the property and to identify any encumbrances (liens or financial claims as well as physical restrictions such as easements or rights of way) on the property.

title searches

________________ must be issued within three business days of receiving a loan application and all non-interest related fees appearing on it must be good for a minimum of _________ business days from the date it was presented or mailed to the borrower.

The initial Loan Estimate (LE), ten

___________________ and ___________________ together routinely purchase more than two out of three of all residential mortgages in the nation. They are referred to as GSEs or___________________. The ___________________ set underwriting guidelines for conforming loans on one- to four-unit properties. The loan limits are set each year by the ___________________

Freddie Mac, Fannie Mae, government sponsored enterprises, GSEs, FHFA

______________________occurs when a neutral action adversely affects a particular class or group of people. By refusing to originate low-balance mortgage loans, ABC Mortgage Company could be accused of adversely affecting low-income individuals who may not be able to afford higher balance mortgages.

Disparate impact

Bushley the Buyer has 11% to put down. He wishes to avoid PMI by pursuing piggyback financing. The scenario for which he decided is:

69/20/11 When structuring a piggyback loan scenario, the first number always represents the LTV of the primary mortgage. Since the primary goal is to avoid paying PMI, that loan must be at or below 80%. The second number represents the LTV of the second mortgage and the third represents the borrower’s down payment (11%). All three numbers must add up to 100% since LTV + equity must always equal 100%.

Seller’s concessions are based upon the________________. Since the purchase price is $750,000 and the seller is offering 2% in concessions, the seller’s concession will amount to $15,000.

purchase price

Investor criteria maintains that, if a borrower intends to use retirement funds as a source of settlement funds and is younger than ___ ½ (the typical age of retirement), unless the amount contained in any one specific retirement account equates to or exceeds ___% of the total amount of cash needed to close, the value of each retirement account must be considered at ___% of its _______ value.

59, 20, 70, face

Helena is a 30-year old mansion buyer. In order to close on the purchase of her new estate, she will need to bring $657,500 to the settlement table. Her only asset from which she intends to secure this money is her IRA account bearing a face value of $755,000. Assuming that all other underwriting conditions have been satisfied, will Helena be able to close on her loan?

Since Helena is younger than 59 ½ and, since the face value of her retirement account is less than 20% above the total amount of money needed to settle, the value of her retirement account may only be considered $528,500 (755,000 x 70%). Helena will need to document an additional $129,000 in order to close.

Any loan exceeding the published loan limit for a one- to four-unit property cannot be purchased by Fannie or Freddie. These are called ___________ or _____-conforming loans and are purchased by other secondary market investors.

jumbo, non

Lenders must adhere to the underwriting standards of the investors to which they sell their loans. Lenders may establish their own conventional loan parameters that are either stricter than the parameters of the _____ and still sell them to the ______ or that differ and ultimately place those loans into portfolio or sell them to private investors.

GSEs, GSEs

________-RESPA Integrated Disclosure Rule (________) amended RESPA Sections ________ and ________ disclosure requirements,

TILA, TRID, 4, 5

_____ exempts reverse mortgages and loans made by a creditor who makes _____ or fewer loans in a year

RESPA, 5

_____section _____ eliminates kickbacks and referral fees.

RESPA, 8

____ helps consumers become better shoppers for settlement services

RESPA

____________ Section ________: ________ Settlement Statement: Required at ________ or settlement. Amended under ________

RESPA, 4, HUD-1, closing, TRID

________ Section ________: ________ of settlement costs required ________ days after receiving the loan application. Amended under ________

RESPA, 5, Good Faith Estimate (GFE), 3, TRID

________, Section ________: Mortgage Servicing Disclosure Statement

RESPA, 6

________ Section _______: _______ Booklet, required for purchase transactions only, ____ days after receiving the loan applications,

RESPA, 5, Special Information Booklet, 3, TRID

RESPA, Section 6: ________ Servicing ________ Statement

Mortgage, Disclosure

RESPA, Section 6: Mortgage ________ Disclosure ________

Servicing, Statement

Mortgage Servicing, RESPA Section ____

Settlement Costs, RESPA Section ____

HUD-1, RESPA Section ____

GFE, RESPA Section ____

Special Information Booklet, RESPA Section ____

_______ _______ _______ _______RESPA Section _______, Discloses to the borrower whether the _______ intends to service the loan or transfer it to another lender.

Mortgage Servicing Disclosure Statement, 6, lender

Mortgage Servicing Disclosure Statement _______Section 6 is required within _______ business days of a loan application for a mortgage _______ loan

RESPA, 3, servicing

_______ _______ _______ _______RESPA Section _______ must indicate whether the servicing of the loan nay be assigned, sold or ______ to any other ______ at any time the loan is outstanding.

Mortgage Servicing Disclosure Statement, 6, transferred, person

Each transferor servicer and transferee servicer of any mortgage servicing loan shall deliver to the borrower a written _______ of _______, of any assignments also, or transfer of the servicing of the loan.

Notice of Transfer

The ______ must deliver notice to the borrower no less than ___days ___ the effective date of the transfer of servicing the mortgage servicing loan

transferor, 15, before

The transferee must deliver the notice of the ______ no more than __ days ___ the effective date of the servicer

borrower, 15 after

IF during the ___-days period, beginning on the effective date of the transfer, a ______ receives payment on or before the application due date, a late ___may not be imposed on the borrower with respect to that payment

60, servicer, fee

IF during the ___-days period, beginning on the effective date of the _____, a servicer receives payment on or before the application due date, the payment may not be treated as ___ for any other reason

60, transfer, late

QWR aka

qualified written request

A ____________ must acknowledge a QWR within ____________ business days

servicer, 5

A servicer must take action on a QWR from a borrower within ____ ____days

30 business

A servicer must notify a borrower of any delinquency by the ___________th day of the delinquent day of the loan payment

A ___________ must be acknowledged by a servicer within ___________business days

QWR, 5

Servicers must take action on ___________within 30 business days

QWRs

Payment ___________ must be alerted to the borrower by the 36th day ___________ due

delinquencies, past

After a loan servicing transfer, a late fee may not be imposed after ___ days following the servicing effective date.

ABAD aka

Affiliated Business Arrangement Disclosure

This is required whenever a settlement service provider involved in a RESPA covered transaction refers the consumer to a referring party that meets certain conditions

Affiliated Business Arrangement Disclosure (ABAD)

________________________________is required when the referring party has a greater than a 1% ownership or other beneficial interest.

Affiliated Business Arrangement Disclosure (ABAD)

Affiliated Business Arrangement Disclosure (ABAD) is required when the referring party has a greater than a _____% ownership or other beneficial interest.

Affiliated Business Arrangement Disclosure (ABAD) is required when the referring party has a greater than a 1% ____________________ or other ____________________ interest.

ownership, beneficial

This is required when the referring parties have an Associate relationship, meaning the transaction would not qualify as "arms-length."

Affiliated Business Arrangement Disclosure (ABAD)

_____________ relationship, meaning the transaction would not qualify as "arms-length."

Associate

An_____________ transaction refers to a business deal in which buyers and sellers act independently (with/without) one party influencing the other.

arm's length, with out

Both parties involved in an _______________ sale usually have no relationship with each other.

arm's length

Deals between family members or companies with related shareholders (are/are not) considered arm's length transactions.

are not

_______________is required at or before the time of the referral

Affiliated Business Arrangement Disclosure (ABAD)

Any non arm's length arrangement is required at or before the time of the _______________

referral

T/F Arms' length referrals require an ABAD

T/F Associate relationships are not arm's length

RESPA Section __ _________ an employer's payment to his/her own employees for any referral activities

8, permits

The term payment is synonymous with the giving or receiving any "________________" and does not require the transfer of money.

thing of value

_________record retention is required for 5 years

RESPA

Any document provided pursuant to RESPA shall be retained for ____ years

Violations for RESPA Section 8 anti-_________ provisions include fine up to $________and _____ year in prison.

kickback, 10,000, one

Civil Law Suits for _______ Section 8 anti-kickback provisions, liability is limited to _______times of the charge paid for the _______

RESPA, three, service

Civil penalties for _______ Section 8 anti-kickback provisions may include up to _______ times of the charge paid for the _______

RESPA, three, service

RESPA Section __: seller required title insurance

_______ Section 9 prohibits a _______from requiring the home buyer to use a particular _______ insurance company

RESPA, seller, title

RESPA Section _______ _______ a seller from requiring the _______ to use a particular title insurance company

9, prohibits, home buyer

_______ Section _______ : Escrow Accounts

RESPA, 10

RESPA Section 10 : _______ _______

Escrow Accounts

RESPA Section 10 requires an _________________________ which itemizes the estimated taxes, insurance premiums, and other charges anticipated to be paid from the escrow account during the first 12 ___________ of the loan

Initial Escrow Statement, months

RESPA Section ____requires an Initial Escrow Statement is required at closing or within ___ days of closing

10, 45

Initial Escrow Statement which itemizes the estimated ______, _______ premiums, and other charges anticipated to be paid from the escrow ______ during the first _____months of the loan

taxes, insurance, account, 12

_____________________________ itemizes the estimated taxes, insurance premiums, and other charges anticipated to be paid from the escrow account during the first 12 months of the loan

Initial Escrow Statement

RESPA Section 10 requires an __________________________ which provides an estimate of the escrows once a year

10. Annual Escrow Statement

__________________________ which provides an estimate of the escrows ______ a year

Annual Escrow Statement once

________________________ are due within 30 days prior to the end of the year.

Annual Escrow Statements

Annual Escrow Statements are due within ____ days prior to the end of the year.

Annual Escrow Statements are due within 30 days prior to the end of the _____.

year

GFE : RESPA Section __ HUD-1 : RESPA Section __ Special Information Booklet : RESPA Section __ Mortgage Servicing : RESPA Section __ Mortgage Servicing : RESPA Section __ Kickbacks : RESPA Section __ Referrals : RESPA Section __ Annual Escrow Statement : RESPA Section __ Initial Escrow Statement : RESPA Section __ Notice of Transfer : RESPA Section __ ABAD : RESPA Section __ Title Insurance : RESPA Section__

5 4 5 6 10 8 8 10 10 6 8 9

Mortgage Servicing : RESPA Section __ Title Insurance : RESPA Section__ HUD-1 : RESPA Section __ Special Information Booklet : RESPA Section __ Escrows : RESPA Section __ ABAD : RESPA Section ___ Settlement Costs, RESPA Section ____

6 9 4 5 10 8 5

____Regulation Z Title 1 of the Consumer Credit Protection Act

TILA

TILA Regulation ___Title 1 of the Consumer Credit Protection Act

TILA Regulation Z Title __ of the Consumer Credit Protection Act

Title 1 of the Consumer Credit Protection Act is ____ Regulation ___

TILA, Z

TILA Regulation Z Title 1 of the Consumer Credit Protection Act was under ___ now under ___ agency enforcement

FED, CFPB

___ Regulation ___Title ___of the Consumer Credit Protection Act promotes the informed use of consumer credit by requiring the disclosures about its terms and cost

TILA, Z, 1

What promotes the informed use of consumer credit by requiring the disclosures about its terms and cost?

TILA Regulation ZTitle 1 of the Consumer Credit Protection Act

To help consumers become better shoppers for settlement services is _______ Reg____. To promote the informed use of consumer credit by requiring the disclosures about its terms and cost is _______ Reg____

RESPA Reg X, TILA Reg Z

TRID formed by _______ amended Reg _______ early and closing _______disclosures by integrating them with RESPA Reg _______ Sections _______ and _______disclosures effective October 3, _______

CFPB, Z, TILA, X, 4, 5 2015

TRID formed by CFPB amended Reg Z early and closing TILA disclosures by integrating them with RESPA Reg X Sections 4 and 5 disclosures effective October 3, 2015

TRID, early, closing, integrating, RESPA, disclosures , October 3

TILA Reg ___ applies to individuals and business that ______ credit

Z, extend

_____ Reg Z applies to individuals and business that extend ____ when offered to consumers

TILA, credit

TILA Reg Z applies to individuals and _____that extend credit when offered to ________ and subject to a finance charge

business, consumers

____Reg Z applies to ______ and business that extend credit when offered to consumers and subject to a finance charge or payable in more than 4 ________

TILA , individuals, installments

TILA Reg Z applies to individuals and business that extend credit when offered to consumers and subject to a _____ charge or payable in more than ___installments as stated in a written agreement

finance , 4

______Reg ___ applies to ______ whether individuals and business that extend credit when offered to consumers and subject to a finance ______ or payable in more than 4 installments as stated in a written agreement that is primarily for ______, family or household purposes

TILA. Z, creditors, charge, personal

________ Reg Z applies to individuals and ________ that extend credit when offered to ________ and subject to a finance charge or payable in more than ____ installments as stated in a written agreement that is primarily for personal, ________ or household purposes

TILA, business, consumers, agreement , 4 family

TILA Reg ___ applies to ____________ and business that extend credit when offered to consumers and subject to a ____________or payable in more than ___ ____________ as stated in a written agreement that is primarily for personal, family or household ____________

Z, individuals, finance charge, installments, household

The time that a consumer becomes contractually obligated on a credit transaction

consummation

_________ happens when a promissory note is signed

consummation

consummation may/may not be a different date than the settlement (RESPA) or closing date

may

____ is a person who extends consumer credit that is subject to a finance charge

Creditor

____ is a person who extends consumer credit that is subject to 4 payable installments stated by a written agreement

Creditor

____ is a person who extends consumer credit that is subject to a finance charge and 4 payable installments stated by a written agreement

Creditor

TO whom the obligation is initially payable, either the face of the note or the contract, or by the agreement when there is no contract or note

creditor

A creditor does NOT include a person who does NOT extend credit more than ___ times a year

Jeb extends his buddies credit 4 times this year, Jeb (is/is not) a creditor

IS NOT

The cost of consumer credit in $ amount

finance charge

A ____________ includes any charge payable directly or indirectly by the __________ and imposed directly or indirectly by the ________ as a condition of the extension of ___________

finance charge, consumer, creditor, credit

A _________ includes any charge _________ directly or indirectly by the consumer and _________ directly or indirectly by the creditor as a condition of the extension of credit

finance charge, payable, imposed

A rate of finance charge that is or may be imposed by a creditor on a balance for a day, week, month or other subdivisions of the year

periodic rate

____________- end credit is a revolving account secured by equity in real property

open

Open- end credit is a revolving account secured by ________ in real property

equity

Open-end credit early disclosures secured by equity in real property include an application Disclosure and a ______brochure

HELOC

Open-end credit early disclosures secured by equity in real property include an ________ Disclosure and a HELOC brochure

application

_______-end credit early disclosures secured by equity in real property include an application Disclosure and a HELOC brochure

Open

T/F When discussing tax deductibility on any transaction, a MLO is acting outside the scope of his/her authority if tax advise or any other specialized advice outside the scope of mortgage loan originating is provided

Closed-End Disclosures include: 1. ______________ - The identity of the creditor making the disclosures

Creditor

Closed-End Disclosures include: 1. Creditor - The ___________of the creditor making the disclosures

identity

Closed-End Disclosures include: 1. Creditor - The identity of the creditor making the disclosures 2. Amount ______ - The amount of credit provided to you on your behalf.

Amount Financed

Closed-End Disclosures include: 1. Creditor - The identity of the creditor making the disclosures 2. Amount Financed - The amount of __________ provided to you on your behalf.

credit

Closed-End Disclosures include: 1. Creditor - The identity of the creditor making the disclosures 2. Amount Financed - The amount of credit provided to you on your behalf. 3. ______ ______ - the dollar amount the credit will cost you

Finance Charge

dollar

Annual Percentage Rate

yearly

Closed-End Disclosures include: 1. Creditor - The identity of the creditor making the disclosures 2. Amount Financed - The amount of credit provided to you on your behalf. 3. Finance Charge - the dollar amount the credit will cost you 4. Annual Percentage Rate - the cost of credit as a yearly rate 5. Variable Rate - IF an ________ transaction, the consumer must be provided with the booklet intitled ___________________________________ and the loan program disclosure for each variable-rate program the consumer expresses an interest

ARM, CHARM (Consumer Handbook on Adjustable Rate Mortgages)

Closed-End Disclosures include: 1. Creditor - The identity of the creditor making the disclosures 2. Amount Financed - The amount of credit provided to you on your behalf. 3. Finance Charge - the dollar amount the credit will cost you 4. Annual Percentage Rate - the cost of credit as a yearly rate 5. ______________ - IF an ARM transaction, the consumer must be provided with the booklet intitled CHARM (Consumer Handbook on Adjustable Rate Mortgages) and the _____________ disclosure for each variable-rate program the consumer expresses an interest

Variable Rate, loan program

Closed-End Disclosures include: 1. Creditor - The identity of the creditor making the disclosures 2. Amount Financed - The amount of credit provided to you on your behalf. 3. Finance Charge - the dollar amount the credit will cost you 4. Annual Percentage Rate - the cost of credit as a yearly rate and when there is a prepayment penalty, a pre-payment disclosure (TIL, GFE, HUD1, LE, CD and the Note)

Under TILA, ______-end disclosures with a pre-payment penalty, these docs require disclosure: TIL GFE HUD1 LE CD Promissory Note

closed

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: TIL GFE HUD1 LE CD Promissory Note

TILA

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: ____ GFE HUD1 LE CD Promissory Note

TILA, TIL

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: TIL ____ HUD1 LE CD Promissory Note

TILA, GFE

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: TIL GFE ______ LE CD Promissory Note

TILA, HUD1

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: TIL GFE HUD1 ____ CD Promissory Note

TILA, LE

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: TIL GFE HUD1 LE ____ Promissory Note

TILA, CD

Under _____ closed-end disclosures with a pre-payment penalty, these docs require disclosure: TIL GFE HUD1 LE CD _____________________

TILA, Promissory Note

Under TILA, the _____ is a measure of the cost of credit, expressed as a yearly rate

APR

Under _____, reg ____, the APR shall be considered accurate if it is NOT more than 1/___ of 1 % point above or below the APR determined for regular transactions as disclosed in the early disclosures.

TILA, Z, 8, early

Under TILA, reg Z, the ____ shall be considered accurate if it is NOT more than 1/8 of 1 % point above or below the ____determined for __________ transactions as disclosed in the early __________.

APR, APR, disclosures, regular

Under TILA, reg Z, the APR shall be considered accurate if it (is/is not) more than 1/8 of 1 % point above or below the APR determined for ______ transactions as disclosed in the early disclosures.

is not, 1, above, below, regular

Under ____, reg ___, the APR shall be considered accurate if it (is/is not) more than 1/___ of 1 % point above or below the APR determined for regular transactions as disclosed in the early disclosures.

TILA, Z, is not, 4,

Under TILA, reg Z, the _____ shall be considered accurate if it is not more than 1/4 of __ % point above or below the ____ determined for _____ transactions as disclosed in the ____ disclosures.

APR, APR, 1, irregular, early

Under TILA, reg Z, the APR shall be considered accurate if it (is/is not) more than 1/4 of 1 % point ________ or ________ the APR determined for ________ transactions as disclosed in the early _________.

is not above, below, irregular, disclosures

Right to rescind only involves a consumer's ________ property

principle

Jerry decides to rescind his refinance his HEQ he signed two days ago for his rental property, can he?

Right to rescind is valid until midnight of the the third precise biz day following ____________, delivery of notice or delivery of all material disclosures, whichever is last.

midnight, third, consummation

Right to rescind is valid until midnight of the the third _________- biz day following consummation, delivery of _______ or delivery of all material disclosures, whichever is last.

precise, notice

Right to rescind is valid until midnight of the the third precise biz day following consummation, delivery of notice or delivery of all material _________, whichever is l_________.

disclosures, last

Notice of right to rescind shall be by _________ or other means of written communication

mail

Notice of right to rescind shall be by mail or other means of _____________ communication

written

Right to rescind notice is considered given when mailed, filed electronically, or sent by __________ means.

other

Right to rescind notice is considered given when ____________, filed electronically, or sent by other means.

mailed

Right to rescind notice is considered given when mailed, filed __________, or sent by other means.

ectronically

A creditor must retain evidence of compliance with TILA, other than advertising requirements for ___ years after the disclosures are required to be made or action to be required

Violations of TILA with regard to closed-end transactions secured by real property or dwelling for an individual include minimum of $____ to max of $_____.

$400, $4000

Violations of ____ with regard to closed-end transactions secured by real property or dwelling for an individual include minimum of $400 to max of $4000.

TILA

Violations of TILA with regard to closed-end transactions secured by real property or dwelling from a class action suit includes no minimum for each defendant and for an individual creditor no more than the lesser $____________or __% net worth,

$1,000,000, 1

Violations of _____ with regard to closed-end transactions secured by real property or dwelling from a class action suit includes no minimum for each defendant and for an individual creditor no more than the lesser $1,000,000 or 1% net worth,

TILA

This promotes the availability of credit to all creditworthy applicants without regards to race, color, religion, sex, marital status, or age.

ECOA

This requires creditors to notify applicants of action taken on their applications

ECOA

This requires creditors to report credit histories in the name of both spouses on an account

ECOA

This prohibits creditors from discriminating on the basis of any the prohibited factors

ECOA

This requires applicants with copies of their appraisal reports used in connection with credit transactions

ECOA

When a creditor shall not disfavor against an applicant on a prohibited basis regarding any aspect of a credit transaction

discrimination

In ECOA When a creditor shall not make any oral or written statements, in advertising or otherwise, to applicants or prospective applicants that would demoralize on a prohibited basis a reasonable person from making or pursuing an application

discouragement

_______ ONLY considers married, unmarried and separated as a __________ status.

ECOA, marital

ECOA ONLY considers _______, unmarried and separated as a marital status.

married

ECOA ONLY considers married, _________ and separated as a marital status.

unmarried

ECOA ONLY considers married, unmarried and _____________ as a marital status.

separated

___________does NOT consider divorced, single and widowed as a _________status

ECOA, marital

ECOA does NOT consider _____________, single and widowed as a marital status

divorced

ECOA does NOT consider divorced, _____________ and widowed as a marital status

single

ECOA does NOT consider divorced, single and __________ as a marital status

widowed

Which does ECOA not include? married, race, religion, handicapped, color, natural origin

handicapped

Which does ECOA not include? married, race, religion, age, divorced, color, natural origin

divorced

Which does ECOA not include? married, race, widowed, married, unmarried, religion, age, divorced, color, natural origin

widowed

Which does ECOA not include? married, race, single, married, unmarried, religion, age, divorced, color, natural origin

single

When a creditor treats an applicant differently based on a prohibitive basis

disparate treatment

_____ prohibited basis: 1. Age (unless under 18) 2. Future childbearing affecting income 3. Applicants telephone listing for credit, but phone associated with address is fine 4. Immigration status: U.S. citizen/PR and any information that ascertains the applicant's legal rights 5. Married, unmarried, separated 6. Never marital status.

ECOA

ECOA requires the creditor to take Notice of Action within ______ days of receiving an application

_______ requires the creditor to take Notice of Action within 30 days of receiving an application

ECOA

ECOA requires the creditor to take _________ within 30 days of receiving an application

Notice of Action

ECOA requires the creditor to notify applicant ___ days after taking adverse action.

______ requires the creditor to notify applicant 30 days after taking adverse action.

ECOA

ECOA requires the creditor to notify applicant 30 days after taking _____ action.

adverse

__________ has 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept the use of credit offered.

ECOA

ECOA has _____days after notifying the applicant of a counteroffer if the applicant does not expressly accept the use of credit offered.

_______ requires notification in writing when taking adverse action

ECOA

__________ requires name and address of the creditor when taking adverse action

__________ content of notification must contain a statement of the action taken when adverse action taken

ECOA

__________requires name and address of the Federal Agency that administers compliance with respect to the creditor when taking adverse action

ECOA

__________ requires the specific reason when taking adverse action

ECOA

__________requires the specific reason when taking adverse action

ECOA

________ 30 60 30 rule 30 days to disclose the applicants right to a statement of specific reasons. 60 days for the creditor to respond to the applicants request for a statement of specific reasons for the adverse action (name, address, phone # of the creditor contact) 30 days if the creditor response is orally and the applicant requests the notice of adverse action in writing.

ECOA

ECOA ___ ___ ___ rule ___ days to disclose the applicants right to a statement of specific reasons. ___ days for the creditor to respond to the applicants request for a statement of specific reasons for the adverse action (name, address, phone # of the creditor contact) ___ days if the creditor response is orally and the applicant requests the notice of adverse action in writing.

30, 60, 30 30 60 30

ECOA requires a notice of the rights to receive a copy of the appraisal within ___ business days of receiving an application

ECOA requires a notice of the rights to receive a copy of the ______ within 3 business days of receiving an ________________

appraisal, application

_____ requires a notice of the rights to receive a copy of the appraisal within ___ business days of receiving an application

ECOA, 3

____requires a copy of the appraisal no later than ____ days prior to consummation

ECOA, 3

ECOA requires a copy of the_______ no later than 3 days prior to ________

appraisal, consummation

_______ requires a copy of the appraisal no later than ___ days after the date of loan denial

ECOA, 30

ECOA requires a copy of the _______ no later than 30 days after the date of loan _____

appraisal, denial

_______ documents must by retained for 25 months

ECOA

ECOA documents must by retained for ____months

_____ violations include actual and punitive damages are limited to non-government entities

ECOA

ECOA punitive damages are limited to non-government entities

ECOA punitive damages are capped to non-government entities which includes the lesser of $____ or ___% of a creditor's net worth

500,000, 1

ECOA punitive damages are capped for individuals which includes $_______ per claim

10,000

ECOA _____ damages are capped to non-government entities which includes the _______ of $500,000 or 1% of a creditor's net worth

punitive, lesser

TRID replaces the special information booklet with the ______ ___ business days after application received.

Tool Kit (TRIO), 3

TRID replaces the special information booklet with the Tool Kit (TRIO) 3 business days after application received.

special information booklet, application

_____ replaces the special information booklet with the Tool Kit (TRIO) 3 business days after application received.

TRID

A revised ___is never disclosed after the CD

A revised LE is never disclosed the same day the ___

Revised LE must be 3 _____ biz days before closing

precise

Add __ precise business days when mailing or filing electronicallly and disclosure,

Initial LE must be disclosed 7 precise biz days before closing

Revised LE 3 ______ biz days after CIC

general

Revised CD disclosure 3 ____ biz days when APR exceeds 0.___% or finance charge exceeds $___ of LE

precise, 0.125%, $100

Revised LE postpones closing ___ precise biz days, 7__ days if mailed unless the applicant acknowledges receipt earlier

4, 7

From LE to closing minimum ___ precise biz days

From LE to closing minimum 7 _____ biz days

Precise

LE terms are valid for ___ biz days

RESPA and TILA = __________________ booklet

special information

TRID = _________________booklet

Tool Kit (TRIO)

Servicing disclosure, RESPA section __, ___ days after application

6, 3

RESPA requires the special information booklet for closed-end transactions when a creditor makes 5 or fewer loans annually.

RESPA, closed. fewer

____ requires the TOOL KIT for ___-end transactions when a creditor makes 5 or ____ loans annually.

TRID, closed, more

GFE is a _____ requirement

RESPA

Early TIL is a ____ requirement

TILA

Homeowner's counseling list is disclosed __ biz days after _______

3, application

_____ valid application A-Address L-Loan Amount I-Income E-Estimated Value N-Name S-Social Security #

TRID

TRID valid application A-_____________ L-Loan Amount I-Income E-Estimated Value N-Name S-Social Security #

Address

TRID valid application A-Address L-________________ I-Income E-Estimated Value N-Name S-Social Security #

Loan Amount

TRID valid application A-Address L-Loan Amount I-____________________ E-Estimated Value N-Name S-Social Security #

Income

TRID valid application A-Address L-Loan Amount I-Income E-________________ N-Name S-Social Security #

Estimated Value

TRID valid application A-Address L-Loan Amount I-Income E-Estimated Value N-_________ S-Social Security #

Name

TRID valid application A-Address L-Loan Amount I-Income E-Estimated Value N-Name S-_________

Social Security #

Only the __________ fee can be collected before the LE

credit report

_______________________ explains the LE and the CD

Tool Kit

Tool Kit explains the __ and the __

LE, CD

RESPA section 4 states Reverse mortgages disclosures and creditors with 5 or less annually include ______ and _________

HUD1 and HUD1 A

In addition to closed-end loans, also receiving LE and CD include ______loans, ____ land and land more than _____acres

construction, raw, 25

____th = 0.125%

1/8

1/8th = _____%

1.125

A final TIL is received ____

at closing

Under ___, additional ____ days are required when APR changes by 1/8 or 0.125%, loan program changes or a pre-payment penalty is added.

TRID, 3

Under TRID, additional 3 days are required when APR changes by 1/__ or 0.125%, loan program changes or a pre-payment penalty is added.

8, 0.125

Under TRID, additional 3 days are required when APR changes by 1/8 or 0.125%, ____________________ changes or a pre-payment penalty is added.

loan program

Under TRID, additional 3 days are required when APR changes by 1/8 or 0.125%, loan program changes or a _______________ is added.

pre-payment penalty

T/F a CD can change after consummation

RESPA is generally associated with CFR _____

1024

ECOA is generally associated with CFR _____

1002

TILA is generally associated with CFR _____

1026

________ = fairness in the application process _________ = fairness in the extension of credit in housing ________ = patterns of discrimination

ECOA FH Act HDMA

CFR 1002 = ______

ECOA

CFR 1024 = _____

RESPA

CFR 1026 = _____

TILA

________ Title VII of the Consumer Credit Protection Act

ECOA

ECOA Title ____ of the Consumer Credit Protection Act

VII

ECOA Title VII of the _______________

Consumer Credit Protection Act

ECOA prohibits discrimination on the basis of receiving __________

government assistance

Elderly means age ____ or older

"unmarried" are those who are _______, ________, _______

divorced, single or widowed

A creditor (hall/shall not) inquire whether income stated in an application is derived from alimony, child support, separate maintenance payments

shall not

Fair Housing Act Title ____ of the ____ Civil Rights Act Sec. ___

VIII, 1968, 800

_____________________ Title VIII of the 1968 __________________ Sec. 800

Fair Housing Act, Civil Rights Act

_____ prohibitions include: Blockbusting Familiar Status Handicap Redlining Reverse Redlining Steering

FH Act

FH Act defines ______as a practice that realtors use to scare homeowners to sell their properties at a deflated price because members of another race, nationality, color are moving in,

blockbusting

_____ added handicapped to its protections in ______

FH Act, 1988

_____ added familiar status to its protections in ______

FH Act, 1988

race, color, national origin, sex and religion is common to

ECOA and FH Act

handicap and familiar status is common to

FH Act

Age, martial status, income from public assistance and existing rights under the CCPA are common to

ECOA

identifying discriminatory lending patterns is common to

HDMA, reg C

_____ assists public officials on distributing public sector investments in a manner deigned to improve the private environment

HDMA, reg C

______ determines whether institutions are serving the housing needs of the communities and neighborhoods in which they are located

HDMA, reg C

_________ requires institutions to compile and report to regulators some information obtained and generated on applications regarding patters of discrimination

HDMA, reg C

__________ requires institutions to report lending data to their supervisory agencies on a loan-by-loan and application-by-application basis by way of a "register" reporting format.

HDMA, reg C

HDMA, reg C regards a bank, savings association or a credit union as a ________________________

depository institution

MSA aka

metropolitan statistical area

HDMA states a depository institution must have a home or branch office in a ____ prior to ________of the previous colander year originated 1+ home loan on the ___ lien or a refinance of a 1-4 unit _______ dwelling

MSA, December 31st, 1st, family

A _________________ institution is federally insured or regulated

depository

A ___________________ institution intends to sell loans to a GSE

depository

A ___________ institution prior to December 31st the prior year originated at least _____ open-end lines of credit

depository, 200

A ___________ institution prior to December 31st the prior year originated at least _____ closed-end lines of credit

depository, 25

A ___________ institution prior to December 31st the prior year originated at least 200 _____-end lines of credit

depository, open

A ___________ institution prior to December 31st the prior year originated at least 25 _____-end lines of credit

depository, closed

HDMA states a non-depository institution must have a home or branch office in a ____ prior to ________of the previous colander year and received applications for loan origination or refinancing for _____ or more 1-4 unit family dwellings.

MSA, December 31st, 5

A ___________ institution prior to December 31st the prior 2 years originated at least _____ open-end lines of credit

non-depository, 200

A ___________ institution prior to December 31st the prior 2 yearsoriginated at least _____ closed-end lines of credit

non-depository, 25

A ___________ institution prior to December 31st the prior 2 years originated at least 200 _____-end lines of credit

depository, open

A ___________ institution prior to December 31st the prior 2 years originated at least 25 _______-end lines of credit

closed

____ reports: Loan purpose (purchase, refi, improvement) lien status (1st, 2nd) occupancy (principal or investment)

HDMA

______ require the reporting of: ethnicity race sex income

HDMA

ECOA allows the collection for data for monitoring purposes under ______

HDMA

HDMA requires rate spread information reported when the APR exceeds the prior week APOR by ___% on 1st liens and ___% on 2nd lien when locked.

HDMA, 1.5%, 3.5%

Excluded from ____ rate spread calculations are Incomplete apps withdrawn apps denied, or approved, but not accepted apps purchase loans home-improvement loans not secured by any dwelling loan assumptions HELOCS loans not subject to TILA Reg Z

HDMA

LAR aka

Loan/Application Registar

____ must be submitted to the Federal Reserve by March 1, the following calendar year.

HDMA-LAR

HDMA-LAR must be submitted to the ________ by _______, the following calendar year.

Federal Reserve, March 1

Modified HDMA-LAR must be made by _____ or within ___ days for requests after March 1st.

March 31st, 30

HDMA-LAR docs must be retained for ___ years

commissions and incentive income more than 25% require a ___ year history

Alimony, social security, child support must support a ___ year of continuance

The Dodd Frank Act mandated the ______/______ rule

Ability to Repay (ATR)/Qualified Mortgage (QM)

What mandated the Ability to Repay (ATR)/Qualified Mortgage (QM)

Dodd Frank Act

There are ___ factors under the ATR rule

8 ATR factors: 1. ______________ 2. Employment status 3._________________ 4. Simultaneous loans on the same dwelling 5. TIA payments 6. Debt obligations (installment, revolving, mortgages) 7. DTI 8. Credit History

Expected income and assets, Outstanding mortgage payments (fully indexed or fully amortized

8 ATR factors: 1. Expected income and assets 2. ___________ 3. Outstanding mortgage payments (fully indexed or fully amortized) 4.______________________ 5. TIA payments 6. Debt obligations (installment, revolving, mortgages) 7. DTI 8. Credit History

Employment status, Simultaneous loans on the same dwelling

8 ATR factors: 1. Expected income and assets 2. Employment status 3. Outstanding mortgage payments (fully indexed or fully amortized) 4. Simultaneous loans on the same dwelling 5. _________________ 6. Debt obligations (installment, revolving, mortgages) 7. ______________ 8. Credit History

TIA payments, DTI

8 ATR factors: 1. Expected income and assets 2. Employment status 3. Outstanding mortgage payments (fully indexed or fully amortized) 4. Simultaneous loans on the same dwelling 5. TIA payments 6.__________________ 7. DTI 8. _________________

Debt obligations (installment, revolving, mortgages), Credit History

If a consumer can prove in court that the loan did not meet ATR requirements the consumer is entitled to ___ years finance charges plus ______________ fees

3, attorney

ATR claims must be filed within ___ years from consummation

_______ mortgages are loans that do not contain any risky features

4 types of Dodd Frank Qualified Mortgages 1. _________________________________ 2. Seasoned 3. Small Creditor 4. Balloon

General

4 types of Dodd Frank Qualified Mortgages 1. General 2. __________________ 3. Small Creditor 4. Balloon

Seasoned

4 types of Dodd Frank Qualified Mortgages 1. General 2. Seasoned 3. ______________________ 4. Balloon

Small Creditor

4 types of Dodd Frank Qualified Mortgages 1. General 2. Seasoned 3. Small Creditor 4. ____________________

Balloon

_________ and _______ QMs can be originated by all lenders

general, seasoned

General and seasoned QMs can be originated by all lenders

Small creditor and balloon QMs can be originated by small creditors operating primarily in ____ areas

rural

__________ and _________ QMs can be originated by small creditors operating primarily in ____ areas

small creditor, balloon

All QMs have 4 features and limitations: 1. _______________ 2. No interest only 3. Max term 30 years 4. Points and fees limited to 3% for loans > or = $124,331

No neg-am

All QMs have 4 features and limitations: 1. No neg-am 2. No ________________________ 3. Max term 30 years 4. Points and fees limited to 3% for loans > or = $124,331

interest only

All QMs have 4 features and limitations: 1. No neg-am 2. No interest only 3. _______________________ 4. Points and fees limited to 3% for loans > or = $124,331

Max term 30 years

All QMs have 4 features and limitations: 1. No neg-am 2. No interest only 3. Max term 30 years 4. Points and fees limited to ____% for loans > or = $_______

3. 124,331

General QM underwriting requires borrower's qualifications using the maximum rate within first ___ years

_____________ QM underwriting requires borrower's qualifications using the maximum rate within first ___ years

General, 5

General QM underwriting requires limits of APR over prior week APOR by less than ____% as of the date of the lock.

2.5

_____ QM underwriting requires limits of ____ over prior week APOR by less than 2.5% as of the date of the lock.

General QM, APR

General QMs must meet a fully ___________ schedule

amortized

To receive safe harbor for a seasoned QM, at the end of the 36 months, the loan must: 1. __ year max term 2. ___ rate 3. full amortized 4. no _____ payments 5. max __% points and fees 6. 2 max 30-day lates 7. no 60 day lates 8. 8 QM qualifying factors met

30, fixed, balloon, 3

The seasoning period for a seasoned QM is ____ months

To receive safe harbor for a seasoned QM, at the end of the 36 months, the loan must: 1. 30 year max term 2. fixed rate 3. full _______ 4. no balloon payments 5. max 3% points and fees 6. __ max 30-day lates 7. no ___ day lates 8. __ QM qualifying factors met

amortized, 2, 60, 8

If a consumer closes on a loan that is QM loans is not a HPML, the loan is in ___________

safe harbor

QM loans that are HPML that are open for dispute and can be challenged in court are non-_____ ______

safe harbor

HPML loans, section ___, exceeds the APOR by ____% APR for lien 1

1.5%

HPML loans, section ___, exceeds the APOR by ____% APR for lien 2

3.5%

APOR aka

Average Prime Offer Rate

__________ is the average of all the APR rates in the US for the previous week, published the next week, when rates are locked.

Average Prime Offer Rate

HOEPA exclude: 1. ______ Mortgages 2. _________ loans

Reverse, COnstruction

HOEPA includes: 1. _________-money mortgages 2. ____________ 3. ________-end HEQ 4. __________-end HELOCS

purchase refinances closed open

HOEPA 3 tests: 1. ______ 2. _______ and _______ 3. __-___________ peanalty

APR points and fees pre-payment

HOEPA APR coverage, a loan is high cost when: 1. APR > ___% of APOR on lien 1 2. APR > ___% of APOR on lien one <$50,000 3. APR > ___% of APOR on lien 2

6.8% 8.5% 8.5%

HOEPA points and fees test, a loan is high-cost of points are > __% loan amount for loans > than $24,866

HOEPA points and fees test, a loan is high-cost of points are > 5% loan amount for loans > than $________

24,866

HOEPA points and fees test, a loan is high-cost of points are > ___% loan amount or $_____or loans < $24,866

8%, $1243

HOEPA points and fees test, a loan is high-cost of points are > 8% loan amount or $1243 for loans < _______

$24,866

HOEPA pre-payment penalty test , a loan is high cost when a pre-payment penalty is executed more than ____months after closing

36 months

HOEPA pre-payment penalty test , a loan is high cost when a pre-payment penalty is > than __% of amount _________

2%, prepaid

Prior to making a _________________, the consumer must produce written evidence that they received home ownership counseling

high-cost mortgage

Prior to making a high-cost mortgage, the consumer must produce written evidence that they received______________________

home ownership counseling

A MLO cannot _______ the consumer into a particular counseling agency

steer

The consumer must have received the _____ before home ownership counseling

A list of homeownership counselors is required to be provided to all federally related loan applications with in ___ days of receiving the application

A minimum of ___ counseling services must be provided through the ____ or _____websites and the list cannot be more than ____ days old.

10, CFPB, HUD 10

HOEPA loans _________ homeownership counseling while all federally related loans do ____ ______ counseling but require a ______ of counselors

require, not require, list

HOEPS loans must meet Dodd-FRank _____ requirements

QTR

HOEPS loans cannot charge more than __% of the past due for late payments

HOEPA mandates ____ Neg-am and ____ rate increase after default

no, no

HOEPA requires the disclosure ___ days before closing that the borrower does not have to continue and sign the loan

HPML APR coverage, a loan is high cost when: 1. APR > ___% of APOR on lien 1 2. APR > ___% of APOR for jumbos 3. APR > ___% of APOR on lien 2

1.5 2.5 3.5

HMPL requires escrows for taxes and insurance required for non-QM HPML loans

HPML pre-payment penalties not allowed following ___ years past consummation and if payments are scheduled to change in the first ___ years

2, 4

ALL HOEPA loans that exceed APR thresholds are ALSO _____ and must meet ______ guidelines as well

HPML, HPML

MLOs may be compensated for the amount of credit extended, but not for any loan ____

terms

A MLO can/cannot be compensated on interest rate, APR, origination fees

cannot

MLO compensation records must be retained for ____ years

Can the borrower pay for his/her appraisal at the door?

Can the borrower, agent or MLO select the appraiser?

This guarantees that comps will be similar to the subject property

gross adjustment

The value of a comp, or gross adjustment, is limited to ___%, while net adjustments are limited to ___%

25, 15

_____ and _____ analysis addresses the economic setting of the property and the market forces that might affect the value

Geographic and market analysis

The internal and external factors that could impair the ability to sell a property on an appraisal

functional obsolescence

CRV aka

certificate of reasonable value

HVCC aka

Home Valuation Code of Conduct

_______ was a result of a Fannie Mae settlement with NYC to improve appraisal independency, later replaced with Dodd-Frank

Home Valuation Code of Conduct

Uses comps to determine value of subject property and generally used in an established environment where sales have taken place

Sales Comparison or Market value approach

Determines the cost to rebuild. Generally used in an insurance claim

Cost approach

Used with a loan relating to investment property. Appraiser determines the fair market rental value of the subject property

Income approach

Form 1004

URAR, interior and exterior inspection of a single unit family dwelling

URAR aka

Uniform Residential Appraisal Report 1004

Form 2055

external appraisal reports, drive-bys

Form 1073

Condominium internal and external reports

Appraisals last for ____ days

120

Appraisal Laws Copy no later than 3 days prior closing Appraiser cannot be paid at the door Parties cannot select the appraiser Must be state license/cerified Must carry an errors and omissions insurance Denied borrower gets a copy

ECOA/Dodd-Frank Dodd-Frank Dodd-Frank Fannie Mae Fannie Mae ECOA

This person serves as an unbiased entity that generates a binding decision

arbitrator

A person who transfers rights

Assignor

A person whom rights are being transfered

assignee

This person is written proof of attorney to act on behalf of the principal

attornet-in-fact

Maximum seller contributions my/may not exceed closing costs and prepaids

may not

Conventional limits for seller contributions for loans greater than 90% LTV are __%

A refinance that only reduces the rate and/or term of the loan

rate and term refinance

A refinance that allows $2000 or 2% cash back, whichever is lower

Limited cash-out refinance

Removing cash from the equity, including a debt consolidation loan

Cash-out refinance

4 laws relating to advertising in the Mortgage Industry: TILA aka ________ MARS aka _______ MAP aka ________ TSR aka _______

Truth in Lending Act, Reg Z Mortgage Assistance Relief Service, Reg O Mortgage Acts and Procedures, Reg N Telemarketing Sales Rule

Trigger terms are regulated by

TILA

Misleading terms, "Free money" for HELOCS, fixed APRS are banned by

TILA

Misleading ads of fixed rates and payments, government endorsements, claims of debt elimination, "counselor" and foreign language violate

TILA

Disclosures that are required from APR, interest rates, terms, loan amounts are required by

TILA

The ____________ regulations relating to advertising include prohibitive actions and special disclosures to ensure that consumers are not misled relating to the ability of services and their rights under the law