Federal Laws Flashcards
Pre-Empted states’ rights to limit loans to fixed rate mortgages and allowed ARMS
AMPTA
Alternative Mortgage Transaction Parity Act
AMPTA
AMPTA
Alternative Mortgage Parity Transaction Act
1982 pre-empted states’ rights to limit pre-payment penalties and late fees, allowed ARMS
AMPTA
pre-emption over prepayment penalties lifted in 2002
AMPTA
Reg D
AMPTA
AMPTA reg
D
AMPTA reg authority
CFPB
BSA/AML
Bank Secrecy Act/Anti Money Laundering
Bank Secrecy Act/Anti Money Laundering
BSA/AML
requires reporting of cash in excess of $10k
Bank Secrecy Act/Anti Money Laundering
Requires a reporting program under FINCEN
Bank Secrecy Act/Anti Money Laundering
DIDMCA
Depository Institutions Deregulation Monetary Control Act
deregulated interest rates
Depository Institutions Deregulation Monetary Control Act
regulating agency for BSA/AML
US Dept of Treasury
Do Not Call Improvement Act
DO NOT CALL
Do Not Call Improvement Act regulatory agency
FTC
FTC
Federal Trade Commission
FTC enforces_______
Do Not Call Improvement Act
Limits mortgage companies from contacting a client who is on the national DNC registry
Do Not Call Improvement Act
DNC limits up to _________ months after the last transaction with the mortgage company for clients
18
DNC limits up to __________ months after a client makes an inquiry
3
If a person does not want a call back from a mortgage company______
place the person on a DNC list
DNC fines can be $________________ per violation
$50,120
$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 _____
B
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
30
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
30
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
25
What reg requires record retention for 25 months?
ECOA
FCRA is
`Fair Credit Reporting Act
`Fair Credit Reporting Act is reg ___________
V
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
V
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
V
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 ___________
V
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
4
____________ 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
1
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
1
___________ 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
7
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
26
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 ____
P
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
P
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
P
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 _____
P
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 ____
P
privacy rights, sensitive information are addressed in ______ Act
GLBA
Regulation ____ Covers pretexting, which relates to getting information through false means
P
_________ 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
P
_____ Regulation P maximum fine is $10,000 per individual and $100,000 per company
GLBA
GLBA violation prison term may be up to ______ years
5
Regulation P violation prison term may be up to _______ years
5
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 _______
C
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
C
______ 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
C
_______ regulation C deals with MSAs
HDMA
HDMA regulation ______ deals with MSAs
C
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.
previous
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.
C
______ 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
F
T/F HDMA does not includes pre-qualifications
T
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 _____
C
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 _________.
Z
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 _____
32
HOEPA section 10__.___ of Reg
26.32, Z
Addresses predatory lending
HOEPA
Section ___ addresses certain deceptive and unfair practices in home equity lending
32
_______ 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
32
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
5
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
8
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.
36
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.
2
T/F HOEPA allows fees for modification
F
T/F Most payoff statements are banned
T
HOEPA late fees are limited to ___% of the past-due payment
4
T/F HOEPA allows for neg-am
F
T/F HOEPA allows for rate increases after default
F
T/F Contractors are barred from receiving direct payments from a HOEPA loan
T
T/F No refinancing a high-cost mortgage into another high-cost mortgage w/in 1 year of extending credit
T
T/F All HOEPA loans must meet ATR, Dodd-Frank requirements
T
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
5
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
Z
High Priced Mortgage Loans or HPML is part of TILA Regulation Z, 10_______.35, known as Section 35
26
High Priced Mortgage Loans or HPML is part of TILA Regulation Z, 1026._______, known as Section 35
35
High Priced Mortgage Loans or HPML is part of TILA Regulation Z, 1026.35, known as Section 3_______
35
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
35
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
T/F HPML appraisal require interior and exterior appraisals
T
T/F HPML appraisals should only include exterior
F
T/F HPML appraisals are not required if the seller acquired the property in less than 90 days
F
HPML additional appraisals must be paid by the lender
T
HPML prepayment penalties are limited to first ____ years
2
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
78
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.
80
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
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 AMPTA
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)
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 SAFE (non depository)
Regulation_______is SAFE (depository)
Regulation_______is AMPTA
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 _____
N
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
F
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 ____
O
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
A
Zones with a A or _________ designation require flood insurance
V
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
E
Zone E does/does not require flood insurance
does not
RESPA is Reg ____
X
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 _____
Z
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
3
_______ 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
60
______ 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
1
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
3
______ 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
3
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 _____
10
_____ 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
5
________ 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
2
________ 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
12
________ 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 ______
6
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
60
________ 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
25
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
15
________ 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
15
________ 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
3
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
20
______ 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
2
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
1
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
30
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.
20
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.
45
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.
T
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.
T
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.
T
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 = ____).
3
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
F
______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,
24
The Statement on Subprime Lending defines an individual as a credit risk if their credit history reflects bankruptcy within the previous _____ years,
5
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.
T
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.
T
_____-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.
T
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.
T
_____ 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.
3
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.
H
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/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
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.
F
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.
T
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”.
T
________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
30
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.
30
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
F
Points are calculated based on the _____ _______
loan amount
T/F an immediate family member consists of adopted children
T
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
F
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
F
T/F The disclosure of alimony, child support, and separate maintenance income is never mandatory, court ordered or not
T
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 ___
V
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
