Federal Mortgage Related Laws Flashcards
The Good Faith Estimate disclosure form is used primarily for ______ transactions
Reverse Mortgage
The disclosures related to the transfer of ______ are required for first mortgage liens of
federally related mortgage loans, including all refinancing transactions of such loans.
Mortgage Servicing
________ sets limits on the amounts that a lender may require a borrower to put into an
escrow account for purposes of paying taxes, hazard insurance, and other charges related
to the property.
RESPA Section 10
The Real Estate Settlement Procedures Act is administered and enforced by the _____.
Consumer Financial Protection Bureau (CFPB)
Payments in excess of the reasonable value of goods provided or services rendered are considered
______.
Kickbacks
If a lender has either an affiliate relationship or a direct ownership interest of more than
one percent in a provider of settlement services and they directly refer business to the provider,
it is per Regulation X a _____.
Affiliated Business Arrangement
Any person or persons who violate the provisions of ________ shall be fined not more
than $10,000 or imprisoned for not more than one year, or both.
RESPA Section 8
RESPA is applicable to all ________ mortgage loans.
Federally Related
Regulation X requires the ____________must be provided at settlement, or within 45
calendar days of settlement.
Initial Escrow Settlement Statement
The ______ is the cost of a borrower’s credit calculated as an annual rate.
APR
Regulation Z requires an HPML creditor to obtain a second written _____ based on an
interior inspection of the property, at no cost to the borrower, in connection with certain
flipped properties.
Appraisal
Rescission business days are defined by Regulation Z to include all calendar days except
_____.
Sundays and Federal Holidays
Regulation Z provides a presumption of compliance with the ability-to-repay requirement
for creditors making _______.
Qualified Mortgages
TILA requires mortgage loan originators to make certain material disclosures on loans
subject to the RESPA within __________ after receipt of a written application.
3 Business Days
Section 32 loans are also known as ____ loans.
High-Cost
The Truth in Lending Act’s advertising provisions require that if an advertisement contains
a ____, then it must also include a number of prescribed disclosures.
Triggering Term
The category of _____ mortgage loans is defined as a consumer credit transaction that
for first-lien loans are 1.5 percentage points above the average prime offer rate issued by
Freddie Mac.
Higher-Priced
An essential requirement under TILA is that no loan originator shall receive, directly or
indirectly, ______ for a consumer purpose loan secured by a dwelling that is based on terms
of a transaction.
Compensation
The Truth in Lending Act permits a borrower to assert a defense to foreclosure against a
creditor when there is a violation of the ____ and the ability to repay provisions.
Anti-Steering
A lender must notify an applicant of action taken on the applicant’s request for credit, whether favorable
or adverse, within
30 days after receiving a completed application
When a lender takes adverse action in response to an application for credit (e.g., denies the application),
the lender must notify the applicant in writing
within 30 days of the date of credit denial
The lender must provide the name and contact information of the outside source used in the credit
decision The applicant has
60 days from receipt of the adverse action notice to make their request for the information.
An outside source has how many days after receiving the applicant’s request to disclose the requested information.
The outside source of information has 30 days
What must be included in an Adverse Action Notice
Part I – PRINCIPAL REASON(S) FOR CREDIT DENIAL, TERMINATION, OR OTHER ACTION TAKEN CONCERNING CREDIT.
Part II— DISCLOSURE OF USE OF INFORMATION OBTAINED FROM AN OUTSIDE
SOURCE.
