Federal Mortgage-Related Laws Flashcards
1
Q
What Act became effective June 20, 1975, with the purpose of helping consumers become better shoppers for settlement services?
A
Real Estate Settlement Procedures Act
2
Q
As set forth by Regulation X, which of the following is NOT a condition required for a person licensed and able to perform both the services of an MLO and real estate broker?
A
The individual must provide a bundled services discount to the party for the services.
3
Q
Regulation B sets forth that in any system of evaluating creditworthiness, a creditor may consider the age of an elderly applicant when such age is used to favor the elderly applicant in extending credit. As defined and used in Regulation B, which of the following defines elderly?
A
age 62 or older
4
Q
Regulation Z defines the ____ as the cost of consumer credit as a dollar amount.
A
finance charge
5
Q
As set forth by Section 32 of Regulation Z, a high-cost mortgage must NOT include ____ unless the loan has a maturity of 12 months or less because it is being used as a bridge loan.
A
a balloon payment
6
Q
Which fee can be included in the terms of a mortgage loan that must adhere to the loan term restrictions of Regulation Z, Section 32 and/or Section 35?
A
late fee
7
Q
The _____ is responsible for enforcing the high-cost loan provisions set forth by the Home Ownership Protection Act through Regulation Z, Section 32.
A
Consumer Financial Protection Bureau
8
Q
In order for a junior mortgage on a primary residence to be considered a higher-priced loan, the APR must exceed the applicable average prime offer rate by at least
A
3.5%.
9
Q
One of the most critical points of the Loan Originator Compensation Rule is the prohibition of the practice of
A
steering.
10
Q
What does TRID stand for?
A
TILA-RESPA Integrated Disclosure Rule
11
Q
The TILA-RESPA Rule applies to
A
home equity loans.
12
Q
As part of the loan application process, for HMDA reporting purposes lenders are to collect information on the applicant’s
A
race, sex, and ethnicity.
13
Q
Regulation C implements the
A
Home Mortgage Disclosure Act.
14
Q
According to the Fair Credit Reporting Act, seven years is the maximum length of time information can be reported on a credit report, EXCEPT for a
A
bankruptcy filing.
15
Q
As set forth by the BSA/AML Act, with regard to electronic funds transfer transactions, a SAR must be filed for transactions aggregating _____or more regardless of potential suspects.
A
$25,000
16
Q
Which financial arrangement is EXEMPT from the Real Estate Settlement Procedures Act?
A
temporary transaction
17
Q
The legislation that sets out specific procedures and guidelines for closing and settlement procedures is
A
RESPA.
18
Q
To stay in compliance with the Equal Credit Opportunity Act and Regulation B, if Juan applied for a loan on March 1 and XYZ Mortgage Company rejected his loan application on March 5, XYZ must send Juan a written explanation of its decision by
A
March 31.
19
Q
TILA, as implemented by Regulation Z, sets forth recession requirements for mortgage loans. Which statement is FALSE specific to these requirements?
A
The right of rescission period always begins on the day of loan consummation, even if the actual notices are provided to the borrowers after consummation.
20
Q
What Regulation ensures that some borrowers have the right of rescission for three business days after a loan contract is signed?
A
Regulation Z
21
Q
As set forth by Regulation Z, Section 32, what is NOT a trigger used to define a high-cost mortgage loan?
A
excessive prepayment penalty
22
Q
Which of these is NOT a prohibited loan term for a high-cost loan?
A
mandatory escrow account
23
Q
What law defines a high-cost mortgage loan, also known as a Section 32 loan?
A
Home Ownership and Equity Protection Act
24
Q
In Section 35 of Regulation Z, which implements TILA, all of the following are thresholds that define a mortgage loan as higher-priced EXCEPT
A
loan exceeds the APOR by 2.5% for a first mortgage lien
25
According to Regulation Z, creditors granting loans meeting HOEPA higher-priced mortgage loan criteria may not assess late fees in excess of ___ of past due payments or pyramid late fees.
4%
26
The ____ consolidates four disclosure forms into two forms for closed-end credit transactions secured by real property.
TILA-RESPA Rule
27
The annual escrow account statement must include an explanation of how any surplus is being handled by the servicer. If the surplus is less than ____, the servicer may refund such amount to the borrower or credit such amount against the next year's escrow payments.
$50
28
A notification that appears in a consumer's credit file instructing lenders to take extra steps to verify the consumer's identity before processing a loan application is called a(n)
fraud alert.
29
The Safeguards Rule, within the GLB Act, requires companies to
develop a written information security plan to ensure the security and confidentiality of customer records.
30
Within three business days after a lender receives a complete mortgage loan application, the lender must provide the applicant with a written list of homeownership counseling organizations that includes a minimum of ____ HUD-approved housing counseling agencies in the applicant's area.
ten
31
Regulation X sets forth that when a servicer receives a loss mitigation application at least ___ days before a foreclosure sale, the servicer must promptly review the application to determine if it is complete.
45
32
Which act requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application?
Equal Credit Opportunity Act
33
The Equal Credit Opportunity Act is implemented by
Regulation B.
34
According to the Truth in Lending Act, a borrower closing on what loan type must be given notice of the right to rescind the loan?
owner-occupied refinance
35
The purpose of ____ is to promote the informed use of consumer credit by requiring disclosures about its terms and cost to ensure that consumers are provided with greater and more timely information on the nature and costs of obtaining credit extensions.
TILA
36
A $100,000 mortgage loan will be considered a Section 32 high-cost loan if the points and fees are greater than
5% of the loan amount.
37
Which of these is NOT a requirement for a high-cost loan subject to the terms and provisions of Section 32 of HOEPA?
mortgage insurance
38
The Red Flags Rule that requires certain businesses and organizations to develop, implement, and administer an identity theft prevention program is part of what federal law?
Fair and Accurate Credit Transactions Act.
39
On the Closing Disclosure, the Calculating the Cash to Close section on Page 3 must list figures from the most recent Loan Estimate. In addition to indicating if there is a change, the change must be explained and, if there is a tolerance cure, it must be shown as a ____ in Section J on Page 2.
Lender credit to the borrower
40
Lenders submit Loan/Application Registers in order to comply with what law?
HMDA
41
As set forth by Regulation Z, before enforcing an acceleration clause that appears as part of the mortgage, lenders must wait until payments are delinquent at least ____ days.
120
42
When completing a Loan Estimate, where should a licensed mortgage loan originator include an estimate of hazard insurance premiums?
Prepaids
43
The Loan Estimate and Closing Disclosure both have Section F Prepaids, Section G Initial Escrow Payment at Closing, and Section H Other. There is a(n) ______ tolerance for change for the costs in these three sections.
Unlimited
44
On the Loan Estimate, broker fees paid directly by the borrower must be
Itemized separately from other originations fees
45
While it is illegal to ask or consider the race or ethnicity of an applicant, which federal legislation requires that this information be requested from every applicant?
Home Mortgage Disclosure Act
46
Regulation B requires that applicants must be made aware of their right to receive an appraisal report created as the result of their mortgage loan application. This disclosure must be mailed or delivered to applicants not later than ___ business days after the lender receives a complete application.
3
47
What type of loan is NOT reportable under HMDA?
Loans used primarily for agricultural purposes
48
A credit report contains the following types of information EXCEPT
Employment and income history
49
As defined and used throughout FCRA and Regulation V, _____ means any person who regularly extends, renews, or continues credit; any person who regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who participates in the decision to extend, renew, or continue credit.
Creditor
50
Which statement is TRUE as it relates to how a lender determines if the settlement charge goes on the Closing Disclosure in Section B (Services Borrower Did Not Shop For) or Section C (Services Borrower Did Shop For)?
If borrower Ellie chose the provider from a written list, the fee goes in Section B of the CD
51
HMDA
Aids in identifying discriminatory lending patterns.
52
Which statement is NOT a requirement set forth by TRID specific to who is to provide and be listed in the creditor's information section of the Loan Estimate (LE) as a creditor?
If a mortgage broker is completing the LE, use the name of the mortgage broker
53
As it relates to TRID requirements for providing a Loan Estimate (LE) to an applicant, what statement is FALSE?
If a consumer only requests a pre-approval and provides 6 0f 6 elements of a complete application, the MLO is not obligated to provide a LE
54
What type of loan is NOT reportable under HMDA?
Loans used primarily for agricultural purposes
55
As set forth in Regulation V, if a consumer files a Chapter 7 bankruptcy, the consumer will probably have to wait ____ years for the negative credit information to drop off credit reports.
10
56
As defined and used throughout Regulation Z when referring to the delivery requirements for a Loan Estimate and Closing Disclosure, _____ means the time that a consumer becomes contractually obligated on a credit transaction.
Consummation
57
The main purpose of the Fair Credit Reporting Act is to
Create reasonable procedures to ensure the confidentiality and accuracy of consumer credit information
58
Who is NOT subject to Section 114 of the Fair and Accurate Credit Transactions Act that sets forth the identity theft red flags rule?
Doctors
59
The primary purpose of the FACT Act is to
Protect consumers from identity theft
60
According to the Fair and Accurate Credit Transactions Act, which situation would NOT be a valid reason for a consumer to add a fraud alert to a credit report?
A woman who changes her name after a divorce
61
The Home Mortgage Disclosure Act provides the data for tracking lender compliance with the provisions of the Fair Housing Act and the
Equal Credit Opportunity Act
62
The servicer must notify the borrower at least ____ during the escrow account computation year if there is a shortage or deficiency in the escrow account.
Once
63
According to the FCRA, all of the following would have a business need for accessing a consumer's credit reports EXCEPT a(n)
Private club making a decision about a person's membership eligibility
64
As set forth by the FCRA, when loan denial is based on information in a consumer report from a consumer credit reporting agency, the ____ must include a disclosure of a numerical credit score.
Statement of Adverse Action
65
Which federal legislation requires that, in cases where an application is taken in person and the applicant does NOT wish to provide information specific to his ethnicity, an MLO must make a visual determination and/or use a surname as the basis for this determination?
Home Mortgage Disclosure Act
66
Per the Telemarketing Sales Rule, a loan servicer cannot call a customer later than ___ days after a customer's name is included on the National Do Not Call Registry.
31
67
The Telemarketing Sales Rule established
Appropriate legal cold calling hours
68
Regulation P, which implements the Financial Privacy Rule of the GLB Act, sets forth requirements for delivering the Privacy Policy notice to consumers. Which of the following is NOT an acceptable method for delivering the Privacy Policy notice?
Post a sign with the privacy policy in each branch or office
69
For how many months after a loan closes may a mortgage loan originator call to solicit new business from a customer whose phone number is on the National Do Not Call Registry?
18 Months
70
What rule within the GLB Act governs the collection and disclosure of nonpublic personal information to third parties?
Financial Privacy Rule
71
Under the GLB Act, regulated by Regulation P, customers must receive a loan servicer's privacy notice ____ for as long as the customer relationship lasts.
Once every year
72
The Federal Trade Commission's Telemarketing Sales Rule prohibits telemarketers from calling anyone
Before 8 am or after 9 pm
73
Lyle calls XYZ Mortgage to inquire about current rates and provides his name and phone number. Assuming that Lyle's name is on the National Do Not Call Registry, how long does XYZ Mortgage have to follow up with Lyle?
3 Months
74
Within the Gramm-Leach-Bliley Act, the Financial Privacy Rule restricts the collection and disclosure of a customers' nonpublic personal information. As set forth in this Rule, which of the following is NOT a requirement for providing a customer with a Privacy Policy notice?
The notice must provide a customer with instructions on how to opt-in to having nonpublic personal information shared within the institution
75
Money laundering prevention components of the BSA/AML Act for lenders include all of the following EXCEPT
Implementing a written identity theft prevention program
76
Ike closes a loan with Max Mortgage. His name is NOT on the National Do Not Call Registry. Max Mortgage can call Ike
Indefinitely
77
When a suspect is identified, a financial institution must file a SAR no later than how many calendar days after the date of initial detection of the facts that constitute the basis for filing a SAR?
30
78
According to the GLB Act, a person who completes a single transaction with a creditor is known as a(n)____ and is entitled to receive an initial privacy notice from a financial institution only if the company shares nonpublic personal information with companies not affiliated with it, with some exceptions.
Consumer
79
Which of the following accurately reflects the requirement specific to notifying a customer regarding the filing of a SAR?
Financial institutions are prohibited from notifying a customer for whom they have filed a SAR
80
Lender Ann must retain a SAR record for how many years after she files the report?
5 years
81
The _______ was part of the Housing and Community Development Act of 1992. The Act created a shift in money laundering policy by focusing less on the investigative power of federal agencies and placing more compliance responsibility on financial institutions.
Annunzio-Wylie Anti-Money Laundering Act
82
For an electronic funds transfer, a SAR must be filed when there is a transaction aggregating _____ or more that involves potential money laundering or violations of the Bank Secrecy Act.
$5,000
83
Due to consumer information now shared across several industries, the Gramm-Leach-Bliley (GLB) Act includes provisions in Title V to protect and regulate the disclosure of consumers' personal financial information. There are three principal parts to the Title V privacy requirements. Which of the following is NOT one of the three principal parts?
Bank Secrecy Rule
84
The ____ special home-buying programs include the Good Neighbor Next Door program and Indian Home Loan Guarantee program.
Department Of Housing And Urban Development's
85
What entity has supervisory authority over most bank and nonbank mortgage loan originators?
Consumer Financial Protection Bureau
86
The purpose of the ____ is to establish requirements for canceling and terminating private mortgage insurance.
Homeowners Protection Act
87
The Homeowners Protection Act permits a borrower to request the cancelation of mortgage insurance when the current loan balance is ______ of the original sale price or appraised value, whichever is less.
80%
88
What entity oversees the Federal Housing Administration (FHA)?
Department Of Housing And Urban Development
89
Title XIV of the Dodd-Frank Act is called the ______. This Act focuses on standardizing data collection for underwriting and imposes obligations on mortgage originators to only lend to borrowers who are likely to repay their loans.
Mortgage Reform and Anti-Predatory Lending Act
90
When PMI is required for conforming adjustable-rate mortgages, the lender must provide required PMI cancellation disclosure notices
At loan consummation
91
The USA PATRIOT Act was enacted to
Inhibit the use of money laundering to finance terrorist campaigns
92
Which of the following is NOT a function performed by the CFPB?
Improve affordable homeownership opportunities in order to support the housing market and homeownership in inner-city areas
93
Which of the following is NOT a function performed by the CFPB?
"Monthly Payments under $700.00"
94
In compliance with the E-Sign Act, how must institutions confirm consumers can access electronic documents?
Obtain consumer consent electronically
95
The ____ is a federal cabinet-level agency with a stated mission of creating strong, sustainable, inclusive communities and quality affordable homes for all.
Department of Housing and Urban Development
96
The ______ directed the Bureau of Consumer Financial Protection to integrate the mortgage loan disclosures formally under TILA and RESPA.
Dodd-Frank Act
97
To comply with Regulation N (Mortgage Acts and Practices - Advertising, 12 CFR Part 1014), a lender must maintain documents for a period of ___ months describing or evidencing all mortgage credit products available to consumers during the time period in which it made or disseminated an applicable commercial communication.
24
98
Which of the following BEST describes the purpose of the USA PATRIOT Act?
Prevent the funding of terrorist operations
99
What entity was created by the Dodd-Frank Act with the purpose of providing another level of consumer protection through its oversight of financial services?
Consumer Financial Protection Bureau
100
What Department has regulatory has enforcement authority of the Fair Housing Act?
Department of Housing and Urban Development
101
The Bank Secrecy Act was amended by the USA PATRIOT Act (Section 326) adding the requirement that financial institutions establish a written customer identification program (CIP). Which statement is FALSE as it relates to an institution establishing a CIP?
The term "financial institution" does not include a mortgage broker or loan originator
102
What method may be used by financial institutions to comply with the USA PATRIOT Act?
Implementing a Customer Identification Program
103
Which of the following is NOT a requirement of the E-Sign Act for lenders?
Lenders must provide the consumer with hardware to access records electronically
104
The _____ sets forth that if a law requires that a business retain a record of a transaction, the business satisfies the requirement by retaining an electronic record, as long as the record is accessible to people who are entitled to access it.
Electronic Signatures in Global and National Commerce Act
105
To comply with the provisions of RESPA, a lender must provide a consumer with a(n) ______ when the lender owns greater than ______ of the referred provider or has a personal interest in the provider.
AfBA Disclosure; 1%
106
According to RESPA, an Affiliated Business Arrangement (AfBA) disclosure must be provided
At or prior to the time a referral is made, if there is an AfBA
107
Which lender's act is prohibited under Section 8 of the Real Estate Settlement Procedures Act?
Receiving a payment from a settlement service provider for a referral
108
On the Loan Estimate, which of the following is ALWAYS a settlement service cost that goes in Section C as a provider service the borrower CAN shop for?
Borrower's title insurance policy
109
Adrian, a mortgage broker, referred her client to A&A Title, a company that both she and her husband Andy own. According to RESPA, Adrian must
Give full disclosure to the client at, or prior to, the time the referral is made
110
FCRA stands for
Fair Credit Reporting Act
111
Regulation X, which implements RESPA, defines ____ as a person (other than an employee of a lender) that renders origination services and serves as an intermediary between a borrower and a lender in a transaction involving a federally related mortgage loan.
Mortgage Broker
112
Page 1 of the Loan Estimate includes the name and address of the creditor. If there are multiple creditors
Use the name of the creditor completing the form
113
The Mortgage Disclosure Improvement Act requires redisclosure and an additional three business day waiting period after the consumer receives the revised disclosures before closing if there is a _____ APR change on a fixed-rate loan.
+/- .125%
114
Per Regulation B, lenders must notify applicants of an adverse action status with the required disclosures within how many days of receiving a complete application?
30
115
On the Loan Estimate, a permanent buydown of the interest rate by the borrower will show as a
Charge to the borrower
116
Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high-cost" mortgages?
Home Ownership and Equity Protection Act (HOEPA)
117
Regulation V implements what law?
Fair Credit Reporting Act
118
Per the Real Estate Settlement Procedures Act, what situation BEST describes an affiliated business arrangement that requires disclosure?
A lender/broker has an ownership interest in a settlement service provider used to process a loan for a fee in one of its transactions
119
Regulation X states that the lender or the mortgage broker generally must provide a GFE no later than ___ business days after a mortgage broker receives either an application or information sufficient to complete an application.
3
120
XYZ Mortgage encourages its borrowers to employ attorney Ed to perform title searches and related settlement services in connection with their transaction. XYZ and Ed have an understanding that in return for the referral of this business, Ed provides legal services to XYZ's officers or employees for no charge. In this scenario, who is in violation of RESPA?
Both the attorney and lender
121
A mortgage servicer must wait _____ days before it is allowed to file for foreclosure or trustee's sale if the borrower has not submitted an application for assistance.
120
122
RESPA rules and regulations apply to a
Refinance
123
Regulation X defines ______ as any service provided in connection with a prospective or actual settlement, including origination of a federally related mortgage loan including, but not limited to, rendering of credit reports and appraisals, rendering of inspections, and conducting of settlement by a settlement agent and any related services.
Settlement Service
124
As set forth by RESPA, at the time a servicer creates an escrow account for a borrower, the servicer may charge the borrower an amount sufficient to pay the charges respecting the mortgaged property, such as taxes and insurance, which are attributable to the period from the date such payment(s) were last paid until the initial payment date. The servicer may charge the borrower a cushion that must be no greater than ____ of the estimated total annual payments from the escrow account.
1/6th
125
ECOA requires that a mortgage loan originator asks about a customer's marital status in a specific way. Which is the correct way to ask?
Are you married, unmarried, or separated
126
In compliance with ECOA and HMDA, which statement does NOT accurately reflect a data collection requirement that MLO Sam must adhere to when collecting information on the ethnicity, race, and sex of applicants?
Sam can reject an application if the borrower chooses not to provide the requested information
127
For closed-end credit, Regulation B states that a creditor must provide a copy of an appraisal promptly upon completion or three business days prior to consummation of the transaction. An applicant may waive the timing of this requirement. Generally, any such waiver must be obtained at least ____ business days prior to consummation.
3
128
To comply with Regulation B, a Statement of Adverse Action must either disclose a specific principal reason for the action taken or disclose the applicant's right to request the reason(s) for denial within ____ days of receipt of the lender's notification.
60
129
As the lender looks over the borrower's loan application and is deciding whether or not to make the loan, the lender may NOT consider the
That the borrower's income is partially derived from the receipt of public assistance
130
RESPA stands for
Real Estate Settlement Procedures Act
131
To comply with the ECOA, non-taxable income such as Social Security is grossed up in order to
Treat income the same as taxable income
132
To stay in compliance with ECOA, which of the following describes the action an MLO needs to take when an in-person applicant refuses to provide ethnic, race, and gender information?
Collect that the applicant's information on the basis of visual observation or surname and report it on the URLA
133
As defined and used throughout ECOA and Regulation B, _____ means a termination of an account or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts.
Adverse Action
134
ECOA stands for
Equal Credit Opportunity Act
135
What federal legislation allows the borrower to challenge the value stated within an appraisal report?
ECOA
136
Which of the following does NOT need to be included in an adverse action notice to comply with Regulation B?
A statement explaining the applicant has 30 days to request the reason for the denial
137
The ______ prohibits discrimination in granting credit and prohibits a creditor from discouraging someone from applying for a loan on the basis of sex, age, marital status, race, color, religion, national origin, receipt of public assistance, and exercised rights under the Consumer Credit Protection Act
Equal Credit Opportunity Act
138
RESPA is implemented by
Regulation X
139
Regulation Z implements
TILA
140
The federal Truth in Lending Act
Regulates advertising with references to mortgage interest rates
141
Karen is refinancing her home that she lives in. In compliance with TILA and Regulation Z, the length of the rescission period for this mortgage loan is
Three business days including Saturday, and excluding Sunday and holidays
142
A lender is offering an ARM loan that is fixed for the first three years. When advertising that ARM loan, the word "fixed"
Must be accompanied by the fixed time period
143
Greg calls to ask about an advertised mortgage loan offer. How does TILA require that an MLO quote an interest rate to him?
The APR as well as the interest rate
144
Which statement does NOT trigger TILA advertising disclosure requirements if it appears in an advertisement?
"No down payment"
145
Seller contributions are closing costs the seller has agreed to pay. Each loan type has slightly different rules when it comes to seller contributions. For example for all ____ loans, the seller and other interested parties can contribute up to 6% of the sales price or toward closing costs, prepaid expenses, discount points, and other financing concessions.
FHA Insured
146
Each of these loan types is exempt from the provisions of the Truth in Lending Act EXCEPT
A mortgage for a borrower's primary residence
147
When used throughout TILA and Regulation Z, ____ is often considered to be the finance charge expressed as a percentage. It relates the amount and timing of value received by the consumer to the amount and timing of payments made.
Annual percentage rate
148
According to the Truth in Lending Act, which of these is to be EXCLUDED from the finance charge?
Seller paid points
149
Borrower Juanita signs the note and mortgage for a refinance on her principal residence on Thursday, Dec. 31. As set forth by TILA and implemented by Regulation Z, what is the earliest day the funds for this loan can be disbursed?
Wednesday, Jan 6
(In this scenario, the recession period ends Tuesday Jan 5 (day 3) and the funds can be disbursed Wednesday Jan 6 (day 4)
150
As defined and used throughout TILA and Regulation Z, which of the following is NOT included in the term "dwelling?"
Office rental
151
What statement triggers additional loan term disclosure for advertising purposes according to the Truth in Lending Act?
Pay only $500.00 per month
152
Regulation Z applies to all
personal real estate credit transactions
153
To comply with the Truth in Lending Act, for credit secured by real property or a dwelling (closed-end credit only), the disclosed finance charge is considered accurate if it is not understated by more than
$100
154
Regulation Z sets forth that ____ is the cost of consumer credit as a dollar amount including fees charged by a mortgage broker (including fees paid by the consumer directly to the broker or to the creditor for delivery to the broker), even if the creditor does not require the consumer to use a mortgage broker and even if the creditor does not retain any portion of the charge.
Finance charge
155
Section 35 of _____ sets forth requirements for loans that meet higher-priced mortgage loan criteria.
Regulation Z
156
Which of the following is NOT exempt from the restrictions set forth by Section 32 of Regulation Z for high-cost mortgage loans?
A two unit dwelling where one unit is residential investment property
157
The only mortgage that Lucille's lender would give her is a high-cost loan that defers interest payments for the first two years, anticipating that her salary will increase enough to change the payment schedule. However, a high-cost loan that results in negative amortization is illegal under what law?
HOEPA
158
As set forth by Section 36 of Regulation Z, what loan characteristic can be used to determine the fee that a mortgage loan originator is paid?
Total loan amount
159
The Loan Originator Compensation Rule, as implemented by Regulation Z (Section 36), sets forth that a mortgage broker's compensation paid to an employed MLO can be based on any of the following triggers EXCEPT
Interest rate charged
160
In compliance with the Home Ownership and Equity Protection Act, lender Luke may not refinance a higher-priced loan within the first ____ months of origination, unless the new loan is in borrower Mary's best interest.
12 Months
161
A borrower is receiving her first ever loan to purchase her first home and is excited to close as soon as possible. If the loan is subject to the terms and provisions of Section 32, what must an MLO require prior to closing?
A confirmation that HUD counseling offered has indeed taken place prior to closing
162
Bobbi applied for a $300,000 mortgage loan with DI Mortgage Company, a mortgage broker. DI then submitted the loan application to Whitmore Lending, a mortgage bank, which approved Bobbi for a loan. Assuming all other points and fees charged by the lender totaled $10,000, what is the maximum fee that DI would be allowed to receive without triggering HOEPA?
$5,000
(HOEPA would be triggered once the points and fees exceed $15,000. Subtracting $10,000 from this amount leaves $5,000 available for broker fees.)
163
For a higher-priced mortgage loan, if the price reflected in the consumer's purchase agreement is more than ___% higher than the seller's acquisition price during the first 91-180 days, creditors are required to obtain a second appraisal.
20%
164
As set forth by Regulation Z, a creditor must obtain a second appraisal for a higher-priced mortgage loan when the seller acquired the property within the last 90 or fewer days and the price to acquire the property exceeds the seller's acquisition price by more than
10%
165
TRID sets forth that MLO Paige must deliver or place in the mail the Loan Estimate no later than the ____ business day after receiving a complete application.
3rd
166
What is the only fee that an MLO can collect until the borrower has received the initial application disclosures, including the Loan Estimate, and the MLO has acknowledged the borrower's intent to proceed with the mortgage loan?
Credit report fee
167
On the Loan Estimate, broker fees paid directly by the borrower must be
Itemized separately from other origination fees
168
In compliance with TRID, which of the following correctly lists the specific information that defines a "complete" application and requires that MLO Kennedy provide an applicant with a Loan Estimate?
Borrower's name, Social Security number(s), gross monthly income, the subject property address, the loan amount, and an estimate of the value of the subject property
169
MLO Korina has started an application for applicant Brock. It is a violation of TRID if she collects any fees before she provides Brock with a Loan Estimate with the exception of the collection of a(n)
Credit report fee
170
Applicant Amy is given a Written List of Settlement Service Providers at the same time she receives a Loan Estimate. The list of settlement service providers includes referrals to lender affiliates. The AfBA disclosure must be provided to Amy
At the same time she receives the Written List of Settlement Service Providers
171
Within a few days of receiving an initial Loan Estimate (LE), Rick needs to add his wife to the loan application so he can use her income to qualify for the loan. Which of the following is a TRUE statement as it relates to the lender providing a revised LE?
This is a changed circumstance in borrower eligibility that allows for a revised LE
172
A creditor provides a $400 estimate of title fees, which are included in the category of fees that may not increase by an aggregate of more than 10%. An unexpected unreleased lien is discovered and the title company must perform unexpected additional work to release the lien. The additional costs result in a 5% increase over the sum of all fees included in the category of fees that may not increase by an aggregate of more than 10%. In this case,
This is a changed circumstance that allows for a revised LE that can be used for good faith analysis
173
TRID sets forth that MLO Larry must deliver or place in the mail the Closing Disclosure no later than ____ business day(s) before consummation.
3
174
TRID requires that charges paid by the consumer to the creditor, such application and processing fees, are to be recorded in what section of the Closing Disclosure?
Origination Charges
175
TRID sets forth that a creditor must ensure that the consumer receives the revised Loan Estimate no later than ___ business day(s) prior to consummation.
4
176
TRID sets forth that creditors must deliver or place in the mail the special information booklet not later than ___ business day(s) after receiving the consumer's complete loan application.
3
177
Borrowers qualify for and decide they can afford a 15-year fixed-rate mortgage rather than the 30-year fixed-rate mortgage for which they originally applied. Which statement most accurately describes if this is or is not a changed circumstance that allows for a revised Loan Estimate (LE) that can be used or not used for good faith analysis purposes?
This is a changed circumstance that allows for a revised LE that can be used for good faith analysis
178
When completing a Loan Estimate, where should a licensed mortgage loan originator include an estimate of hazard insurance premiums?
Prepaids
179
As set forth by Regulation Z, before enforcing an acceleration clause that appears as part of the mortgage, lenders must wait until payments are delinquent at least ____ days.
120
180
Regulation B requires that applicants must be made aware of their right to receive an appraisal report created as the result of their mortgage loan application. This disclosure must be mailed or delivered to applicants not later than ___ business days after the lender receives a complete application.
3
181
Lenders submit Loan/Application Registers in order to comply with what law?
HMDA
182
On the Closing Disclosure, the Calculating the Cash to Close section on Page 3 must list figures from the most recent Loan Estimate. In addition to indicating if there is a change, the change must be explained and, if there is a tolerance cure, it must be shown as a ____ in Section J on Page 2.
Lender credit to the borrower
183
The Loan Estimate and Closing Disclosure both have Section F Prepaids, Section G Initial Escrow Payment at Closing, and Section H Other. There is a(n) ______ tolerance for change for the costs in these three sections.
Unlimited
184
While it is illegal to ask or consider the race or ethnicity of an applicant, which federal legislation requires that this information be requested from every applicant?
Home Mortgage Disclosure Act
