Federal Mortgage Related Laws Flashcards
A loan contains a late payment penalty provision, which of the following documents would a borrower review to confirm this?
Loan Estimate
For the purpose of rescinding a loan transaction, “business days” include everyday of the week except?
Sunday and Federal Holidays
Who must receive a Notice of right to cancel in Refinance transaction?
Anyone with ownership interest in the property
John Brown and Jane brown are co-owners of a property and are entering into a refinance transaction that is subject to rescission. John is provided with one copy of Notice of Right to cancel and Jane receives no disclosure. What is their deadline for rescission?
Three years after closing
RESPA applies to all of the following loans except
Loans for 25 acres or more
If an individual submits false information for the purpose of obtaining a federally covered loan, he/she could be face:
Up to 1,000,000 fine and prison
A service transferring notice must be provided to a borrower___ days prior to the transfer of servicing on a loan
15
A lender has an affiliated business arrangement with a third party service provider. Under what circumstances can the Lender require a borrower to use the services in a loan transaction?
If there is no kickbacks or referral fees and the service provider is an attorney, credit reporting agency or appraiser
When must the loan estimate be provided to the borrower>
Within 3 days of the application
The disclosure requirement of RESPA would apply to which of the following loans?
A loan to purchase a duplex and rehabilitate it into a single family dwelling
You take an application over the phone. Which of the following must occur within three days of a potential borrower submitting an application for a loan
Hand deliver or mail the Loan Estimate
When must a lender advise loan application about the status of their application?
within 30 days
What kind of loan transaction requires disclosure of the settlement Cost Booklet
A new home purchase
The Gramm-leach-Bliley Act specifies that a consumer must be given ___ to opt out before personal financial information is disclosed to a third party.
A reasonable opportunity
The real estate settlement procedure act includes all of the following provisions except?
It establishes the maximum origination fee that may be charged on a loan
Which of the following is included when calculating finance charges?
Mortgage broker fee
According to Federal fair lending laws which of the following cannot be considered when qualifying an applicant for a loan.
A female applicant is 4 months pregnant and might not continue to work once her baby is born.
Under the truth in lending act, a mortgage professional is required to disclose ___ to a borrower.
Term of the credit transaction
Under the fair credit reporting act, which of the following entities has the burden of protecting a consumers privacy when his/her credit information is being reported.
The credit reporting agency
Which of the following is true of PMI disclosure?
It’s different for each type of loan
Under the Gamm-Leach-Bliley Act, which of the following is considered non public information?
A borrowers current loan balance
If a creditor violates ECOA, how many years does a consumer have in which to take civil action?
2
Which of the following payment is a violation of RESPA?
A mortgage broker accepts a fee for sending it’s consumer to a title company
Under provision of the Truth in lending act, what is the maximum tolerance for an understated finance charge?
$100
A lender is gathering information on loans for the purpose of HMDA reporting. Loans made which of the following property types may be left out of the Lenders reports?
Travel trailers
If a loan applicant does not disclose his or her race on the loan application what should a mortgage professional do?
Note that the application has declined to answer and select a race based on a visual observation
All of the following information is provided for an adjustable rate loan per TILA guidelines except:
Statements that the interest rate will be affected for the duration of the loan
If a mortgage professional advertises a loan product at “7.25% APR,” according to TILA what other information must be included in the same advertisement?
No other information required
Which of the following facts about the settlement cost information booklet is not true?
It can be made part of other larger documents
It is legal for settlement service provider A to pay settlement provider B a portion of fees charged to a borrower only when:
Service provider B has performed bona fide services in exchange for the fee
Mr Jones loan application has been denied and you provided him with an adverse action notice as required by ECOA. Which of the following pieces would not be included on the notice?
His credit score
Which of the following is defined as the cost of credit expressed as a dollar amount?
Finance charge
