Federal Mortgage-Related Laws

Question 1

Revised loan estimates must involve a change caused amounts to increase by at least?

Answer 1

10%

Question 2

The penalties for paying or accepting an illegal referral fees are?

Answer 2

up to $10,000 and up to 1 year of prison

Question 3

Finance charges always include which of the folowing?

Answer 3

Mortgage broker fees

Question 4

The Do Not Call Implementation Act authorizes the implementation enforcement of:

Answer 4

The Do Not Call Registry

Question 5

The amount of down payment, finance charge, or the number of payments needed are all examples of ______under TILA?

Answer 5

Trigger Terms

Question 6

When calculating finance charges in compliance with TILA, all of the following are included except?

Answer 6

Closing agent fees, when the borrower chooses the closing agent

Question 7

The mandatory waiting period between insurance of disclosures and consummation may be waived

Answer 7

if the consumer requests a waiver due to a bon a fide financial emergency

Question 8

Under TILA guidelines, all of the following disclosures are provided for an adjustable rate loan except?

Answer 8

Statement that the interest rate will be offered for the duration of the loan

Question 9

Who has supervisory responsibilities for TILA compliance

Answer 9

CFPB (Consumer Financial Protection Bureau)

Question 10

HOEPA (home ownership and equity protection act) does not apply to

Answer 10

Bridge loans to finance construction

Question 11

If a creditor violates ECOA (Equal credit opportunity act) how many years does a consumer have to take civil action?

Answer 11

5

Question 12

Under the homeowners Protection Act, borrowers can request that lenders cancel PMI when their loan balance is less than _____, or a lender may collect PMI until ____ loan to value is reached

Answer 12

80%, 78%

Question 13

The servicing rules require live contract with a delinquent borrower?

Answer 13

By the 36th day of delinquency

Question 14

The lender is permitted to deny an applicant credit based on?

Answer 14

the applicant lacks income stability

Question 15

If a loan applicant chooses not to disclose his or her race on a loan application, what recourse does a mortgage officer have?

Answer 15

Note that the applicant has declined to answer and select race based on visual obervation

Question 16

Fact on PMI

Answer 16

Loan services must give borrowers an annual disclosure stating that they may have the right to cancel their PMI

Question 17

What fee can a creditor collect providing a loan estimate?

Answer 17

Credit report fee

Question 18

Provisions included in the Dodd Frank Act, HOEPA was revised to extend its provision to?

Answer 18

Open-end transactions and purchase money mortgages

Question 19

feature not allowed for a qualified mortgage?

Answer 19

adjustable interest rates

Question 20

When must a closing disclosure be provided to the loan applicant under the TRID Rule?

Answer 20

no later than 3 business days prior to consummation

Question 21

RESPA doesnt not apply to?

Answer 21

Loans for business, commercial, and agriculteral purposes

Question 22

What federal staue serves to control the settlement costs of residential mortgage loans?

Answer 22

RESPA

Question 23

Regulation B

Answer 23

To prohibit discriminatory treatment off credit applicants

Question 24

If a creditor denies an application for a first lien mortgage, a copy of the appraisal

Answer 24

Must be provided within 30 days of the decision to deny

Question 25

Maximum fee a creditor may charge a loan applicant for preparation of a Closing Document

Answer 25

$0

Question 26

When does ECOA require that the applicant be advised of the status of the application?

Answer 26

within 30 days

Question 27

What is defined as the cost of credit expresses as a dollar amount?

Answer 27

Finance Charge

Question 28

HOEPA enacted as part of?

Answer 28

TILA

Question 29

Suspicious Activity Report (SARs) are used to detect and prevent?

Answer 29

Money Laundering

Question 30

What law created reporting requirement?

Answer 30

HMDA (Home Mortgage Disclosure Act)

Question 31

What violates RESPA?

Answer 31

Mortgage broker accepts a fee for sending its customer to a title company

Question 32

If Notice of Right to Cancel isn’t received, what is the deadline for recission?

Answer 32

3 years after closing

Question 33

What loan requires a booklet called: Your Home Loan Toolkit

Answer 33

A new home purchase

only required to be given to one borrower is there are multiple.

Question 34

Under the Gramm Leach Bliley Act, what is considered non public information?

Answer 34

A borrowers current loan balances

Question 35

A lender may not charge for the preparation of any documents required in a federally-regulated mortgage loan transaction, based on provisio

Answer 35

Real Estate Settlement Procedures Act