Federal Mortgage-Related Laws questions

Question 1

What does RESPA stand for?

Answer 1

Real Estate Settlement Procedures Act

Question 2

Who is responsible for enforcement of RESPA?

Answer 2

CFPB - Consumer Financial Protection Bureau

Question 3

RESPA’s regulations are known as…

Answer 3

Reg X

Question 4

Types of loans that RESPA does not apply to:

Answer 4

ABC: Agricultural, Business, and Commercial

Question 5

What is the make up of a completed loan application?

Answer 5

ALIENS: Address, loan amount, income, estimated value, name, and SSN

Question 6

The Good Faith Estimate and HUD-1 Settlement Statement are required for these types of loans;

Answer 6

ROT: Reverse mortgages, open-end mortgages, and trailers.

Question 7

What does ECOA stand for?

Answer 7

Equal Credit Opportunity Act

Question 8

ECOA regulations are known as…

Answer 8

Reg B

Question 9

What is HMDA?

Answer 9

Home Mortgage Disclosures Act. Federal fair lending act to discourage redlining.

Question 10

What is the statute of limitations on an ECOA violation?

Answer 10

5 years

Question 11

What does TILA stand for?

Answer 11

Truth-In-Lending Act

Question 12

The primary goals of TILA are:

Answer 12

CAR. Disclosing Costs, truthful Advertising, and right to Rescind.

Question 13

TILA regulations are known as…

Answer 13

Reg Z

Question 14

Who is responsible for implementing and enforcing TILA regulations?

Answer 14

CFPB - Consumer Financial Protection Bureau

Question 15

What is a finance charge?

Answer 15

Cost of credit shown as a dollar amount.

Question 16

What is included in a finance charge?

Answer 16

COIMM: Closing agent fee, Origination fees, Interest rate and fees, Mortgage broker fees, and Mortgage insurance

Question 17

What does HOEPA stand for?

Answer 17

Home Ownership and Equity Protection Act

Question 18

What is reverse redlining?

Answer 18

The practice of targeting communities with limited access to credit.

Question 19

A ______ is a mortgage loan that meets an APR threshold, a points & fees threshold, or a prepayment penalty threshold.

Answer 19

High-cost Mortgage

Question 20

A first-lien home loan is a high-cost mortgage if it’s APR is ____ points above the average prime rate for a comparable transaction.

Answer 20

6.5

Question 21

A subordinate-lien home is a high-cost mortgage if it’s APR is ____ points above the average prime rate for a comparable transaction.

Answer 21

8.5

Question 22

For loans of more than $22,052, the APR threshold is triggered if the points and fees exceed __% of the total loan amount.

Answer 22

5%