Found in Florida Module

Question 1

What is the purpose of ECOA?

Answer 1

Prohibits discrimination in the extension of credit on the basis of race, color, religion, national origin, sex, marital status, age, or income derived from public assistance

Question 2

What Regulation is ECOA?

Answer 2

B

Question 3

What is the purpose of RESPA?

Answer 3

Requires various disclosures throughout the loan process, prohibits certain practices that increase the cost of settlement services, and prohibits kickbacks and regulates advertising terms

Question 4

What Regulation is RESPA?

Answer 4

X

Question 5

What are some forms that must be disclosed under RESPA?

Answer 5

Good Faith Estimate and the HUD-1 Settlement Statement

Question 6

What was TILA designed to do?

Answer 6

Protect consumers in credit transactions by requiring clear disclosure of key terms and costs associated with a loan

Question 7

What Regulation is TILA?

Answer 7

Z

Question 8

What is the purpose of Gramm-Leach-Bliley?

Answer 8

It requires financial institutions that offer consumer financial products or services to explain their information-sharing policies and practices to protect sensitive consumer data

Question 9

Under RESPA, what are some examples of disclosures?

Answer 9

1. Settlement Cost Booklet
2. Good Faith Estimate
3. Hud-1 and Hud-1a Settlement Statement
4. Initial Escrow Statement
5. Affiliated Business Arrangement Disclosure

Question 10

When must the Settlement Cost Information Booklet be given to consumers?

Answer 10

Due three business days after completion of a loan application

Question 11

When must the GFE be given to consumers?

Answer 11

Due within three business days of application

Question 12

When can the HUD-1 Settlement Statement be given to a consumer?

Answer 12

Can be given one day prior to settlement

Question 13

When must the Initial Escrow Statement be given to the consumer?

Answer 13

Due within 45 days of closing

Question 14

When must the Affiliated Business Arrangement Disclosure be given to consumers?

Answer 14

Due at the time of referring a loan applicant to a settlement service provider

Question 15

What disclosures must be given to consumers under TILA?

Answer 15

1. CHARM Booklet
2. Early ARM Disclosure
3. Initial TIL
4. Final TIL

Question 16

When must CHARM Booklets be given to consumers?

Answer 16

Within three business days of application for an ARM

Question 17

When must Early ARM Disclosures be given to consumers?

Answer 17

Due within three business days of application

Question 18

When must Initial Truth-in Lending Disclosure Statement be given to consumers?

Answer 18

Due within three business days after the receipt of a completed loan application

Question 19

When must the Final Truth-in Lending Disclosure Statement be given to consumers?

Answer 19

Delivered or placed in the mail no later than the seventh business day before settlement

Question 20

Conforming Loans

Answer 20

Meet loan limits by Fannie Mae and Freddie Mac; lower interest rates and cost less

Question 21

Non-conforming Loans

Answer 21

Do not meet loan limits by Fannie Mae and Freddie Mac

Question 22

What are the limits on loans for Fannie and Freddie?

Answer 22

$417k, $625,500 in high-cost areas

Question 23

What is the down payment requirement for a conforming mortgage?

Answer 23

At least 5%; some lenders require up to 20%

Question 24

If a borrower does not have efficient funds to meet the minimum downpayment for a conforming loan, what must they purchase?

Answer 24

Private Mortgage Insurance

Question 25

When does Private Mortgage Insurance automatically terminate?

Answer 25

When LTV reaches 78%, Equity at 22%

Question 26

When can a borrower request to cancel Private Mortgage Insurance?

Answer 26

Once the LTV reaches 80%

Question 27

In order to be eligible for FHA insurance, a mortgage must be made by an FHA-approved lender and the amount of the mortgage must be the lesser of…?

Answer 27

115% of the median house price in an area

150% of the national conforming loan limit of $417k

Question 28

What are the two different types of insurance premiums with FHA loans?

Answer 28

Upfront Mortgage Insurance Premium and Annual Mortgage Insurance Premium

Question 29

When is the premium paid for Upfront Mortgage Insurance?

Answer 29

Paid in full by the borrower at closing (sometimes financed)

Question 30

What is the downpayment requirement for FHA loans?

Answer 30

3.5% down