Laws

Question 1

RESPA does not apply to…

Answer 1

vacant land and temporary financing, such as bridge loans and construction loans.

Question 2

RESPA does not apply to properties containing…

Answer 2

25 or more acres (agricultural property).

Question 3

According to RESPA Section 6 a creditor may not seek judicial foreclosure or a trustee’s sale action for at least

Answer 3

120 days for a borrower who is delinquent.

Question 4

The lender must provide the borrower with a list of

Answer 4

(10) HUD approved counselors.

Question 5

Standard form used to disclose to the borrower whether the lender intends to retain the mortgage servicing of the loan

Answer 5

Mortgage Servicing Disclosure

Question 6

A “valid changed circumstance” is defined under RESPA as:

Answer 6

An Act of God, New information regarding the consumer, Information regarding the consumer’s qualification

Question 7

The lender has _____ after the closing to refund to the borrower any portion
of the charges that exceeded the acceptable amount of a stated tolerance level.

Answer 7

60 Business Days

Question 8

TRID rules do not apply to…

Answer 8

HELOCS, reverse mortgages, mortgages for mobile

homes not secured by real estate.

Question 9

The Rate Lock information is ONLY found on:

Answer 9

the loan estimate

Question 10

The main purpose of RESPA is to help consumers become better shoppers for:

Answer 10

Settlement services

Question 11

TILA is administered by the

Answer 11

Consumer Financial Protection Bureau.

Question 12

TILA Disclosers

Answer 12

disclosure of financing charges, distribution
of the Consumer Handbook on Adjustable-Rate Mortgages (CHARM) booklet, and the
right of rescission.

Question 13

Is required to be provided to the

borrower if he/she received a Home Equity Line of Credit (HELOC) or Home Equity Line of Credit Loan.

Answer 13

“When Your Home is on the Line” disclosure

Question 14

Requires that entities that purchase or acquire
mortgage loans notify the borrower and provide the name, address and telephone number of the new owner of the mortgage, within 30 days of acquisition.

Answer 14

The Transfer of Ownership Disclosure

Question 15

The Transfer of Ownership Disclosure only applies to :

Answer 15

primary mortgage.

Question 16

The APR is generally higher than the:

Answer 16

Note Rate

Question 17

A fee the buyer would not pay if it were a cash deal.

Answer 17

Finance Charge

Question 18

A loan will be considered a High Cost (Section 32) loan if its APR exceeds the APOR by more than

Answer 18

6.5% for a first lien of $50,000 or higher, 8.5% on a first lien less than $50,000, and or 8.5% for a subordination lien

Question 19

A loan will be considered a High Priced (Section 35) loan if its APR exceeds the APOR by more than

Answer 19

1.5%, 2.5% for jumbo first-lien loans, and 3.5% for

subordinate liens.

Question 20

HIGH COST home loans have the following restrictions:

Answer 20

most balloon mortgages are prohibited, the borrowers must prove an ability to repay the loan, and the borrower must speak to a HUD-approved housing counselor.

Question 21

Penalties for violation of TILA

Answer 21

$5,000 per day for a single violation, $25,000 per

day for reckless violations, $1,000,000 per day for knowingly violating TRIDrules.

Question 22

Some fees ARE NOT included in the prepaid finance charges used in APR calculations:

Answer 22

Title Insurance
Escrows for taxes and insurance
Notary fees
Appraisal fees
Termite inspection fees
Credit report charges

Question 23

Once an Application, as defined, is received, creditors are obligated to

Answer 23

Issue the loan estimate

Question 24

According TRID, a lender or broker may not charge the borrower anything but a reasonable credit report fee until the borrower…

Answer 24

has received the Loan Estimate and expressed intent to proceed.

Question 25

A loan originator should not ask an applicant how many children do they have (or plan to have) – the proper way to obtain this information is…

Answer 25

“How many dependents do you have?”

Question 26

ECOA requires credit bureaus to keep separate files on…

Answer 26

married spouses, if requested

Question 27

ECOA notification of adverse action (denial letter) must be in…

Answer 27

Writing

Question 28

A consumer can sue for a violation of ECOA for up to

Answer 28

24 months

Question 29

The penalty for violating ECOA is

Answer 29

$10,000

Question 30

Was enacted to reduce discriminatory credit practices against low-income neighborhoods. Designed to help meet the credit needs of the community.

Answer 30

Community Reinvestment Act (CRA)

Question 31

The range of possible FICO credit scores is

Answer 31

300 to 850

Question 32

Borrowers are entitled to a free credit report if the lender takes

Answer 32

adverse action against them.

Question 33

VA loans may not be use for:

Answer 33

Investment properties

Question 34

The Red Flag rules require credit card issuers to verify the:

Answer 34

validity of any change of address

Question 35

Any person who obtains a credit report without prior authorization, or a credit reporting agency employee who gives a credit report to an unauthorized person, maybe be fined up to:

Answer 35

$5,000 or imprisonment for 1 year, or both.