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NMLS Exam > Misc. Laws > Flashcards

Misc. Laws Flashcards

1
Q

What does GLB stand for?

A

Gramm Leach Bliley Act

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2
Q

What is the Financial Services Modernization Act of 1999?

A

GLB

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3
Q

What makes up the GLB Act?

A
  1. Safeguards Rule
  2. Financial Privacy Rule
  3. Pretexting Provisions
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4
Q

Safeguards Rule

A

take reasonable care to “safeguard” NPPI (lock your cabinet)

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5
Q

Pretexting Provisions

A

Don’t pretend to be from the government

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6
Q

Financial Privacy Rule

A
  • Defines Non-Public Private Information (NPPI)

- Requires Consumer Privacy Policy sent to consumer annually or before sharing NPPI

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7
Q

What does the PATRIOT Act require creditors to have and maintain?

A

Customer Identification Programs (CIPs)

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8
Q

According to the PATRIOT Act, what must creditor verify?

A

SSN / TIN, Address, Name, DOB (SAND)

  • Must verify w/ Covered Document (current government issued ID)
  • Not required to verify phone number
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9
Q

What is the E-SIGN Act?

A

Electronic Signatures in Global and National Commerce Act

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10
Q

E-SIGN Act

A
  • Customer always has choice to use E-sigs or not

- May rescind choice and choose a “wet” signature (ink on paper) at any time

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11
Q

What does BSA / AML stand for?

A

Bank Secrecy Act / Anti-Money Laundering Act

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12
Q

What does BSA / AML say is the amount that must be reported for all cash transactions?

A

Anything greater than $10,000

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13
Q

According to BSA / AML, one must report all electronic / wire transactions if:

A
  • Insider abuse = any $ amount
  • Suspect / Suspicion = $5,000 and up
  • All transactions = $25,000 and up
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14
Q

BSA / AML records must be kept for

A

5 years

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15
Q

If required to report, file SARs w/ FBI, can you tell the person?

A

NO!

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16
Q

Who governs the Do Not Call Registry?

A

FTC

17
Q

If you violate the Do Not Call Registry what is the MAX civil penalty per violation?

A

$16,000 per violation

18
Q

How frequently must the National DNC be updated?

A

every 90 days

19
Q

How frequently must the Internal DNC be updated?

A

every 30 days

20
Q

If on National but not Internal List, EBR rules apply:

A
  • If EBR, may contact 90 days from application
  • If EBR, may contact 18 months from closing loan or collecting $
  • Even if EBR, consumer may always request internal DNC List
21
Q

If ever on internal list, must honor DNC. (True or False)

A

True

22
Q

If on neither National or Internal DNC List, what rules apply?

A

Telephone Consumer Protection Act (TCPA) rules apply

- Legal cold-calling hours are 8a-9p consumer’s local time

23
Q

What is the MARS-O Rule?

A

Mortgage Assistance Relief Services – governs relief / rescue / modification companies

24
Q

According to the MARS-O Rule, relief companies cannot collect a fee until when?

A

Until borrower has bona fide written offer from their current lender which avoids foreclosure that they find acceptable

25
Q

What is the MARS-O Rule retention?

A

2 years

26
Q

What Regulation is the MAP Rules?

A

Regulation N

27
Q

What do the Map Rules-N say?

A
  • Mortgage Acts and Practices – governs advertisements

- Clear and Conspicuous and Equal Prominence

28
Q

What does HPA stand for?

A

Homeowner’s Protection Act

29
Q

What does the Homeowner’s Protection Act govern?

A

Governs PMI (not MIP) — not related to HOEPA

30
Q

According to HPA, a borrower may request cancellation of PMI at what percentage LTV

A

80% LTV

31
Q

According to HPA, a creditor can require:

A
  • New appraisal
  • 5 years of PMI
  • clean payment history last 12 months
32
Q

When must automatic cancellation of PMI occur?

A

When borrower has paid the principal balance

down to 78% of the original value (from consummation)

NMLS Exam (12 decks)

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