MLO QUESTIONS

Question 1

How does ECOA differ from the Fair Housing Act?

Answer 1

FHA includes family status and handicap
2. FHA does NOT include CCPA and public assistance income

Question 2

How many years is the statute of limitations for ECOA actions?

Answer 2

5 YEARS

Question 3

When do you receive the copy of an appraisal?

Answer 3

Within 3 business days of application (if borrower receives Adverse Action, borrower gets appraisal within 30 days)

Question 4

How many days to receive disclosures regarding monitoring programs?

Answer 4

Within 3 days of application

Question 5

What is the LAR?

Answer 5

Loan application register (spreadsheet to report HMDA data)

Question 6

What is the MSA?

Answer 6

Metropolitan Statistical Area (pop over 50,000)

Question 7

RESPA

Answer 7

protects consumers from excessive costs/fees, and allows them to shop for settlement services

Question 8

What is section 6 of RESPA

Answer 8

Transfer of Servicing

Question 9

How many days notice do you need to give when servicers are being transferred?

Answer 9

15

Question 10

After how many days are borrowers considered late when making payments to their older servicer?

Answer 10

60

Question 11

What is section 8 of RESPA

Answer 11

No kickbacks/referral fees

Question 12

What is section 10 of RESPA

Answer 12

ESCROW ACCOUNT

Question 13

How many days to receive an initial escrow statement

Answer 13

within 45 days

Question 14

How many months cushion can an escrow account demand?

Answer 14

2 months or 1/6 annual escrows

Question 15

What RESPA disclosure is included for purchases only?

Answer 15

Settlement Costs Book

Question 16

When is an Affiliated Business Arrangement disclosure needed?

Answer 16

at time of referral

Question 17

When is a HUD 1 settlement statement required?

Answer 17

For purchase money mortgages/refinance

Question 18

When are HUD-1A needed?

Answer 18

REFI’S ONLY

Question 19

When can a preliminary HUD-1/HUD-1A be requested?

Answer 19

can be requested by the borrower 1 day prior to settlement

Question 20

How many days old can a list of housing counseling organizations be?

Answer 20

NO MORE THAN 30 DAYS

Question 21

If a revised GFE provided, how many days must it be issued?

Answer 21

Within 3 days of the LO becoming aware of the info that constitutes changed circumstances.

Question 22

GFE charges that cannot exceed 10%

Answer 22

government recording charges, title services, title insurance

Question 23

What is the acronym/description of a completed loan application?

Answer 23

ALIENS:
A-address
L-loan amount
I-income
E-estimate of value
N-name of borrower
S-SSN

Question 24

Which disclosures need 5 year record retention

Answer 24

Servicing Disclosure
HUD1
AFBA Disclosure

Question 25

Cost Disclosure will replace what?

Answer 25

Final TIL and HUD 1

Question 26

Notice of the Right to Rescind is given to whom and how many copies

Answer 26

All parties (anyone with title)
2 copies

Question 27

Rescission extends from 3 days to how long if not everyone receives 2 copies?

Answer 27

3 years

Question 28

What are the 3 TILA disclosures?

Answer 28

Truth in Lending
Special Information Books
ARM Disclosures .

Question 29

How many days must a borrower wait to settle after the initial TIL disclosure?

Answer 29

7 days (3 days to settle after re-disclosure)

Question 30

When is the CHARM booklet issued?

Answer 30

Purchase & Refis for ARMs

Also includes early arm program disclosures

Question 31

What information booklet is issued with HELOCs?

Answer 31

When Your Home is On the Line-What You Should Know About Equity

Question 32

Initial Rate Adjustment Disclosure provided within how many days?

Answer 32

210-240 before first adjusted payment.

Question 33

Subsequent rate adjustment disclosure provided within how many days?

Answer 33

60-120 days

25-120 days before adjustments that occur every 60 days or less

Question 34

HOEPA rate thresholds

Answer 34

6.5/8.5% above APOR