Mortgage

Question 1

initial application disclosures

Answer 1

required to be delivered at or placed in the mail within 3 days of TRID application

Question 2

what constitutes an application? minum information

Answer 2

applicants name
applicants income
applicants ss #
property address
estimated value of the property
loan amount

Question 3

business day definitions

Answer 3

for the purpose of meeting the 3 day rule for LE/CD disclosure and redisclosure:
A business day is a day on which the creditors offices are open to the public for carrying out substantially all of its business functions. Generally this is Monday thru Friday
for all other disclosre timing purposes a business day means all calendar days except Sundays and legal public holidays (recission).

Question 4

TRID Initial Disclosure

Answer 4

variable rate disclosure (ARM Only)
CHARM Booklet (ARM Only)
LE aka good faith estimate
settlement service providers list
mortgage toolkit (purchases)
homeownership counseling
appraisal notice

Question 5

Variable Rate Disclosure

Answer 5

Scope: when consumer selects ARMs with a term of greater than one year secured by the principal dwelling provide disclusre for each arm product requested

Question 6

CHARM

Answer 6

arms with a term of greater than one year secured by the principal dwelling delivery at application

Question 7

loan estimate (LE)

Answer 7

provides iportant information including the estimated interest rate monthly payment and total closing costs for the loan within 3 business days of application (part of TRID 6)

Question 8

settlement service providers list

Answer 8

if the applicant is permitted to shop for a settlement service
due within 3 business days of application

Question 9

good faith tolerance levels

Answer 9

zero tolerance -
fees paid to the credit union or an affiliate
fees paid to a third party if the member was not peritted to shop for a provider
transfer taxes
10% -
recording fees
fees paid to a third party if the member was permitted to shop for a provider and seleccts one from the credit unions written list
the sum total of all settleemnt charges in the category may increase by up to 10% between application and closing
unlimited tolerance
prepaid interest property insurance premimums amounts placed into esrow
fees paid to a thir party if the member was permitted to shop for a provider and selects one not on the red unions wirtten list
fees paid to a third party for services not reuied by the credit union

Question 10

loan estimate redisclosure rules

Answer 10

when is a redisclosure required?
rate lock
a change which renders the APR inaccurate
a loan product change causing the disclosed information to become inaccurate
the addition of a prepayment penalty to the loan
timing
the revised loan estimate must reflect the costs at the time of disclosure.
the revised loan estimate must be placed in the mail within 3 business days of the credit unon learning of the changed circumstance
the revised loan estimate must be received no later than 4 business days before closing

Question 11

mortgage toolkit

Answer 11

purchase money mortgage l0ans
within 3 business days of application

Question 12

homeownership counseling notice

Answer 12

all federally related mortgage loans includng HELOC
within 3 business days of application

Question 13

apprsisal notice

Answer 13

first lien loans secured by a dwelling within 3 business days of application

Question 14

Reg b appraisal delivery

Answer 14

first lien loans secured by a dwelling
a copy of any valuation shall be provided to the applicant upon the earlier of proptly upon completion or no later than 3 business days prior to consummation

Question 15

valuations that must be provided to the applicant

Answer 15

appraisal
brokers price opinion
automated valuation model

Question 16

a valuation can be

Answer 16

appraisal, an automation valuation model or a broker price option

Question 17

appraisal delivery NCUA 701.31

Answer 17

subordinate lien loans secured by a dwelling
a federally chartered credit union shall make available upon request a copy of any appraisal obtained in connection with a subordinate lien loan secured by a dwelling

Question 18

flood determination

Answer 18

the credit union must use the standard flood hazard determination form to determine whether or not a flood insurance is required
the credit union shall retain a copy of the determination for the entire period of time that it owns the loan

Question 19

ecoa advers action notice

Answer 19

a refusal to grant new credit requested
an unfavorable change in terms of an existing account
a refusal to grant a requested increase in the limit of an existing account
Due within 30 days of taking adverse action on
a completed application
an incomplete application
an existing account
within 90 days of extending a counteroffer that is not accepted by the applicant

Question 20

notice to home applicant

Answer 20

if a credit score is used in connection with a mortgage loan application
as soon as reasonably practicable

Question 21

risk based pricing notice

Answer 21

generally the credit union must provide to the member a notice if the credit unon
uses a consumer report in connection with an application for credit and based in whole or in part on the consumer report grants exxtends or otherwise provides credit to the consumer on material terms that are materially less favorable than the most favorable to a substantial proportion of consumers from or through that person
A and B no notice

Question 22

Lender paid PMI initial disclosure requirements

Answer 22

the initial disclosure for lender paid PMI must state that
lender paid pmi may not be cancelled by the borrower
lender paid pmi usually results in the loan having a higher interest rate
lender paid pmi only terminates when theloan is paid off or refinanced
a comparison of the costs and benefirs of lend paid v borrower paid pmi
lender paid pmi may be tax deductible

Question 23

heloc brochure

Answer 23

opend end credit plans secured by the members dwelling at the time an application is provided to the member

Question 24

closing disclosure

Answer 24

all closed end consumer credit transasctions secured by real proerty
except
helocs
reverse mortgages
mortgages secured by a mobile home or dwelling that is not attached to real property
must be receivef no later than 3 business days prior to closing

Question 25

closing disclosure new 3 day

Answer 25

when issuing a revised closing disclosure for any of the following reasons a new 3 day waiting period before closing is required
a change to the loans apr outside of the acceptable tolerance levels
1/8 of 1% for regular transactions
1/4 of 1% for irregular transactions
a change to the loan product
the addition of a prepayment penalty to the loan

Question 26

cures for tolerance violations

Answer 26

if tolerance violations are identified prior to closing the lender can issuing a credit on the closing disclosure
refund any overage to the member no later than 60 calendar days after closing
apply a principal reduction so less money is owed on the loan

Question 27

right of rescission

Answer 27

refinance loan for which you will acquire or retain a security interest in the memb3ers principal dwelling
purchase mmoney transactions exempt due at closing

Question 28

waiving the right to rescind

Answer 28

permissible in the event the borrower is experiencing a bona fide personal financial emergency
the credit union must be provided a dsted written statement that
describes the nature of the personal financial emergency
makes a specific request to waive the resission period
is signed by all owners entitled to exercise the right to rescind

Question 29

initial rate adjustment notice

Answer 29

adjustable rate mortgags with a term of greater than one year bewtween 210 and 240 days before the first payment at the adjusted level is due

Question 30

small servicer exemptions

Answer 30

a credit union that together with its affiliates services 5000 or fewer

Question 31

notice of servicing transfer

Answer 31

upon the assignment sale or transfer of any mortgage loan
seperate notices
transferors notice 15 days before
transferees notice 15 days after
combined
no less than 15 days before the effective date

Question 32

initial escrow account disclosure stateement

Answer 32

escrow accounts established in connection with a federally related mortgage loan
at closing or within 45 calendar days

Question 33

escro and deficiency

Answer 33

the amount of any actual negative balance in the escrow account
deficiency of less than one months escrow payment a\

Question 34

error resolution procedures

Answer 34

writen notice to be ackowledfe within 5 days
investigate and respond within 30 days

Question 35

request for information

Answer 35

written notice from the borrower
name
account number
description of the information requested
acknowledge wthin 5 days
30 days

Question 36

force placed insurance

Answer 36

initial no later than 45 days before
reminder no later than 15 days before

Question 37

PMI Borrower requested cancellation

Answer 37

PMI may be cancelled upon the borrowers written request if all of the following are satisfied
borrower is current
borrower has shown a good payment history
has shown to the credit unions satisfaction that
the property has not declined below its original value
the property is free of any subordinate liens
the loan balance has reached 80% of the original property value based on the loans amortization schedule or actual payments

Question 38

PMI automatic termination

Answer 38

PMI MUST be cancelled when all of the folling are satisfied
loan balance is scheduled to reach 78%
the borrower is current on the loan

Question 39

PMI final termination

Answer 39

if for any reason other than for not being current PMI has not been cancelled or terminated by the time the loan reaches the mid point it must be terminated
however termination is conditioned on the borrower being current on the loan

Question 40

PMI refund of unearned premium

Answer 40

upon cancellation or termination of PMI any unearned premimum must be refunded to the borrower within 45 days

Question 41

RESPA Early intervention Notice

Answer 41

the written notice of delinquency must contain
a statement encouraging the borrower to contact the credit union
the credit unions mailing address and telephone number
a list of possible loss mitigation options
instructions as to how the borrower can obtain more information on loss mitigation options
the website to access either HUDs or the CFPs list of homeownership counseling organizations

Question 42

RESPA loss mitigation procedures

Answer 42

mortgages secured by the borrowers primary residence
exception small servicers
requirements
the credit union must promptly review applications for loss mitigation assistance
a borrower may appeal the credit unions denial of their loss mitigation application within 14 days
the appeal must be considered by a different staff member
the credit union may not proceed to foreclosure until the borrower is at least 120 days delinquent

Question 43

TILA record retention

Answer 43

general rule 2 years
for loans secured by real property
application disclosures 3 years
loan originator compensation records 3 years
closing dislcosure 5 years

Question 44

ability to repay

Answer 44

rquires a creditor to make a reasonable good faith determination of a consumers ability to repay a residential mortgage loan according to its terms
loans that meet to ATR QM rules requirements for qualified mortgags obtain certain protections from liability
exceptions
heloc
temporary or bridge loans with a term of 12 months or les
loans seured by a timeshare
reverse mortgages
construction loans

Question 45

ability to repay factors basis for determination

Answer 45

the consumers current or reasonably expected income or assets
the consumers current employent status
the monthly payment on the covered transaction
the monthly payment on any simultaneous loan that the credit union knows or has reason to know will be made
the consumers monthly payment for mortgage related obligations
the consumers current debt obligations including alimony and child support payments
consumers monthly debt to tincome ratio or residual income
the consumers credit history