NMLS Exam Cheat Sheet Flashcards
How does ECOA differ from the Fair Housing Act?
- FHA includes family status and handicap
2. FHA does NOT include CCPA and public assistance income
How many years is the statute of limitations for ECOA actions?
5 years
When do you receive the copy of an appraisal?
Within 3 business days of application (if borrower receives Adverse Action, borrower gets appraisal within 30 days)
How many days to receive disclosures regarding monitoring programs?
Within 3 days of application
What is the LAR?
Loan application register (spreadsheet to report HMDA data)
What is the MSA?
Metropolitan Statistical Area (pop over 50,000)
RESPA
protects consumers from excessive costs/fees, and allows them to shop for settlement services
What is section 6 of RESPA
Transfer of Servicing
How many days notice do you need to give when servicers are being transferred?
15
After how many days are borrowers considered late when making payments to their older servicer?
60
What is section 8 of RESPA
No kickbacks/referral fees
What is section 10 of RESPA
Escrow Account
How many days to receive an initial escrow statement
within 45 days
How many months cushion can an escrow account demand?
2 months or 1/6 annual escrows
What RESPA disclosure is included for purchases only?
Settlement Costs Book
When is an Affiliated Business Arrangement disclosure needed?
at time of referral
When is a HUD 1 settlement statement required?
For purchase money mortgages/refinance
When are HUD-1A needed?
Refi only
When can a preliminary HUD-1/HUD-1A be requested?
can be requested by the borrower 1 day prior to settlement
How many days old can a list of housing counseling organizations be?
No more than 30 days old
If a revised GFE provided, how many days must it be issued?
Within 3 days of the LO becoming aware of the info that constitutes changed circumstances.
GFE charges that cannot exceed 10%
government recording charges, title services, title insurance
What is the acronym/description of a completed loan application?
ALIENS: A-address L-loan amount I-income E-estimate of value N-name of borrower S-SSN
Which disclosures need 5 year record retention
Servicing Disclosure
HUD1
AFBA Disclosure
Cost Disclosure will replace what?
Final TIL and HUD 1
Notice of the Right to Rescind is given to whom and how many copies?
All parties (anyone with title) 2 copies
Rescission extends from 3 days to how long if not everyone receives 2 copies?
3 years
What are the 3 TILA disclosures?
Truth in Lending
Special Information Books
ARM Disclosures .
How many days must a borrower wait to settle after the initial TIL disclosure?
7 days (3 days to settle after re-disclosure)
When is the CHARM booklet issued?
Purchase & Refis for ARMs
Also includes early arm program disclosures
What information booklet is issued with HELOCs?
When Your Home is On the Line-What You Should Know About Equity
Initial Rate Adjustment Disclosure provided within how many days?
210-240 before first adjusted payment.
Subsequent rate adjustment disclosure provided within how many days?
60-120 days
25-120 days before adjustments that occur every 60 days or less
HOEPA rate thresholds
6.5/8.5% above APOR