Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Affinity 844 Flashcards > OTHER FEDERAL LAWS > Flashcards

OTHER FEDERAL LAWS Flashcards

1
Q
  1. The Home Mortgage Disclosure Act (HMDA) is implemented by the
A

Federal Reserve Board’s REGULATION C.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q
  1. HMDA information is found on Section -
A

Section 8 (Demographic Information) of the1003 Loan Application.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q
  1. HMDA determines if
A

financial institutions are serving the housing needs of their communities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q
  1. HMDA laws were written in response to
A

the public concerns that lenders were “redlining”.

(Because of all the redlining that was taking place – HMDA rules and regulations were created to help “identify” possible redlining. Redlining is found under the Fair Housing Act.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q
  1. HMDA requires lending institutions to
A

report public loan data. More specifically, HMDA requires lenders to file annual reports regarding the ethnicity, race, and sex of all applicants. These reports are due every year in March.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q
  1. The log of applications that a creditor must keep and provide to the federal government is called a
A

Loan Application Register (or LAR).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
  1. HMDA reports (LARs) must be maintained for -
A

for three years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
  1. HMDA does NOT set lending quotas for protected classes of borrowers. HMDA does not expressly prohibit redlining or require that a certain number of loans be made in certain neighborhoods. Instead, lenders subject to HMDA must compile certain data, provide the data in a certain format to government agencies, and make available to the public, a disclosure statement regarding that institution’s lending activities.
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q
  1. HMDA requires a lending institution to post a general notice about
A

the availability of HMDA data in the lobby of its home office and in the lobby of each branch office located in a metropolitan area.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q
  1. HMDA data must be maintained and made available upon request, for -
A

three (3) years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q
  1. The Community Reinvestment Act is a regulation designed to -
A

help meet the credit needs of the communities in which it operates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q
  1. The Federal Financial Institutions Examination (FFIEC) Council is a formal U.S. government interagency body composed of five banking regulators that is “empowered to prescribe uniform principles, standards, and report forms to promote uniformity in the supervision of financial institutions”
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q
  1. Role of FFIEC -
A

Compiles information as individual disclosure statements foreach institution, and in the form of aggregate reports for all covered institutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q
  1. The Gramm-Leach-Bliley Act (GLBA) includes provisions to
A

protect consumer’s personal financial information held by financial institutions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q
  1. Another name for the Gramm-Leach-Bliley Act is the -
A

Financial Services Modernization Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. The GLBA requires financial institutions to -
A

give their customers privacy policies that explain the financial institutions’ information-sharing practices. In turn, consumers have the right to limit some sharing of their information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q
  1. Under the GLBA Privacy Rule –
A

a borrower receive the Privacy Policy Notice at first contact, and thereafter, once a year as long as he/she remains a customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q
  1. Consumers and customers have the right to -
A

opt-out of having their information shared with certain third parties per the GLB Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q
  1. The GLBA has SPF –
A

Safeguarding Policies, Pretexting Policies and Financial Privacy Policies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q
  1. The Gramm-Leach-Bliley Act requires all financial institutions to design, implement and maintain-
A

safeguards to protect customer information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q
  1. The Gramm-Leach-Bliley Act applies to
A

financial institutions that give loans or financial advice.

This includes mortgage brokers, lenders, tax preparers and debt collectors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q
  1. According to the GLBA a CONSUMER is
A

an individual who obtains or has obtained a financial product or service from a financial institution for personal, family or household reasons.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q
  1. According to the GLBA a customer is a consumer with
A

a continuing relationship with a financial institution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q
  1. GLBA Financial Privacy Rule -
A

governs collection of non-public personal information (NPI), restricts when information may be disclosed to affiliates and non-affiliated third parties, prohibits disclosure of access codes and account numbers to non-affiliated third parties, requires Consumer Privacy Notice.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q
  1. Non-public Personal Information (NPI) is -
A

“NPI is any personally identifiable financial information that a financial institution collects about an individual in connection with providing a financial product or service, unless that information is otherwise publicly available.’’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q
  1. GLBA Pretexting Rule -
A

protects consumers from individuals and companies that obtain their personal financial information under false, fictitious, or fraudulent pretenses (pretenders).

27
Q
  1. GLBA provides guidance to institutions regarding sharing of
A

non-public information and requires at a minimum they disclose: what information is collected about its customers and to whom they share it with.

28
Q
  1. Penalty for fraudulently obtaining personal information is up to -
A

five years in prison and a fine.

29
Q
  1. The Federal Communication Commission (FCC) and the Federal Trade Commission (FTC) established the
A

national Do-Not-Call (DNC)Registry.

30
Q
  1. Telemarketers and sellers are required to search the registry at least -
A

once every 31 days and drop from their call lists the phone numbers of consumers who have registered.

31
Q
  1. Violators of the DNC list could be fined up to
A

$43,792 per call, as each call, NOT EACH DAY , is considered a separate incident.

32
Q
  1. Both the national DNC list and the internal DNC list must be
A

updated every 31days and records to document this must be maintained for 24 months.

33
Q
  1. The National Do-Not-Call Registry does not limit calls by
A

does not limit calls by political organizations, charities, or telephone surveyors

34
Q
  1. Telemarketing calls may only be placed between -
A

8am and 9pm

in the time zone of the consumer being called

35
Q
  1. A company with which a consumer has an 𝐞𝐬𝐭𝐚𝐛𝐥𝐢𝐬𝐡𝐞𝐝 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩 may call for up to
A

18 months after the consumer’s last purchase, last delivery, or last payment unless the consumer asks the company not to call again.

36
Q
  1. If a consumer makes an inquiry or submits an application to a company -
A

the company can call for 3 𝙢𝙤𝙣𝙩𝙝𝙨..

37
Q
  1. Do Not Fax - Advertisers may not send a message to anyone’s
A

𝗳𝗮𝘅 𝗻𝘂𝗺𝗯𝗲𝗿 𝘂𝗻𝗹𝗲𝘀𝘀: 𝘁𝗵𝗲𝘆 𝗵𝗮𝘃𝗲 𝗮𝗻 𝗲𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗲𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽, 𝗳𝗮𝘅 𝗻𝘂𝗺𝗯𝗲𝗿 𝗶𝘀 𝗽𝘂𝗯𝗹𝗶𝗰 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻, 𝗿𝗲𝗰𝗶𝗽𝗶𝗲𝗻𝘁 𝗴𝗿𝗮𝗻𝘁𝗲𝗱 𝗽𝗲𝗿𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗮𝗻𝗱 𝗮𝗱𝘃𝗲𝗿𝘁𝗶𝘀𝗲𝗺𝗲𝗻𝘁 𝗵𝗮𝘀 𝗰𝗹𝗲𝗮𝗿 𝗼𝗽𝘁-𝗼𝘂𝘁 𝗶𝗻𝘀𝘁𝗿𝘂𝗰𝘁𝗶𝗼𝗻𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝗽𝗮𝗴𝗲 𝗼𝗳 𝘁𝗵𝗲 𝘁𝗿𝗮𝗻𝘀𝗺𝗶𝘀𝘀𝗶𝗼𝗻 𝗳𝗼𝗿 𝗿𝗲𝗰𝗶𝗽𝗶𝗲𝗻𝘁𝘀 𝘄𝗵𝗼 𝗻𝗼 𝗹𝗼𝗻𝗴𝗲𝗿 𝘄𝗶𝘀𝗵 𝘁𝗼 𝗿𝗲𝗰𝗲𝗶𝘃𝗲 𝗳𝗮𝘅𝗲𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝘀𝗲𝗻𝗱𝗲𝗿. 𝗧𝗵𝗲 𝗽𝗲𝗻𝗮𝗹𝘁𝘆 𝗳𝗼𝗿 𝘃𝗶𝗼𝗹𝗮𝘁𝗶𝗼𝗻𝘀 𝗶𝘀 $𝟱𝟬𝟬 𝗽𝗲𝗿 𝘂𝗻𝗮𝘂𝘁𝗵𝗼𝗿𝗶𝘇𝗲𝗱 𝗳𝗮𝘅.

38
Q
  1. The Mortgage Assistance Relief Services (MARS) Rule Regulation O - applies to
A

negotiators assisting borrowers with 𝗺𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗹𝗼𝗮𝗻 𝗺𝗼𝗱𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 .

(The Mortgage Assistance Relief Services (MARS) Rule helps to protect distressed homeowners from foreclosure-prevention scams.)

39
Q
  1. MARS bans collecting fees until
A

homeowners have an acceptable written offer from the lender or servicer.

40
Q
  1. MARS prohibits advising consumers
A

To 𝒅𝒊𝒔𝒄𝒐𝒏𝒕𝒊𝒏𝒖𝒆 𝒄𝒐𝒎𝒎𝒖𝒏𝒊𝒄𝒂𝒕𝒊𝒐𝒏 𝒘𝒊𝒕𝒉 𝒍𝒆𝒏𝒅𝒆𝒓𝒔.

41
Q
  1. The Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws require companies to
A

𝙛𝙞𝙡𝙚 𝙖 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙮 𝙏𝙧𝙖𝙣𝙨𝙖𝙘𝙩𝙞𝙤𝙣 𝙍𝙚𝙥𝙤𝙧𝙩 𝙬𝙞𝙩𝙝 𝙩𝙝𝙚 𝙄𝙍𝙎 𝙛𝙤𝙧 𝙘𝙖𝙨𝙝 𝙩𝙧𝙖𝙣𝙨𝙖𝙘𝙩𝙞𝙤𝙣𝙨 𝙚𝙭𝙘𝙚𝙚𝙙𝙞𝙣𝙜 $10,000 𝙞𝙣 𝙤𝙣𝙚 𝙙𝙖𝙮.

(The act requires financial institutions to keep detailed records of cash transactions exceeding $10,000(withdrawing, depositing, or transporting).)

42
Q
  1. The BSA act also requires that loan originators report suspicious activity that might be a sign of tax evasion, money laundering, or other possible criminal activity. MLOs are required to report any suspicious activity exceeding $5,000.
A
43
Q
  1. Money laundering involves bringing illegally obtained funds into and out of the financial system in a manner that evades law enforcement
A

(Laundered funds are often linked to such serious crimes as terrorism, arms smuggling and drug trafficking)

44
Q
  1. Under the BSA/AML the government requires financial intuitions to file Suspicious Activity Reports (SARs) within -
A

30 days of detecting suspicious activity if the perpetrator is an identifiable person, or within 60 days of initial Detection if the perpetrator cannot be identified.

45
Q
  1. The BSA act requires financial institutions to keep detailed records of cash transactions exceeding
A

$10,000 (withdrawing, depositing, or transporting).

46
Q
  1. BSA/AML The act also requires that loan originators report suspicious activity that might be a sign of tax evasion, money laundering, or other possible criminal activity,
A

MLOs are required to report any suspicious activity exceeding $5,000.

47
Q
  1. Copies of the SAR reports must be kept for-
A

at least five years.

48
Q
  1. The Homeowner’s Protection Act (HPA) requires lenders to cancel -
A

the PMI when the LTV reaches 78% of the original purchase price.

49
Q
  1. Under the HPA, Borrowers can request a cancellation when it -
A

reaches 80%, which will usually be granted if they have a good payment history.

50
Q
  1. HPA Allows borrowers to accelerate the cancellation date by making -
A

additional payments that bring the LTV to 80%.

51
Q
  1. Lenders may require evidence that the value of the property has not declined below its -
A

original value and that the property does not have a second mortgage, such as a home equity loan.

52
Q
  1. The E-Sign Act allows
A

electronic records and electronic signatures to be valid

whenever a regulation requires a document to be in writing as long as the consumer has consented to its use.

53
Q
  1. The E-Sign Act ensured the validity and legality of -
A

contracts and documents that are entered into by electronic methods.

54
Q
  1. The E-Sign act, a party to a contract cannot be forced to use -
A

electronic signature methods and may sign in ink.

( also called “wet signature”. One party can use electronic signature method, while the other party to the contract can retain the right to sign the document personally (wet signature) )

55
Q
  1. The USA Patriot Act requires mortgage applicants to provide their
A

name, address, social security number or employee identification number and a government issued photo ID.

56
Q
  1. The USA Patriot Act increased the ability of law enforcement agencies to
A

search telephone, email, medical and financial records.

57
Q
  1. The USA Patriot Act was created to prohibit _____ ______ and the _______ _____ .
A

money laundering and the financing of terrorist activities.

58
Q
  1. The USA Patriot Act requires financial institutions to verify the -
A

𝗶𝗱𝗲𝗻𝘁𝗶𝘁𝘆 𝗼𝗳 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗵𝗼𝗹𝗱𝗲𝗿𝘀

(And compare the account names to names in a federal database of fugitives and suspected terrorists, establish an anti-money laundering policy and train employees on the policy)

59
Q
  1. Mortgage Acts and Practices (REG N) – deals with
A

Advertising of Mortgage Products

MAPS Regulation N was issued by the CFPB in order to prohibit false or misleading advertising of mortgage products.

60
Q
  1. MAPS applies to any “commercial advertisement” designed to produce a sale or to create interest in mortgage products or services. It is illegal to misrepresent any loan terms or conditions in an advertisement.
A

MAP IS REGULATION N

61
Q
  1. In general, Regulation N prohibits misleading claims by
A

mortgage lenders

(concerning government affiliation, interest rates, fees, cost, payments associated with the loan, and the amount of cash or credit available to the consumer in any commercial advertisement)

62
Q
  1. Copies of commercial communications and supporting documents must be kept for -
A

for2 years.

63
Q
  1. The HUD Equal Access Rule states that a lender cannot inquire about-
A

an applicant’s sexual orientation or gender identity

Affinity 844 Flashcards (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions