Quiz Flashcards
The truth in lending act does not include
Appraisal fees. Appraisal fees are not considered finance charges in a residential mortgage loan
The truth in lending act requires disclosure to an applicant of
Discount points to be paid to the lender. Discount points are a finance charge
The principal agent problem refers to
The relative lack of consequences for a lenders agent (mortgage broker or loan originator) in the mortgage transaction.
Which document advises the consumer not to provide false information in relation to his loan application
The HUD special information booklet
ECOA requires that
An applicant must be given notification of the status of his loan application within 30 days
According to TILA a variation up to what amount is permitted for the annual percentage rate in a regular fixed mortgage transaction
1/8%
If the lender determines at any time during the life of the loan that the property securing the loan is located in a special flood hazard area and is not covered by flood insurance, then
The lender may force place the insurance coverage if the borrower does not promptly purchase it
When must loan applicants receive an adverse action notice if they cannot qualify for a loan
Within 30 days of the loan application
The practice of directing a borrower toward a subprime loan when he could qualify for a more standard loan is called
Steering
Before providing then GFE, it will be assumed that the loan originator has collected what 6 items
Borrowers name SS # Gross monthly income Property address Estimate value of property Amount of mortgage loan sought
The section of the Uniform Residential Loan Application titled “information for government monitoring purposes”
Must nite the applicants sex, race and ethnicity, based on the lenders visual observation or the applicants surname if the applicant refuses to provide this information
Under the bank secrecy act, each institution must develop a written ______ compliance program, which must be approved by the institutions board of directors
Anti-money laundering
Form #1003 is the
Uniform Residential Loan Application Fannie Mae (1003) Freddie Mac (65)
The minimum number of comps needed for a residential mortgage appraisal is
3
A loan secured by vacant or unimproved property is covered under RESPA only if
The loan proceeds will be used to construct or place a structure or a manufactured home on the real property within 2 years from the date of the settlement of the loan. RESPA does not apply to the extension of credit primarily for business, commercial or agricultural purposes
Foreclosure is initiated on a consumers principle dwelling that secures a credit obligation. At this time, the finance charge and other disclosures affected by the finance charge are considered accurate if they are above the amount required to be disclosed or if they are understated by no more than
$35
Regulation Z requires that an ad stating the down payment for a closed-end mortgage must include
Terms of the repayment of the loan