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SAFE Exam > SAFE Exam > Flashcards

SAFE Exam Flashcards

1
Q

Which of the following documents would Unique Identifier (NMLS #) appear on?

A
  1. 1003 Loan Application
  2. Promissory Notes
  3. Mortgages
  4. Trust Deeds
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2
Q

Which of the following documents would Unique Identifier (NMLS #) NOT appear on?

A

Appraisal Reports

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3
Q

NMLS number is also known as?

A

Unique Identifier

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4
Q

What does UST stand for?

A

Uniformed State Test

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5
Q

Which is the one for individual application?

A

MU4

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6
Q

What is the passing score for the exam?

A

75%

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7
Q

If you fail the exam, how long do you have to wait before your next exam?

A

30 Days

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8
Q

If you fail three times, how long do you have to wait?

A

180 Days (6 months)

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9
Q

In order to keep your license, what do you have to do?

A

8 hrs of continued education. Must be completed before Dec. 31st

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10
Q

When does your license expire?

A

12/31 unless they renew during renewal period.

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11
Q

What is the renewal period for NMLS License?

A

Nov. 1 - Dec. 31

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12
Q

How long is your license valid?

A

5 years

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13
Q

Equal Credit Opportunity Act is which Regulation?

A

Regulation B

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14
Q

What law says that a borrower has 90 days to request a copy of the appraisal?

A

ECOA (Equal Credit Opportunity Act), Regulation B

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15
Q

What law says the lender has 30 days to deliver a copy of the appraisal?

A

ECOA (Equal Credit Opportunity Act), Regulation B

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16
Q

How many days does a borrower have to request a copy of the appraisal?

A

90 days (3 months)

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17
Q

How many days does a lender have to deliver a copy of the appraisal?

A

30 days (1 month)

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18
Q

Which Law/Regulation allows the borrower to challenge the VALUE of the appraisal?

A

ECOA (Equal Credit Opportunity Act), Regulation B

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19
Q

If the application for credit is DENIED base on the Appraisal (Value), a borrower has how many days to request a copy of the appraisal?

A

90 days (3 months)

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20
Q

If the application for credit is DENIED base on the Appraisal (Value), a lender has how many days to deliver a copy of the appraisal?

A

30 days (1 month)

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21
Q

HMDA stands for…

A

Home Mortgage Disclosure Act

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22
Q

HMDA is which Regulation?

A

Regulation C

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23
Q

Regulation C is also known as…

A

HMDA (Home Mortgage Disclosure Act)

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24
Q

HMDA allows regulators to do what?

A

Reg C - See where the discrimination takes place.

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25
Q

Regulation B is also known as…

A

ECOA (Equal Credit Opportunity Act)

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26
Q

Where is Home Mortgage Disclosure Act found?

A

Section 10 (X)

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27
Q

What law allows uses Section 10 to identify possible discriminatory practice?

A

HMDA (Home Mortgage Disclosure Act), Regulation C

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28
Q

Which Section of the 1003 collects information for government monitoring purposes?

A

Section X

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29
Q

RESPA stands for…

A

Real Estate Settlement Procedure Act

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30
Q

RESPA is which Regulation?

A

Regulation X

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31
Q

TILA stands for…

A

Truth In Lending Act

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32
Q

TILA is which Regulation?

A

Regulation Z

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33
Q

TILA deals with what?

A

Credit, APR, and Advertising of Consumer Laws

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34
Q

What law deals with credit, APR, and advertising of consumer laws?

A

TILA (Truth in Lending Act), Regulation Z

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35
Q

HPA stands for…

A

Homeowners Protection Act

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36
Q

HPA deals with what?

A

PMI (Private Mortgage Insurance)

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37
Q

PMI applies to what type of loans?

A

Conventional Loans

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38
Q

PMI does NOT apply to what type of loans?

A

Government Loans

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39
Q

PMI is required when borrower pays less than what percentage of down payment?

A

20%

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40
Q

Who does PMI protect?

A

The Lender

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41
Q

SAFE Act stands for…

A

Secure and Fair Enforcement Act

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42
Q

HERA stands for…

A

Housing and Economic Recovery Act

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43
Q

What law created the SAFE Act?

A

HERA (Housing and Economic Recovery Act)

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44
Q

HERA created which Act?

A

SAFE (Secure and Fair Enforcement Act)

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45
Q

FCRA stands for…

A

Fair Credit Reporting Act

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46
Q

FCRA (Fair Credit Reporting Act) is which Regulation?

A

Regulation V

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47
Q

What law deals with credit application?

A

ECOA (Equal Credit Opportunity Act), Regulation B

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48
Q

What law deals with credit reports & credit reporting agencies?

A

FCRA (Fair and Credit Reporting Act), Regulation V

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49
Q

What does FACT Act (FACTA) stand for?

A

Fair and Accurate Credit Transactions Act

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50
Q

What law deals with Identify Theft?

A

FACTA (Fair and Accurate Credit Transactions Act)

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51
Q

What law has Section 1004 rules?

A

FACTA (Fair and Accurate Transactions Act)

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52
Q

Section 1004 rules are also known as…

A

Red Flag Identity Theft Rules

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53
Q

GLB (GLBA) stands for…

A

Gramm Leach Bliley Act

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54
Q

GLB has three policies. What are they?

A

SPF (Safeguarding, Pretexting, and Financial Privacy)

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55
Q

What law says that there must be a Safeguarding policy?

A

GLB (Gramm Leach Bliley)

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56
Q

What is a Safeguarding Policy?

A

A policy on how companies must keep a borrower’s information safe.

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57
Q

What is a Pretexting Policy?

A

A policy to keep other from getting access to a borrower’s information under false pretenses (pretenders).

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58
Q

What law says that there must be a Pretexting Policy?

A

GLB (Gramm Leach Bliley Act)

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59
Q

What law says that there must be a Financial Privacy Policy?

A

GLB (Gramm Leach Bliley Act)

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60
Q

What is a Financial Privacy Policy?

A

A policy that governs the collection of non-public information and how it is shared with affiliates.

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61
Q

What law says that a lender/creditor must give a borrower opportunity to Opt-In or Opt-Out of non-public information from being shared?

A

Financial Privacy Policy of GLB (Gramm Leach Bliley) Act

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62
Q

HOEPA stands for…

A

Homeownership and Equity Protection Act

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63
Q

Section 32 of HOEPA deals with…

A

High Cost Loans

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64
Q

Section 35 of HOEPA deals with…

A

High Priced Loans

65
Q

HOEPA loans are part of which larger law?

A

TILA (Regulation Z)

66
Q

AfBA/ABA stands for…

A

Affiliated Business Arrangement

67
Q

If you own more than what percent of the affiliated business, are lenders then required to disclose the arrangement?

A

1%

68
Q

When must a lenders disclose to a borrower of the Affiliated Business Arrangement disclosure be made if they own 1% or more?

A

Immediately (Prior to doc sign)

69
Q

Which of the following can you not discriminate against according to Civil Rights Act?
1. Age, 2. Race, 3. Religion, 4. All of the above

A

Race

70
Q

Escrow account is also known as…

A

Impound account aka Reserve account

71
Q

What type of a mortgage does an escrow account create?

A

Budget Mortgage

72
Q

What is a Budget Mortgage?

A

PITI Mortgage

73
Q

What does CFPB stand for?

A

Consumer Financial Protection Bureau

74
Q

What entities created CFPB?

A

Dodd-Frank Act and Consumer Finance Protection Act

75
Q

What law does not report to CFPB (Consumer Financial Protection Bureau)?

A

FHA (Fair Housing Act)

76
Q

What law deals with Settlement Services?

A

RESPA - Regulation X

77
Q

What type of property does RESPA deal with?

A

1-4 unit Residential Property (owner occupied)

78
Q

Which of the following is covered by RESPA?

  1. All cash sales
  2. Rental Property more than 4 units
  3. Commercial Property
  4. Agricultural Property
  5. 1-4 unit Residential Property
A

1-4 unit owner occupied property

79
Q

True or False: Violating RESPA could result in a fine up to $10,000 and/or imprisonment up to one year.

A

True

80
Q

What law has penalty of $10,000 fine and/or imprisonment up to one year?

A

RESPA - Regulation X

81
Q

RESPA Section 6 deals with what?

A

Mortgage servicing and mortgage servicing abuses.

82
Q

What law deals with mortgage servicing and mortgage servicing abuses?

A

RESPA Section 6

83
Q

RESPA Section 8 deals with what?

A

Kickbacks, fee-splitting, and unearned fee?

84
Q

What law prohibits giving/accepting kickbacks, fee-splitting, and unearned fees?

A

RESPA Section 8

85
Q

RESPA Section 9 deals with what?

A

Deals with title insurance

86
Q

What law prohibits a seller from requiring the home buyer to use a particular title insurance company as a condition of a sale?

A

RESPA Section 9

87
Q

RESPA Section 10 deals with what?

A

Escrow Accounts

88
Q

Lender may not required a borrower to pay into escrow account no more than what portion of annual disbursement EACH MONTH?

A

1/12th

89
Q

Lender is allowed to take up to how many months of CUSHION at closing?

A

2 months (1/6th the annual amount)

90
Q

What law says that a lender must disclose an Annual Escrow Analysis?

A

RESPA Section 10

91
Q

At what point will a lender be required to return money taken from an escrow accounts?

A

Excess over $50

92
Q

What makes up a complete application?

A
  1. Name(s) of borrower
  2. SSN for each borrower
  3. Gross monthly income of borrowers(s)
  4. Loan amount sought
  5. Address of subject property
  6. Estimate of property value
93
Q

Which of the following is NOT allowed on the address of subject property?

  1. UNK
  2. NA
  3. TBD
A

NA

94
Q

In which instances, a lender does NOT have to provide the Initial Disclosure?

A
  1. Borrower withdraws the application

2. Lender turns down the loan before the 3 business-day period end

95
Q

What are the Initial Disclosures?

A
  1. Home Loan Toolkit (RESPA) - Purchases Only
  2. Loan Estimate (TILA)
  3. Mortgage Servicing Disclosure Statement (RESPA)
  4. List of HUD Approved Home Counselors (RESPA)
96
Q

When a borrower completes the application, the Initial Disclosures must be provided within how many days?

A

At or within 3 business days of the application

97
Q

Loan Estimate was formerly known as…

A

Good Faith Estimate

98
Q

What law requires a borrower to get a Loan Estimate?

A

TILA (Truth in Lending Act)

99
Q

What law states that a borrower must get a Loan Estimate at/or within 3 days of the application?

A

RESPA (Real Estate Settlement Procedure Act)

100
Q

Before Settlement a borrower must receive what disclosures from a lender?

A
  1. Affiliated Business Arrangement (AfBA) Disclosure (1% or more ownership) (RESPA)
  2. Closing Disclosure: 3 days prior to consummation (TILA)
101
Q

What law states that a borrower must receive a Closing Disclosure?

A

TILA (Truth in Lending Act)

102
Q

What law states that a borrower must receive a Closing Disclosure 3 days prior to consummation and again at consummation?

A

RESPA (Real Estate Settlement Procedure Act)

103
Q

When must a borrower receive a Servicing Transfer Statement (Goodbye Letter)?

A

15 days prior to transfer

104
Q

What law requires a lender to give a borrower a Servicing Transfer Statement?

A

RESPA (Real Estatement Settlement Procedure Act)

105
Q

What fees may be charged prior to delivering the Loan Estimate?

A

Credit Report Fee

106
Q

How long is a Loan Estimate good for?

A

10 business days

107
Q

What is TIP?

A

Total Interest Percentage

108
Q

Where do you find the information about the Rate Lock?

A

Loan Estimate

109
Q

Who is ultimately responsible for giving the Closing Disclosure to the borrower?

A

Lender (creditor)

110
Q

When would a borrower get an new Closing Disclosure?

A
  1. Changes in the loan APR
  2. Change in the loan product
  3. Addition of a prepayment penalty
111
Q

What law requires a lender to disclose the complete cost of credit to a loan applicant?

A

TILA (Regulation Z)

112
Q

What law gives a borrower a 3-day right of rescission rule?

A

TILA (Regulation Z)

113
Q

What types of loans gives a borrower 3-day right of rescission?

A

HELOC/REFI’s

114
Q

When a borrower exercises 3-day right of rescission, creditor must return any money collected within how many days?

A

20 Calendar Days

115
Q

How many copies a Notice of Right to Rescind a borrower must receive?

A

Two Copies

116
Q

If a borrower was not properly notified of the Right to Rescind, how long will the Right to Rescind period be extended to?

A

3 Years

117
Q

TILA applies to transactions that are payable by written agreement with how many installments?

A

More than 4 payments

118
Q

How long must TILA disclosures be kept?

A

2 years

119
Q

How long must Loan Estimate be kept?

A

3 years

120
Q

How long must Closing Disclosure be kept?

A

5 years

121
Q

What does CHARM stand for?

A

Consumer Handbook on Adjustable Rate Mortgage

122
Q

When would a borrower receive When Your Home is on the Line Disclosure?

A

HELOC/REFI

123
Q

What is another word for APR?

A

Effective Rate

124
Q

Interest Rate is otherwise known as…

A

Note Rate and Nominal Rate

125
Q

What is the penalty for single violation of TILA?

A

$5,000/Day

126
Q

What is the penalty for reckless violation of TILA?

A

$25,000/DAY

127
Q

What is the penalty for violating TRID (TILA-RESPA Integrated Disclosure)?

A

$1,000,000

128
Q

What does MDIA stand for?

A

Mortgage Disclosure Improvement Act (3/7/3 Rule)

129
Q

Mortgage Disclosure Improvement Act is also known as…

A

3/7/3 Rule

130
Q

Under MDIA, initial disclosure must be made how many days upon receiving completed application?

A

3 business day

131
Q

Under MDIA, what is the earliest a borrower can consume a loan?

A

7 business day

132
Q

Under MDIA, how many days prior to consummation must redisclosure be made?

A

3 business day

133
Q

A redisclosure is required if APR is above or below initial disclosure by what percent on a 30 year fixed loan?

A

1/8% (.125)

134
Q

A redisclosure is required if APR is above or below initial disclosure by what percent on NOT a 30 year fixed loan?

A

1/4% (.25)

135
Q

Under what circumstance can redisclosure be waived?

A

Bona fide financial emergency

136
Q

Business day according to TILA

A

All calendar days except Sunday and legal public holidays

137
Q

No additional disclosures are required on advertising IF

A

Ad contains only APR or use generic terms.

138
Q

What is considered business day for “initial” Loan Estimate?

A

Any day in which the bank is open for business

139
Q

Qualified Mortgage protects who? The borrower or the lender?

A

The lender because it received “safe harbor” legal protection if a borrower defaults.

140
Q

HOEPA (home ownership & equity protection act) is part of which act?

A

Truth in Lending Act (Regulation Z)

141
Q

HOEPA covers which section?

A

Section 32 & 35

142
Q

What does APOR stand for?

A

Average Prime Offer Rate

143
Q

Under ECOA (Equal Credit Opportunity Act) how long must creditor notify applicants of their lending decision?

A

Within 30 days

144
Q

What are protected class under Fair Housing Act?

A

sex, race, religion, color, national origin

145
Q

What are protected class under ECOA?

A

sex, race, religion, color, national origin, age, marital status & public assistance

146
Q

How long must ECOA records be kept?

A

25 months

147
Q

How long does a borrower have to take civil action against a lender if ECOA violation has occurred?

A

24 months

148
Q

If a credit application is denied, a consumer has how many days to request a copy of the appraisal?

A

90 days

149
Q

If a consumer requests a copy of the appraisal, lender has how many days to provide the appraisal copy?

A

30 days

150
Q

If application was approved, when will a borrower receive a copy of the appraisal?

A

3 business days prior to consummation

151
Q

What law led to creation HMDA (Home Mortgage Disclosure Act)?

A

Redlining

152
Q

How long does a borrower have to sue under FHA?

A

1 year

153
Q

When can a borrower request cancellation of PMI?

A

80% LTV

154
Q

When must a lender cancel PMI?

A

78% LTV

155
Q

HMDA (Home Mortgage Disclosure Act) is also known as?

A

Regulation C

156
Q

How often must lenders submit LAR (Loan Activity Reports) to HMDA?

A

Monthly

157
Q

What law requires lenders to submit reports regarding ethnicity, race and sex of all applicants?

A

HMDA (Regulation C)

158
Q

Which section contains the government monitoring information?

A

HMDA (Section 10)

SAFE Exam (1 decks)

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