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134 Cards in this Set
- Front
- Back
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The TILA/RESPA Integrated Disclosure Rule amends RESPA sections ____ and ___.
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4/5
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A change that makes the APR inaccurate by increasing it more than 1/8th for a regular loan after the initial disclosure will require a new ______ day waiting period.
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3
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The Closing Disclosure must be provided to the applicant at least______ days prior to consummation.
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3
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A revised Loan Estimate must be delivered to the applicant no later than _____ days prior to consumamtion.
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4
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The SAFE Act passing Score is ______
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75%
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The SAFE Act pre-license education requirement includes ______ hrs federal law, _____ hrs Ethics, ______ hrs non-traditional lending products, and ______ hrs electives.
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3/3/2/12
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The SAFE Act annual renewal education requirements are ______hrs federal law, ______hrs ethics, _______hrs non-traditional lending and ______ hour elective.
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3/2/2/1
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The national test has _______ questions and ____ are scored.
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125/115
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A State regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $________ per violation.
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$25,000
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A Consumer Reporting Agency (CRA) must address disputes within ________ days.
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30
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The Red Flag identity theft program is a mandatory program and includes ______ red flag items created by the FTC.
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26
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The Telemarketing Sales Rule requirement for businesses that communicate with consumers that are on the Do-Not-Call registry are the following: A business can contact a consumer up to______ months after the final transaction, _____ months if only an inquiry was made and never if the consumer contacts the business to not to call them.
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18/3
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The potential criminal penalty for mortgage fraud is up to $_________ and _________ in prison or both.
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$1,000,000; 30 years
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Mortgage loan compensation agreement records must be retained for _______ years.
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3
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The Dodd Frank Act Title ______ regulates the mortgage industry.
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IV
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The Dodd Frank Act requires the lender to provide a copy of the appraisal _____ days prior to closing a loan.
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3
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ECOA record retention is ______ months.
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25
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Liability for violating ECOA could result in a penalty of up to %________ and in a class action suite $_______ and _____% of net worth whichever is less.
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$10,000; $500,000 /1%
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The Home Mortgage Disclosure Act (HMDA) requires reporting for depository institutions that have assets greater than $_______ and non-depository institutions that close more than ______ owner occupied loans a year and or have 10 million in assets including the assets of the parent company.
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43 million/100
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Violation of the Fair Housing Act could result in criminal penalties of up to $_______ and or _______ year in prison.
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$100,000/1
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The Fair Credit Reporting Act (FCRA) is Title _____ of the Consumer Credit Protection Act.
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VI
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FCRA was permanently extended by the Fair and Accurate Credit Transaction Act (FACTA) in ________.
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2003
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Under FCRA a bankruptcy may be reported on a credit report for ______ years and other derogatory credit for a period of ______ years.
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10/7
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A one phone call fraud alert request can include an alert on a credit file for _______days and _______ years if a police report is filed and submitted to the CRA.
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90/7
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Under HOEPA If the points and fees charged by the lender exceed _____% of the loan amount then the loan is a “high cost loan”
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5%
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A loan that exceeds the HOEPA thresholds for APR and points and fees is subject to section CFR 1026.___ of TILA/Reg. Z. Also known as a section____ loan and a “high cost loan”
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32/32
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A “Higher Priced Mortgage Loan” HPML uses the “Average Prime Offer Rate” APOR as a threshold. If the APR for a first lien loan exceeds the APOR by ______% or greater or by _______% or greater for a second or subordinate lien loan then the loan is subject to the requirements of section 1026.35 of TILA/REG.Z
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1.5%/3.5%
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If a loan is a HPML loan then the minimum period to escrow for taxes and insurance, regardless of the LTV, is _______ years
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5
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The criminal penalty for violating Regulation Z/TILA is up to a $________ fine and or _______ years in prison.
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5000/1
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The individual civil penalty for violating TILA/Reg. Z is a minimum of $______ up to a maximum of $_________.
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$400/$4000
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The civil penalty for a class action suit is $________ or ___% of net worth which is less.
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$500,000 and 1%
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The Equal Credit Opportunity Act (ECOA) is Title _____ of the Consumer Credit Protection Act.
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VII
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ECOA requires a notice of action taken notice to be provided within ______ days of receiving an application for credit, denying an application or denying an incomplete application.
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30
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ECOA requires a notice of action taken within ______ days of a counter offer that is not accepted.
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90
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ECOA requires a copy of an appraisal or any evaluation of the subject property within ______ days prior to the loan closing, and ______ days after it is determined the loan will not close.
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3/30
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If a person on title does not receive the notice of the right to rescind then the right to rescind the transaction extends to ______ years.
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3
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If a borrower rescinds a loan the lender has _______ days to return all monies paid in connection with the loan and cancel the security instrument.
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20
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The record retention period for retaining the TILA disclosures is ______ years.
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2
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The Home Owners Equity Protection Act (HOEPA) has established the “annual prime offer rate” APOR , as the basis for determining if a loan is a high cost loan. If the APR exceeds the APOR by more than _______% for a first lien loan and _____% for a second lien loan, the loan is a “high cost loan”
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6.5%/8.5%
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As a general rule the APR is considered accurate if it is not more than _____ of 1 percent above or below the previously disclosed APR on regular transactions.
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1/8th
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The Mortgage Disclosure improvement Act (MDIA) has a ___, _____, ______ rule. Only the credit report fee may be charged before the applicant has received the required early disclosures, the lender must wait ______ days before closing the loan after the early disclosures has been delivered and if there has been an APR tolerance violation the lender must re-disclose the closing disclosure and wait an additional _____ business days to close.
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3,7,3; 7/3
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A borrower has until midnight of the _____ business day to rescind a loan on a primary residence. Saturday is included in the rescission days.
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3rd
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The civil penalty for violating RESPA section 8 is ______ times the amount of the money received.
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3
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The Truth-In-Lending Act is Title _____ of the Consumer Credit Protection Act.
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1
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If there is an ARM loan, the CHARM booklet and the specific ARM program disclosure are considered early disclosures and are required to be delivered to the borrower within ______ business days of receiving the application.
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3
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How much can the creditor or closing agent charge the borrower for preparing the Closing Disclosure?
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zero
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Escrow collection and other requirements are covered under RESPA section :
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10
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An analysis of an escrow account must be done _______ a year.
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once
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The section of RESPA that addresses kickbacks and excessive fees is RESPA section:
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8
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RESPA records must be retained for a period of _______ years.
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5
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The criminal penalty for violating RESPA is up to a $________ and ______ year in prison or both.
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$10,000/1
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The origination fee on the Loan Estimate has a _____ tolerance.
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zero
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The period to provide a refund for a tolerance violation on the Loan Estimate is______ days after consummation.
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60
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The lender is allowed to collect a _____ month cushion reserve on an escrow account.
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2
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After an annual escrow account analysis if there is a surplus of greater than $_____ the lender has _____ days to send a check to the borrower for the surplus amount.
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$50/30
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If there is a shortage in the escrow account, after the annual analysis, greater than one month escrow, the lender can add the amount to the total escrow amount and collect it over a _____ month period.
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12
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The servicing disclosure requirements are covered under RESPA section :
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6
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For _____ days from the date of transfer the new servicer may not charge the borrower a late fee or report a negative rating to the consumer reporting agency.
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60
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The borrower has the right to review the Closing Disclosure ______ day(s) before consummation.
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1
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RESPA does not cover loans over _____ acres but those loans are covered under TRID.
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25
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RESPA and TRID requires that early disclosures be provided to the consumer no later than ______ business days after receiving the loan application unless the loan is denied within ______ days.
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3/3
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Most third party fees on the Loan Estimate have a _____ % tolerance
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10%
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The borrower has a minimum of ______ business days to accept the estimate of charges on the Loan Estimate.
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10
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The Loan Estimate has _____ pages.
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3
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A servicer must acknowledge a written request from a borrower within _____ days and respond to the issue within ____ days.
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5/30
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A servicer who transfers a loan to another servicer must notify the borrower in writing of the impending transfer within ______ days prior to the transfer.
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15
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A servicer receiving the transferred loan must notify the borrower in writing within _____ days of receiving the transferred loan.
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15
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One discount point is equal to ____% of the loan.
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1%
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_______ basis points equal ______ discount point.
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100/1
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The USDA Rural Housing Service loans will guarantee ______% in the event of the borrowers default.
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90%
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The USDA/RHS loans allow ______% financing.
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100%
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USDA/RHS loans have income limits based on ______% of the US median income.
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115%
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The minimum age to get a reverse mortgage is:
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62
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A temporary 2/1 buydown loan means that the note rate is reduced by _____% in year one and ______% in year two.
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2%/1%
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The up-front mortgage ins on a full qualifying FHA loan is
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1.75%
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A borrower can get a prorated refund of FHA mortgage insurance for _____ years when refinancing from one FHA loan to another.
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3
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VA allows _______% percent financing.
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100%
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On a VA guaranteed loan the maximum entitlement that is reflected on the certificate of eligibility is:
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$36,000
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If a VA borrower has already left the military the borrower must have a ________ reflecting an honorable discharge.
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DD214
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In the event of default VA will guarantee up to ______% of $______.
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25%/$417K
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VA charges an upfront funding fee for most borrowers, the funding fee for a borrower using their entitlement for the first time putting down less than 5% is:
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2.15%
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The minimum cash investment from a borrower on a FHA loan is:
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3.5%
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FHA allows _______% of the funds needed at closing to be a gift.
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100%
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Maximum seller contributions towards closing costs and prepaid items on a FHA loan are:
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6%
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The most popular FHA loan program is the Section ________ insured mortgage.
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203B
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After a borrower closes on a loan transaction they have _____ days to move in.
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60
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If a FHA borrower defaults the lender will receive _______% of the loss.
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100%
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Fannie Mae allows ____ % of the face amount of the insurance policy as the deductible.
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5%
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If a borrower is using rental income to qualify and the amounts are not already included on the tax return only _____% of the actual rental income can be considered. There is a _____% deduction for vacancy and maintenance.
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75%/25%
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A borrower who has more than ______% in commission earnings or who owns more than _____% of a company is considered self-employed.
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25%/25%
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A representative credit score is the middle of ______ scores or the lower of _____ scores and the lender will not underwrite a loan with _______ score.
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3/2/1
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A borrower can use _____ % of a stock portfolio account for reserves.
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70%
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A borrower can use_______% of the vested interest in a retirement account for reserves.
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60%
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Fannie Mae requires insurance coverage equal to the lesser of ______% of the insurable value of the improvements as determined by the insurer or the unpaid principal balance as long as it equals _____% of the insurable value.
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100%/80%
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Maximum age for credit documentation is _____ days and ________ days for new construction.
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90/120
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The minimum credit score for Fannie Mae and Freddie Mac is:
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620
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The IRS form number for a lender to obtain a copy of the borrower’s tax transcript is:
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4506T
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Non-taxable can be grossed up:
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25%
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To be used in loan qualification, income must meet the _______ year likelihood of continuance test.
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3
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Income qualifying requires the verification of the most recent _______ days of earnings.
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30
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If the LTV is equal to or greater than 90% the maximum seller contribution is _____ % of the lower of the sales price or appraised value.
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3%
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The maximum seller contributions for an investment property is:
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2%
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A limited cash-out refinance allows the borrower to get cash back, the lower of $_____ or _____%
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$2000/2%
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The full appraisal form for an interior and exterior inspection of a single unit property is the Fannie Mae form number_____.
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1004
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The exterior only appraisal for a single family unit is a Fannie Mae form number______.
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2055
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Seasoned funds have been in the bank for____ days or more.
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60
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If a debt has no payment associated with the debt, the underwriter will allocate _____ of the debt as a qualifying payment.
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5%
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The number of months non-traditional credit is evaluated, for loan approval is:
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12
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The Uniform Residential Loan Application is a Fannie Mae form number:
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1003
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The 1003 loan application has ______ sections.
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10
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Verification of employment (VOE) covers the most recent _______ years.
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2
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Verification of deposit (VOD) covers the most recent ____ days.
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60
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A verification of rental (VOR) and a verification of mortgage (VOM) covers the most recent ______ months.
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12
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The housing payment and total debt ratios as a percentage of gross monthly income for standard FHA financing are:
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31/43
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The housing payment and total debt ratios as a percentage of gross monthly income for standard VA financing are:
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41/41
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If a lender collects credit scores on a borrower the lender must disclose the scores to the borrower and must also give ____ reasons for each score.
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4
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The range for credit scores under the FICO scoring model is:
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300-850
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Payment history makes up what percentage of a credit score?
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35%
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The maximum points and fees for a $100,000 loan or greater on a qualified mortgage is:
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3%
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The maximum DTI for a General Qualified Mortgage is:
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43%
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The minimum time a creditor must keep a loan and not sell it to maintain QM status for Small Creditor QM and Balloon QM is:
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3 years
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The housing payment and total debt ratios as a percentage of gross monthly income for standard conventional financing are:
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28/36
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The SAFE Act defines a non-traditional mortgage as any product other than a ____ year fixed rate mortgage.
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30
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The maximum loan term for a qualified mortgage is:
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30 years
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The Home Owners Protection Act requires lenders to automatically terminate mortgage insurance when the loan reaches____ of the original value.
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78%
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Home Owners Protection Act allows a borrower to request cancellation of the mortgage insurance when the borrower can prove a ________ % equity position.
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20%
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A good payment history under the Home Owners Protection Act means no _____ lates in the last 24 months and no _____ lates in the past 12 months
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60/30 |
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A fully amortized 30 year loan would have payments based on _____ months and the loan is due in ______ months.
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360/360
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A 30 year mortgage with a 15 year balloon would have payments based on ____months and the loan would be due in____ months:
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360/180
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A bi-weekly payment plan has ____ monthly payments within the year.
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13
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Number of units allowed in residential mortgage financing:
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1-4
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In a conventional loan private mortgage insurance and escrows are required when loan-to-value is greater than:
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80%
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An adjustable rate mortgage that has a fixed rate for 5 years and can change annually is a_______ ARM. The rate is rounded to the nearest ______ .
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5/1; 1/8th
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Conventional conforming loan limit for a single family unit is:
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$417,000
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