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95 Cards in this Set
- Front
- Back
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Dodd Frank Act and CFPB started on what date? |
July 2010 |
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CFBP stands for what? |
Consumer Financial Protection Bureau |
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RESPA stands for what? |
Real Estate Settlement Procedures Act |
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RESPA regulation? |
Regulation x, title 12 CRF 1024 (Rexpa) |
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RESPA was under the authority of who? |
HUD (Housing and Urban Development) |
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Who was RESPA recently transferred to? When did this happen? |
CFPB (Consumer Financial Protection Bureau) January 1, 2012 |
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TRID stands for what? |
TILA-RESPA Inegrated Disclosure Rule |
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What two disclosures did TRID combine? |
RESPA section 4 & 5 + TILA |
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What is no longer used for transactions under the TRID rule? |
GFE (Good Faith Statement) HUD-1 settlement statement Special information booklet |
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How does RESPA protect customers? |
Regulating settlements & closing processes Timely disclosures Standards & requirements business to business Mutual business relationships |
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RESPA section 8 |
Protects against kickbacks & excessive fees for services |
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RESPA section 10 & 6 |
Standards for escrow accounts & servicing |
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Year RESPA was started? |
1974 |
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Affiliated Business Arrangement Disclosure (RESPA) |
Ownership interest of more than 1% in a specific provider & refers clients to them |
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Changed Circumstances include: (RESPA) |
Include: Nature, war, disaster, changes in client info, new info, boundaries, flood, environmental |
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Changed Circumstances do NOT include: (RESPA) |
Name, income, address, estimate, loan amount sought, credit report, etc. UNLESS... found inaccurate or market price fluctuates |
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Federally Related Mortgage Loan |
Any loan other than temp financing (NOT construction loans) Made by a creditor Secured by first or subordinate lien Residential REAL property Single/multi family |
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Home equity loan disclosures |
Demanding full payment of balance Denying credit extension Reducing credit limit |
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Act for pregnant woman decrimination |
ECOA |
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Close-end home equity loan secured by second mortgage will become HPML if it exceeds what % |
3.5% |
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"E-Sign Act" stands for... |
Electronic Signatures in Global & National Commerce Act |
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Status of application time frame including incompletion errors.. |
30 days |
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Who conducts investigations on mortgage fraud? |
HUD, FBI, IRS |
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Who Prosecutes cases of mortgage fraud? |
The Department of Justice |
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What is required of an Adjustable Rate Home Equity Plan? What is it exempt from? |
What you should know, frequency of rate, APR, fees, transaction requirements. Exempt from TRID Rule so NO loan estimate or loan disclosure |
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Post-consummation forms are require for what kind of loans? |
Close-end ARMs secured by principle residence |
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Submitting false info to obtain a federally-covered loan for a borrower subjects you to... |
>1,000,000 fine & Imprisonment |
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Licensed MLOs must pass a test but do registered MLOs have to? |
NO They are exempt cause they work at federal regulated institutions |
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How many days must services respond to a Qualified Written Request? |
5 days |
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Penalties for paying or accepting an illegal referral fee are... |
>10,000 & one year in prison |
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CHARM booklet for ARMs is from which Act? |
TILA |
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Intention of Safeguards Rule... |
Security program to ensure personal financial privacy |
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When starting a HOEPA loan you must base it on what? |
Collateral & ATR (Ability to Repay) |
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During foreclosure, the borrower can use their 3 year right to rescind if.. |
The finance charge for the loan was understated by > $35 |
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HMDA (Home Mortgage Disclosure Act) financial reporting go to who? |
HOEPA (Home Ownership Equity Protection Act) |
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Gramm-Leach-bliley Act requires the Privacy Notice when? |
If they intend to share consumer info |
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What are High cost mortgage loans allowed to do and not do? |
Allowed: Variable interest rate NOT allowed: Negative Amor, balloon pmt, PPP |
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Escrow accts for higher priced mortgage loans are required for how long? |
5 years |
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When two appraisals are required.. who pays? |
Borrower only pays for one NOT two |
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When denied a loan, what doc should you receive and at what time frame? Who requires it? |
Adverse Action Notice within 30 days ECOA |
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Primary reason for HPML Special Appraisal requirements.. |
Avoiding inflated appraisals to flip properties |
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Discrimination for collecting public assistants violates... |
ECOA |
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When advertising low payments what else is missing? |
Lenders must inform borrowers that Balloon Pmts may happen if only minimums are paid |
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When APR is inaccurate what do you do? |
Must re-disclose/wait to close for 3 days |
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What would require a rate/payment change disclosure? How many days before the rate changes? |
ARM with 45 day Look-Back Period 60 days |
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Misrepresentation of government endorsement in ads prohibits who? |
TILA regulation Z Oct 1, 2009 Prohibition of 7 practices |
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What does ECOA allow to be questioned? |
Immigrant status or ID |
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ATR rule doesn't apply to.. |
Equity |
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Redlining |
Refusing to do business in specific areas |
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RESPA prohibits what? |
The exchange or gifting of anything of value (that you could exchange for $ (a notepad wouldn't count) |
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Who ensures the borrower gets a closing disclosure? |
The Creditor |
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What federal legislation identifies or asks for info having to do with discriminatory practices? |
HMDA Home Mortgage Disclosure Act |
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What does a broker do? |
Refers people to creditors |
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Servicing rule exemption for RESPA |
Small services (non-profit servicing 3,000 loans) |
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What report is obtained through interviews? |
Investigated Consumer Report Character, reputation, characteristics, mode of living |
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Average charges are not used for any type of insurance but what are borrowers charged for? |
Home inspection, credit report, appraisals |
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Penalties from HMDA for failure to report data are.. |
Based on penalty matrix: Good faith, previous violations, financial resources |
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Who regulates mortgage loan advertising ? |
TILA regulation Z |
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Who checks if a company is not in compliance under ECOA? |
The company itself & they fix it themselves under regulation B |
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What is HOEPAs PPP for HCML (High Cost Mortgage Loans)? |
PPP >36 most after consummation PPP >2% of amount prepaid |
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What are service members exempt from? |
Two appraisals even if they move in early (Reassigned marines) |
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Advertisements that exceed Fair Market Value MUST say... |
"Interest is not deductible & borrower should consult tax advisor..." |
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A report using info through interviews is... |
An Investigative Consumer Report |
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Which law requires MLOs to pass an exam? |
S.A.F.E. Act |
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PMI helps borrowers by... |
Securing a loan when they have little cash to put down |
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Accepting a referral fee is a violation of what regulation & section? |
RESPA regulation x, section 8 |
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When does consumer become contractually obligated? |
Consummation |
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Who takes care of Identity theft? |
FACTA |
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What does FACTA require for Identity Theft Claims? When do they have to respond by? |
Written claim, proof, identification 30 days |
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When is an HPML appraisal disclosure required? |
3 business days after application |
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UDAAP refers to practices that are... |
Unfair, deceptive, abusive |
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HPA (Homeowners Protection Act) applies to: |
Lenders, loan servicers, insurance |
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ECOA applies to the extension of credit for... |
Residential, business, commercial, agricultural |
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What level of responsibilities does the S.A.F.E Act require before licensees are approved? |
Credit score, net worth, surety bond, pmt into state fund |
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What loan does RESPA not cover? |
Assumable loans |
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Loans that are subject to HMDA... |
Purchase loans, home improvement, refinances |
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Transfer of service provider must be given within... |
60 days |
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Second appraisals are required if... |
Occupied 90 or fewer days prior New purchase price is 10% higher |
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S.A.F.E. Act is part of which parent legislation? |
Title V of HERA (Housing and Economic Recovery Act) Established in 2008 |
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6 factors that constitute an application... |
Name Address Income SS # Property value Loan amt |
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What are services required to respond to within 5 days? |
Qualified written request |
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ECOA requires corrective action when... |
It is more than likely that a violation has occurred through self-testing (Not an omission of guilt) |
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What law restricts sharing of consumer info? |
Gramm-Leach-Bililey Act |
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What was enacted because women were not treated equal to men? |
ECOA |
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TILA main purpose.. |
Requiring disclosures on the cost of credit |
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Escrow accts for higher-priced mortgage loans must be maintained for a minimum of.. |
5 years |
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How long can you contact someone inquiring on a loan? |
Up to 3 months |
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FTC Read Flag Rule was created under who? What do they do? |
FACTA (Fair and Accurate Credit Transactions Act) Identify, detect, respond to red flags of identity theft |
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Section 10 requires a refund of escrow analysis overage of what amount? When is it due to be refunded? |
Overage of $50 or more Due in 30 days |
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What must be included in finance charges? Required by who? |
Origination fees TILA |
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How much is fined by calling someone on the National Do Not Call Registry? |
Up to 16,000 per occurrence |
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Dodd Frank Act is what title? |
Title X |
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What are 2 major components of the Dodd Frank Act? |
Consumer Financial Consumer Protection Act Mortgage Reform & Anti-Predatory Lending |
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Closing disclosure can be requested when? |
1 day prior to closing |
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MLO fee is determined by? |
Total loan amount, nothing else |
