Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
80 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
What is the rescission period? |
3 day right to rescind |
|
|
|
True or False: A consumer can only have one primary residence or principal dwelling at a time |
True |
|
|
|
If there are specific errors within the disclosure, then the right to rescind is extended how many years? |
3 |
|
|
|
How many calendar days does the creditor have to return any money or property, or take any action that shows the termination of the transaction after the consumer rescinds? |
20 calendar days |
|
|
|
If the consumer elects to waive or modify the right to rescind a loan because of a bona fide financial emergency, the consumer must provide the creditor with a dated written statement that: |
Describes the emergency Specifically waives or modified the right to rescind Contains all of the concerned consumers signatures |
|
|
|
What Regulation do Advertising Disclosures Requirements fall under? |
Regulation Z |
|
|
|
Regulation Z’s provisions cover any advertisement for a consumer credit arrangement that involves all of the following: |
Must be offered or extended to a consumer Must be for personal, family, household, or agricultural purposes Must include a finance charge or be repaid in more than 4 installments |
|
|
|
As provided for in the TILA an advertisement is anything that is produced with the intent to: |
Sell a credit plan |
|
|
|
True or False: Educational and state-required materials are not counted as advertisements, unless they combine educational or state required information with a sales pitch |
True |
|
|
|
What is TILA? |
Truth In Lending Act |
|
|
|
What are trigger terms? |
Phrases that represent the most attractive features of a credit plan in the context of an ad. |
|
|
|
What must a variable rate credit ad say? |
The APR May increase or is subject to change. |
|
|
|
True or False: Creditors can advertise terms that will either be available for a limited time or available at a future date that is known to the creditor. |
True |
|
|
|
How many years must a creditor keep evidence of compliance with TILA regulations? |
3 years |
|
|
|
What is the criminal penalty for violating Regulation Z/TILA? |
Fined up to $5,000, be imprisoned for up to a year, or both. |
|
|
|
For failure to comply with TILA requirements, action may be brought in any US District Court or in any other competent court within how many years from the date on which the violation occurred? |
Within 1 year |
|
|
|
DU |
Desktop Underwriter |
|
|
|
ECOA |
Equal Credit Opportunity Act Prohibit credit discrimination |
|
|
|
EEM |
Energy Efficient Mortgage Help homeowners save money on their utility bill |
|
|
|
HELOC |
Home Equity Line of Credit use the equity in your home as collateral |
|
|
|
Mission of the Dodd-Frank Act: |
To promote the financial stability of the United States by improving accountability and transparency in the financial system. To protect consumers from abusive financial services practices. |
|
|
|
Consumer Financial Protection Bureau |
Tasked with regulating consumer financial products and services in compliance with the Federal Law |
|
|
|
Who audits the Consumer Financial Protection Bureau? |
Government Accounting Office and must report to the Senate Banking Committee and the House Financial Services Committee bi-annually |
|
|
|
Which other Federal Law has similar rules relating to advertising other than MAPS? |
TILA, Regulation Z |
|
|
|
On July 20, 2008 created the SAFE Act |
The Housing and Economic Recovery Act |
|
|
|
An MLO can retake the test___years after failing to maintain a valid license. |
5 Years |
|
|
|
Licensed MLO’s May work for how many entities? |
Only 1 Entity |
|
|
|
An individual may not engage in the business of a loan originator without first obtaining and maintaining all of the following except? |
Pass an annual exam |
|
|
|
Of the 8 hours of federally required continuing education, how many hours are devoted to ethics and fraud? |
2 hours |
|
|
|
What is a conventional home loan? |
A type of home buyer’s loan that is not offered or secured by a government entity. Instead, they are available through private lenders, such as banks, credit unions, and mortgage companies. However, some conventional mortgages can be guaranteed by two government-sponsored enterprises; the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). |
|
|
|
Types of Mortgage |
VA FHA USDA CONVENTIONAL OTHER |
|
|
|
URLA 1003 |
Uniform Residential Loan Application |
|
|
|
Purpose of Mortgage |
Purchase Refinance Construction Construction to Perm |
|
|
|
URAR 1004 |
Uniform Residential Appraisal Report An appraisal provides an estimate of the property value and is used when making an underwriting decision to help the lender evaluate whether or not the collateral is adequate security for the loan. |
|
|
|
Monthly Income Calculation |
Add weekly pay and overtime pay Multiply weekly pay by 52 weeks Divide yearly income by 12 months |
Overtime pay is multiplied by 1.5 |
|
|
ATR |
Ability to Repay |
|
|
|
Qualified Mortgage |
30 year fixed or standard fully amortized ARMS |
|
|
|
According to Dodd-Frank what is the max prepayment penalty’s on a qualified mortgage in the 2nd year? |
2% |
|
|
|
Debt Ratio for QM loans? |
43% |
|
|
|
HOEPA |
Homeownership Equity Protection Act This law tells you how much is too much to borrow. High cost loan |
|
|
|
APR Trigger |
If your APR is 6.5% over the APOR average prime offer rate |
|
|
|
Higher Price Mortgage Loan |
Loan that has an APR that exceeds the APOR by 1.5% on a 1st mortgage 2.5% on Jumbos and 3.5% on junior mortgages (2nd mortgage) |
|
|
|
RESPA |
Real Estate Settlement Procedures Act-Regulation X Regulate the mortgage industry, TILA does all industries |
|
|
|
CFPB has oversight over |
RESPA |
|
|
|
Purpose of RESPA |
Educate borrowers on costs associated with loan Eliminate kickbacks and referral fees Establish rules for escrow RESPA does not regulate rates |
|
|
|
Documents associated with RESPA: |
All borrowers who apply for a federally related mortgage must be given a written list of 10 HUD approved homeownership counseling organizations in their area within 3 business days of the application. |
|
|
|
Servicing/Transfer Disclosure Statement |
Whether or not the lender/broker taking the application intends to service the loan or sell or assign it to someone else. Given 3 days from the application |
|
|
|
Prohibited Kickbacks and Unearned Fees |
You can split 50/50 on an ad with a realtor but has to have equal space in the ad. No paying for referral fees No up charging on 3rd Party Service (Sharing In The Appraisal’s fee) is also a violation |
|
|
|
ABA |
Affiliated Business Arrangement exists when you are in a position to refer business or have a direct beneficial ownership of 1% or more in a provider or settlement services or you directly or indirectly influence the selection service provider. |
|
|
|
An Associate is defined as: |
Parent, Spouse, or Child in a position to refer business. An associate is also a corporation who controls 20% or more of the voting stock that would benefit the referrals. |
|
|
|
Who sets the rules for Escrow Accounts? |
RESPA |
|
|
|
Fannie Mae-FNMA |
The Federal National Mortgage Association was established in 1938 to make mortgages available to low income families |
|
|
|
What best describes an FHA loan? |
A loan that is insured by the federal government. |
|
|
|
What is a non conventional loan? |
A loan that is insured by the federal government. USDA & VA |
|
|
|
Which non conventional loan have a funding fee? |
USDA 1% VA 2.3% |
|
|
|
Under ECOA rules and regulations how many days does the borrower have to request a copy of an appraisal report if the application was denied? |
90 days |
|
|
|
Under ECOA rules and regulations how many days does the lender have to provide a copy of an appraisal report once requested by the borrower. |
30 days |
|
|
|
When are the funds disbursed for an owner occupied residential refinance? |
After the 3-Day rescission period |
|
|
|
An___ of title is a written statement by an attorney or title agent determining whether the property is encumbered or has clear and marketable title. |
Opinion |
|
|
|
The length of time that adverse credit collection info may appear in a credit report is regulated by: |
Regulation C HMDA Home Mortgage Disclosure Act |
|
|
|
Which department ensures that a states licensing requirements meet the SAFE Act’s federally mandated standards? |
The Federal Reserve Board |
|
|
|
All residential mortgage loan originators must be ___ according to the SAFE Act. |
Either state licensed or federally registered |
|
|
|
Lenders must provide a corrected CD if an event in connection with the settlement occurs during the __ day period after consummation that causes the CD to be inaccurate and result in a change to an amount paid by the borrower from what was previously disclosed. |
60 Calendar |
|
|
|
A borrower who applies for a subprime loan is most likely someone who: |
Experienced bankruptcy or foreclosure in the past |
|
|
|
Which of the following federal agencies is not represented on the council? |
Securities and Exchange Commission |
|
|
|
RESPA applies to which of the following? |
First lien residential loans for cooperatives, condominiums, and 1-4 family homes. |
|
|
|
The purpose of the ECOA, as implemented by __ is to prevent discrimination when granting credit. |
Regulation B |
|
|
|
The Homeowners Mortgage Disclosure Act HMDA is the federal law that requires lenders to: |
Collect data regarding race of applicant voluntarily given by the applicant at time of loan application. |
|
|
|
A lender may agree to a rate commitment with the borrower. This means that the borrower may lock in an interest rate and number of points. |
During the processing of the loan. |
|
|
|
If an applicant knowingly gives false information on the URLA: |
It is a federal crime The applicant can be fined The applicant can be imprisoned |
|
|
|
What is the first thing a veteran must do in order to apply for a VA guarantee loan? |
Apply for a certificate of eligibility |
|
|
|
If a manufactured home is not permanently attached to the land, financing is available through a: |
Personal Property Loan |
|
|
|
As measured by the Fair Isaac Corporation, which FICO credit score is considered subprime? |
610 |
|
|
|
When compared to a 25 year amortized loan, a 30 year amortized loan has: |
Lower monthly payments of principal and interest |
|
|
|
The financial privacy rule of the GLB Act requires financial institutions to give their customers privacy notices that explain the financial institutions: |
Information collection and sharing practices |
|
|
|
Amortization is the: |
Liquidation of a financial obligation on an installment basis |
|
|
|
What is an index? |
Published interest rate that is used as the basis upon which the note rate of an ARM will adjust. Typical indices are Treasury Bill Index, the 11th District Cost of Funds Index (COFI) and the Secured Overnight Financing Rate (SOFR) |
|
|
|
Which mortgage loan document contains the borrowers contractural promise to pay? |
Note or promissory note |
Neither a mortgage or a deed of trust contains a contractual promise to pay |
|
|
What is a chain of title on a property? |
A record of all transfers of ownership of a subject property. |
|
|
|
How is GNMA different than FNMA and FHLMC? |
GNMA is a government agency the others are not. GNMA insures FHA, VA, USDA, and HECM. FNMA and FHLMC purchase conventional mortgage loans. |
HECM Home Equity Conversion Mortgage |
