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25 Cards in this Set
- Front
- Back
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Which legislation does NOT allow a lender, when qualifying income, to consider the possibility of a borrower having additional children? ECOA, FCRA, RESPA, or TILA |
ECOA
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RESPA stands for?
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Real Estate Settlement Procedures Act
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Karen is refinancing her house. The length of the rescission period for this mortgage loan is?
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3 business days including Saturday, and excluding Sunday and holidays
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Jerry works for mortgage broker Sue. Jerry would need to be state licensed MLO if he: A. distributed the GFE Sue created to a borrower B. reviewed the borrower's application for completeness C. counseled a borrower about loan terms D. called a borrower to gather personal financial documents needed to validate an application |
C. counseled a borrower about loan terms |
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Each of these loans would be excluded under the definition of a higher priced loan EXCEPT: A. reverse mortgage B HELOC C initial construction loan D. purchase loan |
D. purchase loan
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TILA stands for?
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Truth in Lending Act
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Your applicant receives child support for her 7 year old son. Can you gross up the child support payments she receives?
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YES, gross up all net income if it is verified and likely to continue for three years.
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Which Act requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application? ECOA, RESPA, Community Reinvestment Act of 1977 or Federal Fair Housing Act? |
ECOA
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In January 2013, mortgage servicing rules were instituted by the CFPB to provide additional consumer protections related to : A. foreclosure B. protected classes C. antitrust D. kickbacks and referrals |
A. foreclosure |
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Adam secures a loan to buy a small office building that he intends to rent. Under the Truth in Lending Act, how long will he have to change his mind after he signs the note? A. 1 business day B. 30 days C. 3 business days D. 0 days; there is no right of rescission |
D. zero days (Reg Z does not require a rescission period for a commercial loan). |
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The SAFE Act mandates specific topics that must be covered as part of a state-licensed loan originator's continuing education every year. Which of these is a required topic? A. secondary markets B. appraisal C. FHA loans D.fair lending |
D. Fair lending
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What financial information is NOT required to be listed on the TILA disclosure statement? A. APR B. total finance charges C. amount financed D. name of the entity that will service the loan |
D. Name of entity servicing the loan
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For how many days must the settlement charges detailed in a GFE be available? A. 5 business days B. 3 business days C. 10 business days D.15 business days |
C. 10 business days
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A mortgage loan originator who supplies a revised Good Faith Estimate to a borrower must maintain the related documentation for at least: A. 1 year B. 3 years C. 180 days D. 5 years |
B. 3 years
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On the GFE, a permanent buydown of the interest rate by the borrower will show as a: A. charge to the lender B. charge to the borrower C. credit to the borrower D. credit to the lender |
B. Charge to the borrower
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Under which federal legislation does the consumer have the right to receive a copy of the appraisal report on a dwelling that is to be used as collateral for a loan? ECOA, TILA, RESPA, or HMDA |
ECOA
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REG X is also known as what law? FCRA, TILA, RESPA, or FHA |
RESPA
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How many business days after a mortgage loan application does a mortgage loan originator have to mail disclosures to the borrower? A. two B. one C. three D. four |
C. 3 days
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In order to fulfill RESPA requirements, the Good Faith Estimate (GFE) must be provided to the borrower within three business days of application. Which statement would NOT meet the standards set by RESPA? A. The GFE is received by the borrower within three business days. B. The GFE is given to the borrower at the time of application. C. The GFE is mailed to the borrower within three business days. D. If hand delivered to the borrower's residence, it can be delivered within five business days. |
D
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Assuming there has been no fraud or adverse action, a consumer is entitled to a free copy of his credit report A. every 6 months B. every year C. every two years D. every 18 months |
B. EVERY YEAR
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An appraiser may legitimately subtract value from a home valuation when the home being valued: A. is in a poor mixed race school district. B. is located in a particular ethnic neighborhood. C. has a bigger yard to maintain than comps of other recently sold homes. D. needs repairs. |
D.
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Which federal act created the CFPB (Consumer Financial Protection Bureau? A. Bank Secrecy Act/Anti-Money Laundering Act B. Gramm-Leach-Bliley Act C. Dodd-Frank Act D. Fair Credit Reporting Act |
C.
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Which cost would be included in the APR calculation on the TIL?
A. down payment B. pest inspection fee C. escrow deposit D. mortgage insurance |
D.
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What loan has a three business-day rescission period?
A. owner-occupied refinance B. commercial C. non-owner occupied residential D. vacant land |
A.
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What law defines a high cost loan, also known as a Section 32 loan?
A. Home Mortgage Disclosure Act B. Home Ownership and Equity Protection Act C. Mortgage Reform and Anti-Predatory Lending Act D Homeowners Protection Act |
B. HOEPA
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