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25 Cards in this Set
- Front
- Back
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The restrictions regarding the Good faith estimate require interest rates to be available for how long?
A. 3 days B. Ten days C. Twenty day D. No days |
D. No days - interest rates will not hold unless you lock in a rate |
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Six factors that constitute an application are:
A. Name, add., property value, ss#, loan amount, loan type B. Name, ss#, age, marital stAtus, eye color C. Name, address, social security number, income, estimated property value, loan amount D. There are only two things: name, ss# |
C. Name, address, social security number, income, estimated property value, loan amount
--if any one of these are missing, a good faith is not due and application is not valid |
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If an individual feels like they have been a victim of illegal discrimination in housing who do they contact?
A. FHA B. HUD C. CFPB D. FNMA |
C. CFPB
--the CFPB has been taking complaints from consumers about mortgage transactions since 2011. They have a department dedicated to address fair lending matters |
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Amendments to HOEPA that took effect in January 2014 created which if the following thresholds for the purpose of identifying high-cost mortgage loan transactions? A. Points and fees threshold B. APR threshold C. Prepayment penalty threshold D. LO compensation threshold |
C. Prepayment penalty threshold
***in 2014 CFPB Amended the points and fees threshold and the apt threshold but also created the prepayment penalty threshold |
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Which of the following is not true with regard to TIlA disclosures?
A. Disclosure rules differ if open ended credit or close ended B. Rules for disclosures are the same whether credit is open ended or close ended C. Everyone with ownership interest receives rescission notice D. Special disclosures are required for ARM |
B. Rules for disclosures are the same whether credit is open ended or close ended
*rules differ under TILA for disclosures on open ended and close ended credit |
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Which of the following services would not be covered by RESPA?
A. Services of a real estate agent B. Processing services C. Office supply provider D. Title abstract
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C. Office supply provider
Office supped is by generally covered by RESPA...no rules apply |
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What was the first act created to specifically to combat predatory lending?
A. TILA B. Fair housing act C. HOEPA D. RESPA
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C. HOEPA
**the home ownership and equity protection act was enacted in 1994 and was the first legislation specifically created to combat predatory lending |
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What federal legislation requires the credit union to research and verify the validity of a change of address form?
A. Truth in lending B. Fair Housing Act C. GLB safeguards rule D. FTC red flag rule |
D. FTC red flag rule
**Red flag rule requires the credit union to follow up with the consumer and be sure they have not had their identify stolen. |
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The types of high priced mortgages that might be subjected to HOEPA include all but:
A. Refinances B. Home equity line of credit C. Loans to purchase a home D. Reverse mortgages |
D. Reverse mortgages
**the Dodd-frank act broadened the scope of HOEPA to cover almost all mortgage types except for reverseortgsges |
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FTC Red flag rule came from the Fair and Accurate Credit Transaction ACT (FACTA) |
It requires the creation of identity theft programs and detect patterns know as red flags to detect identity theft |
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Rules for telemarketers under the telemarketing sales rule
-Transmitting a telephone number that can be read by the consumer caller id -cannot make misleading statements -cannot call before 8am and after 9pm -cannot threaten to arrest borrowers for not paying bills -must update no call list every 31 days |
RESPA requires the sending of 1. the GFE, 2. settlement Cost Handbook, 3. mortgage servicing disclosure statement within 3 business days of receiving the 1003 or application |
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When is a company required to take action under ECOAs Regulation B? |
When it is "more likely than not" that a violation has occurred
Reg. B requires companies to self audit and take corrective action |
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Under HOEPA you must not make a loan based solely on collateral property value (t/f) |
True! You must consider ATR or ability to repay |
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Under HUD to operate as a joint venture affiliated business and not be considered a SHAM you must
A. Provide documentation stating the affiliation B. Have an employee in a separate office C. You must compete for other business and incur the risks and rewards of a similar business |
C. Must compete for business and incur the risks and rewards as other businesses |
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An LO increasing the income on a buyers app to get the app approved is an example of what? |
Fraud for housing |
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ECOA identifies 3 categories for marital status what are they? |
Married, separated, unmarried |
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What is the punishment for giving a lender fraudulent information to get an app approved? |
Up to 30 years in jail, up to 1 million, or both |
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Which document is used for re-gi settlement costs? |
HUD1-A |
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What is prohibited basis? |
Taking an adverse action on an app for race, national origin, marital status, sex, age, etc. |
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Under ECOA - When is it legal to discriminate in the app process? |
It is never legal to discriminate
**if under age, they may not enter into a contract and could end in denial but it is not discrimination |
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If an advertisement lists "minimum payments as low as...." What else do they need to do? |
List that "A BALLOON PAYMENT MAY RESULT" |
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Under HPA (homeowner protection act) it is illegal to accept payment for PMI after it has been cancelled(t/f) |
True, if payment is sent it must be returned within 45 days |
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What are the goals of HERA? (Housing and Recovery Act) |
Strengthens regulations of GSEs Providing more provisions for FHA Establishing a nationwide licensing data base and education standards
Not addressing YSP |
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FACTA and FTC Red Flags Rule requires a loan originator to us Reasonable Methods to dispose of consumer information. |
Disclosure for high risk loans required by HPA inform the borrower that termination of PMI is automatic at the midpoint of the authorization schedule as long as a borrower is current on his/her payments |
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You can only resend on the primary residence of a refi under TILA |
CRAs, furnishers of info to CRAs, and user consumer reports are all subject to FCRA and reg V |
