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Stack #2528421
| Question | Answer |
|---|---|
| What law deals with credit, APR & advertising of consumer loans? | TILA/ Regulation Z- TILA the GODZILA |
| Which regulation prohibits kickbacks? | RESPA- Reg. X (Real Estate Settlement Procedures Act) |
| Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV? | HPA- Home Owners Protection Act |
| Which regulation prohibits fee splitting? | RESPA- Reg. X (Real Estate Settlement Procedures Act) |
| Regulation X is the letter used to describe which Law? | RESPA |
| RESPA is the acronym used to describe which Law? | Real Estate Settlement Procedures Act Reg. X |
| What type of mortgage requires a non-refundable funding fee? | VA Loan |
| What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan? | Acceleration Clause |
| What is the provision in a mortgage enabling a lender to demand full repayment if the borrower TRANSFERS the loan? | Alienation Clause |
| What does CFBP Stand for | Consumer Financial Protection Bureau |
| What two laws created the CFBP? | Dodd Frank Act and Consumer Finance Protection Act |
| Which regulation is designed to help meet the Credit Needs of the Communities in which it operates? | CRA-Community Reinvestment Act |
| Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report? | 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 |
| If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of the appraisal be provided to the borrower? | 3 business days |
| Conforming Loans follow the guidelines of which regulators? | Fannie Mae and Freddie Mac |
| Which regulations requires the lenders to "BE EQUAL" when extending credit to borrowers? | ECOA- Regulation B |
| How old must a borrower be to qualify for a Reverse Mortgage? | 62 years old |
| Which regulations as the primary function of preventing Identity Theft? | FACT Act (Fair and Accurate Credit Transactions Act of 2003- FACTA) |
| Which regulation has SECTION 114 Rules? | FACT Act (Fair and Accurate Credit Transactions Act of 2003- FACTA) |
| Which regulation requires the creditor to verify the VALIDITY of any change of address received? | SECTION 114 of the FACT Act |
| What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property? | TENURE Method |
| What is the fraud scheme where a borrowers uses someone else's name to purchase the property, but that person WILL NOT be living at the property? | Straw Borrower |
| What Government lender "insures" Mortgages? | FHA |
| What government lender "guarantees" mortgages? | VA Loans |
| What government lender loans money to fund purchases in rural areas? | USDA/Dept. of Agriculture |
| What is the value remaining in a property after all liens and debts have been paid? | Equity |
| A borrower is refinancing his home. How much time does Reg. Z give him to change his mind? | 3 days |
| Which Regulation established the 3-day right of recession rule? | TILA/REG Z Z- DAY RIGHT OF RECESSION |
| Redlining is part of which regulation/Law | Fair Housing Act |
| Blockbusting is part of which regulation/Law? | Fair Housing Act |
| Steering is part of which regulation/Law? | Fair Housing Act |
| Trying to convince a homeowner to SELL his home by implying that another race/ ethnicity is moving in the neighborhood is called? | Blockbusting/Panic selling |
| Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race or ethnicity is called? | STEERING |
| Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is called? | Redlining |
| What does HOEPA stand for? | Home Ownership and Equity Protection Act |
| HOEPA Loans are part of which larger regulation? | REG Z/TILA |
| High Cost Loans are part of which larger regulation? | REG Z/TILA |
| High Priced Loans are part of which larger regulation? | REG Z/TILA |
| Section 32 Loans are part of which larger regulation? | REG Z/TILA |
| Section 35 Loans are part of which larger regulation? | REG Z/TILA |
| MDIA ACT is part of which larger regulation? | REG Z/TILA |
| Mortgage Disclosure Improvement Act is part of which larger regulation? | REGZ/TILA |
| What is another name for Annual Percentage Rate? | Effective Rate |
| What is another name for Interest Rate? | Note Rate or Nominal Rate |
| PITI divided by Gross Monthly income is referred to as what? | Housing Ratio or Front-End DTI |
| PITI + monthly debt divided by Gross Monthly income is referred to as what? | Total Obligation Ration- Back- end Ratio |
| How long must TILA Disclosures be kept? | 2 years |
| What is the maximum amount of time that NEGATIVE info can be kept on a credit report? | 7 years |
| What is the maximum amount of time that a bankruptcy can remain on a credit report? | 10 years |
| Which law/regulations states that a Bankruptcy can only remain on your credit for a MAX of 10 years? | FCRA - Fair Credit Reporting Act - Reg V |
| Which law/regulations states that negative information can only remain on your credit for a MAX of 7 years? | FCRA- Fair Credit Reporting Act - Reg V |
| Which law allows a consumer who has had her credit card used by an identity thief to place a credit freeze on her credit report? | FACT ACT |
| Which law requires creditors to TRUNCATE debit and credit card info on receipts? | FACT ACT |
| Which regulations states that loan officers secure and dispose of borrower's sensitive credit information? | FACT ACT |
| Which regulation states that if a borrower is denied credit, he can receive a FREE copy of his credit report? | FCRA - Fair Credit Reporting Act - Reg V |
| Which regulation states that is a borrower is on SSI or Disability, he can receive a FREE copy of his credit report? | FCRA - Fair Credit Reporting Act - Reg V |
| Which regulation states that if a borrower is unemployed, he can receive a FREE copy of his credit report? | FCRA - Fair Credit Reporting Act - Reg V |
| Which regulation states that if a borrower has been a victim of fraud, he can receive a FREE copy of his credit report? | FCRA - Fair Credit Reporting Act - Reg V |
| Which regulation states that a borrower can receive a FREE copy of his report once a year? | FACT ACT |
| During the loan process, if you ask a borrower, is he single... What law are you violating? | ECOA - Regulation B |
| Which regulation states that the only correct way to ask about a borrower's marital status is: are you married, unmarried or separated? | ECOA- Regulation B |
| Who is responsible for providing the closing disclosure to the borrower? | The Creditor/Lender |
| Who is responsible for providing the closing disclosure to the Seller? | Settlement Agent/Title Agent |
| Which regulation requires the borrower to receive the Loan Estimate? | TILA - REG Z |
| Which regulation requires the borrower to receive the Closing Disclosure? | TILA - REG Z |
| Which regulation requires the borrower to receive the Loan Estimate within 3 business days? | RESPA - Regulation X |
| Which regulation requires the borrower to receive the Closing Disclosure within 3 business days? | RESPA - Regulation X |
| As it relates to the initial loan estimate - -what is the definition of a Business day? | Any day that the Creditor's office is open for business |
| According to TILA/REG Z - what is the definition of a Business day? | Any calendar day except for Sunday and Legal Holiday |
| During the loan process, where do you find HMDA government monitoring information? | Section X (10) of the 1003 application |
| What does HMDA stand for? | Home Mortgage Disclosure Act |
| What appraisal approach is used when appraising property that has been destroyed by a natural disaster? | Cost approach or replacement cost approach |
| In the sales comparison approach, how many comps are required? | 3 |
| What is another name for the Financial Services Modernization Act of 1999? | Graham Leach Bliley Act |
| How many days does a CREDITOR have to notify a consumer of the status of a credit application? | 30 days |
| Which regulation states that a creditor has 30 days to notify a consumer of an application approval or denial? | ECOA - REG B |
| How many hours of Ethics is required to be taught in the 20hr Prelicsening course? | 3 |
| How many hours of Ethics is required to be taught in the 8hr Continuing Education course? | 2 |
| How many hours of Federal Law is required to be taught in the 20hr Pre-licensing course? | 3 |
| How many hours of Federal Law id required to be taught in the 8hr Continuing Education course? | 3 |
| A mortgage that includes more than one parcel of land is called what? | Wraparound mortgage |
| A Mortgage that includes appliances such as a stove or refrigerator is called what? | Package Mortgage |
| Which closing document itemizes the final closing cost and items paid in connection with the loan for the borrower? | Closing Disclosure |
| Which law deals with APR and Advertising of credit terms? | TILA - REG Z |
| What is the official name for 3/7/3 rule? | Mortgage Disclosure Improvement Act |
| What regulations require the lender to perform an escrow analysis? | RESPA - REG X |
| Which law states that it is a violation to discriminate against a potential borrower on public assistance? | ECOA- REG |
| What two classes are protected under Fair Housing Act- but NOT under ECOA? | Disability/Handicap & Familial Status |
| What three classes are protected under ECOA but not under Fair Housing? | Age, Marital Status, and Public Assistance |
| What is another name for non-conforming loan? | Jumbo Loan |
| What is another name for a Jumbo Loan? | Non Conforming Loan |
| The front Ratio for an FHA loan is 31%... what is the back ratio? | 43% |
| The front Ratio for a Conventional loan is 28%... what is the back ratio? | 36% |
| The Ratio for a VA loan is? | 41% |
| What is another name for the Bank Secrecy Act? | The anti-money laundering act |
| What is another name for the Anti-Money Laundering Act? | Bank Secrecy Act |
| Which law requires banks to keep records of deposits of $10,000 made in cash? | Anti-Money Laundering Act/Bank Secrecy Act |
| What is the passing score for the NMLS Exam? | 75% or higher |
| If you fail the test, how long must you wait before retaking the exam? | Required 30-day waiting period before retaking a failed test |
| What does AUS stand for? | Automated Underwriting System |
| What does SAFE Act stand for? | Secure & Fair Enforcement Act |
| What does HERA stand for? | Housing & Economic Recovery Act |
| What does HPA stand for? | Homeowner's Protection Act |
| What does GLBA stand for? | Graham Leach Bliley Act |
| What type of property I covered under RESPA? | 1 - 4 unit Residential Property |
| Which regulation allows lenders to OBTAIN information regarding a borrower's ethnicity, to help identify possible discriminatory patterns? | HMDA- Regulation C |
| When can a borrower request cancellation of PMI? | When LTV Reaches 80% |
| When must the lender automatically cancel PMI? | When the LTV reaches 78% |
| What is the Primary Market? | Where borrowers/consumers obtain mortgage loans. |
| What is the secondary market? | Where lenders buy and sell loans from one another |
| Name the two Government Sponsored Entity (GSEs)? | Fannie Mae and Freddie Mac |
| Which GSE is the Federal National Mortgage Association? | Fannie Mae |
| Which GSE is the Government National Mortgage Association? | Ginnie Mae |
| Which GSE is the Federal Home Loan Mortgage Association? | Freddie Mac |
| Which AUS system does Fannie Mae use? | Desktop Underwtiter (DU) |
| Which AUS system does Freddie Mac use? | Loan Prospector (LP) |
| How often must the National DNC list ne updated? | Every 90 days |
| How often must a lenders internal DNC list be updated? | Every 30 days |
| What is the penalty for violating the DNC list? | $16,000.00 |
| Which regulation allows the borrower to sue for 3x's the amount paid for title insurance? | RESPA Section 9 |
| If money was collected, and a borrower rescinds, how long does escrow have to return the funds? | 20 days |
| What is the only way to ask about marital status, according to what law? | Are you married, unmarried or sererated acoording to Are you married, unmarried or separated according to Regulation B (ECOA) Regulation B (ECOA) |
| How long does a creditor have to make a decision on a credit application? | 30 days |
| According to what regulation does a lender have 30 days to make a decision on a credit application? | ECOA - REG B |
| What law requires that the equal housing lender slogan and / or logo be placed on all advertising? | Fair Housing Act |
| How long does a person have to sue for a violation under the Fair Housing Act? | 1 year |
| Which law says that that the lender cannot inquire about a person's sexual orientation or gender identity? | HUD Equal Access Rule |
| What is the site where you can receive a free copy of your credit report, according to the FACT Act? | www.Annualcreditreport.com |
| Which regulations requires you to shred or burn sensitive credit information when no longer needed? | FACT ACT |
| What regulation is designed to protect consumer's non-public information and how it can and cannot be shared? | GLBA |
| Which law requires lenders to verify the date of birth, SS# and ethnicity of a person getting a loan in the United States? | U.S. Patriot Act |
| If you fail the test 3 times, what is the waiting period to retest? | Three (3) Months/ 180 days |
| Under HMDA, how long must a lender keep the Loan Application Register (LAR)? | 3 years |
| What day does your license expire each year? | December 31st |
| What is the renewal period to keep your license current? | NOV 1 - DEC 31st |
| Which Act includes provisions to protect consumers' personal financial information held by financial institutions? | Gramm - Leach - Bliley |
| Which Act requires companies to give consumers privacy notices? | Gramm - Leach - Bliley |
| Which act was implemented to promote financial stability and to protect consumers from abusive practices? | Dodd Frank Act |
| What is RESPA Section 6 responsible for? | Mortgage Servicing |
| What is RESPA Section 8 responsible for? | Kickbacks, Fee Splitting & Unearned fees |
| What is RESPA Section 9 responsible for? | Title Insurance |
| What is RESPA Section 10 responsible for? | Escrow Accounts |
| What is the max mortgage term (length) allowed for a mortgage to be classified as a Qualified Mortgage? | 30 years |
| Until the loan estimate has been delivered, wht fee can a MLO charge? | Credit Report |
| Estimate of charges and terms for settlement services must be available for at least ______ business days from the time the Loan Estimate is provided? | 10 days |
| If a new Loan Estimate is required because of a changed circumstance, it must be disclosed and received by the borrower ____ days prior to consummation of the loan? | Four (4) |
| How long are Closing Disclosures kept by the Creditor? | 5 years |
| TILA applies to transactions that are payable by (# of installments)? | More than 4 |
| What does ECOA ECOA stand for? | Equal Credit Opportunity Act |
| The loan estimate must be retained for how long? | 3 years |
| What does HMDA stand for? | Home Mortgage Disclosure Act |
| What does NOV stand for? | Notice of Value |
| What does CRV stand for? | Certificate of REASONABLE Value |
| What does the "R" stand for in the acronym NMLSR | REGISTERY |
| What is a Mortgage Call Report (MCR)/? | Quarterly Report required by MLO Company and Mortgage Brokers |
| Loan originator organizations must keep compensation records for how many years? | 3 years |
| Mortgage companies must submit a residential loan origination activity report to the NMLSR every: | Three months |
| What is the process in which a broker originates and closes a loan in his /her own name, then transfers the loan to a lender at closing? | Table Funding |
| What law protects homeowners from foreclosure-prevention scams? | Mortgage Assistance Relief Services rule |
| Individuals must file a report when they transport how much cash out of the country? | $10,000.00 or more |
| Which law requires businesses to print only the last five card numbers on a credit card receipt? | FACT Act |
| What happens is the acceptable variance between the Loan Estimate and the Closing Disclosure is exceed? | The excess is refunded to the borrower within 60 days. |
| A higher-priced home loan is one that has: | APR exceeds the average prime rate by at least 1.5% for first-lien loans. |
| What is the shortest time in which a mortgage purchase loan can close? | 7 business days. |
| What type of mortgage is non-recourse loan? | Reverse Mortgage |
| A lender that offers mortgage loans directly to the public is a: | Retail lender |
| What type of loan is short-term with money advanced in stages? | Construction |
| The law requires ARM borrowers to receive the Consumer Handbook on Adjustable Rate Mortgages? | TILA |
| Which law requires that the "Know Before You Owe" booklet be given to the borrower? | RESPA |
| Lenders must maintain an escrow account for higher-priced (Section 35) mortgages for a minimum of: | 5 years |
| What is the Fannie Mae appraisal report form? | URAR - 1004 Form |
| What lien has the highest priority and is paid off first when a property is sold? | Property Tax |
| What document is assigned along with the mortgage? | Promissory note |
| What term describes the process of a senior mortgage lien-holder voluntarily changing into a junior mortgage lien holder? | Subordination |
| What does Ginnie Mae do? | Guarantees Ginnie-Mae mortgage-backed securities |
| Which law requires lenders to train employees to recognize the Red Flags of identity theft? | FACT Act |
| Which Law entitles a borrower to a copy of his appraisal report? | ECOA |
| What type of funding occurs when a lender borrowers money from an investor and assigns the mortgage and note to the investor immediately after closing? | Table |
| The lowest possible interest rate for an ARM loan is known as the: | Floor |
| If an applicant works 40 hours every week and is paid $13.52 per hour, what is the applicant's monthly income? | $2,343.47 |
| What law prohibits discrimination in the sale & lease of property? | Fair Housing Act |
| The term "20 basis points" expressed as a percentage is: | 0.20% |
| A late fee for a conventional loan is: | 5% of principal and interest |
| A funding fee is required for a: | VA Loan |
| The mortgagee is the: | Lender |
| Who does Fannie Mae hold responsible for the quality of an appraisal? | Lender |
| Which law prohibits discrimination by lenders when extending credit? | Equal Credit Opportunity Act |
| A property sold for $200,000 and was appraised at $180,000. The borrower received a loan for $150,000. What is the loan-to-value? | 83.3% |
| How many days does a lender have to send an adverse action notice? | 30 |
| The enforcement of a lien is known as a: | Foreclosure |
| What minimum percentage of ownership qualifies an individual as self-employed? | 25% |
| Which law defines the right of recession? | Truth-in-Lending |
| How long after the application date must social security payments continue to be received in order to count as income? | 3 years |
| Which clause in a mortgage allows a lender to increase the interest rate? | Escalation |
| A VA appraisal is known as a | CRV or NOV |
| Which types of loans are meant for rural areas? | USDA - Section 502 |
| The purchase price of a home is $200,000 and the loan amount is $180,000. The borrower pays 6% interest with 1 discount point and 1 origination point. What is the cost of the points? | $3600 |
| What is the maximum allowable amount of VA seller concessions? | 4% |
| The late fee for a VA loan is: | 4% of principal and interest |
| What is the clause in a mortgage that is also known as a "due on sale" clause? | Alienation |
| Alimony payments must continue to be received for how long after the application date if they are to be included as income? | 3 years |
| Credit reports are good for how many days after they are pulled for qualifying purposes? | 120 |
| Which law protects an individual's confidential information? | Gramm-Leach-Bliley Act |
| The Mortgage Servicing Disclosure Statement must be sent to the borrower within how many business days of receiving a loan application? | 3 |
| After an escrow account analysis, money must be refunded if the over-paid amount equals or exceeds: | $50.00 |
| The Maximum escrow cushion that a lender can require is: | Equal to 2 months (1/6th) |
| HOEPA considers a loan to be high cost if the total charges to the borrower exceed what percentage of the loan amount? | 5% |
| The Home Mortgage Disclosure Act (HMDA) was implemented by the : | Federal Reserve Board |
| Tax Liens can be kept in the credit report for: | 7 years |
| The Red Flags Rule is concerned with: | Identity theft |
| For how many years must a lender retain the Loan Estimate? | 3 |
| For how many years must a lender retain the Closing Disclosure? | 5 |
| For how many years must a lender retain the Escrow Cancelation Notice? | 2 |
| For how many years must a lender retain the Partial Payment Policy? | 2 |
| The mortgagor is the: | Borrower |
| Which law (regulations) is designed to create financial stability? | The Dodd Frank Act |
| Mortgages are a(n) | Voluntary Lien |
| What establishes the lien position? | Date and time of recording |
| What type of mortgage has a fixed interest rate and increasing payments? | Growing equity mortgage |
| A graduated payment mortgage: | Has payments that start low and increase over time |
| If there is no minimum monthly credit card payment, what percentage of the balance is used in the calculation of monthly debt? | 5% |
| The Fannie Mae Total Obligations Ratio is: | 36% |
| A guarantor or co-ginger signs the: | Note |
| Company or individual who, for a fee, places loans with lenders, but does not service such loans is called a ? | Broker |
| Fannie Mae generally wants how many months of liquid financial reserves after closing? | 2 months |
| A co-borrower whose income is used to qualify must sign the: | Mortgage and the note |
| Which form is used to summarize the information in the loan package on a FHA loan? | Fannie Mae 1008 - Transmittal Summary |
| An appraisal must be re-certified if it is older than: | 4 months |
| The most probable price which a property should bring in an open market is: | Market value |
| The appraisal approach that best applies to vacant land is: | Cost Approach |
| The appraisal approach that best applies to a school is: | Cost Approach |
| Who handles complaints regarding mortgage loan rejections? | CFPB |
| What gives someone other than the owner the right to be on the property for a specific purpose? | Easement |
| What is a clause in the deed that limits the future use of a property? | Deed restriction |
| The most common type of legal description for residential subdivisions is: | Lot and Block |
| The most accurate type of legal description for residential subdivisions is: | Metes and bounds |
| What type of funding occurs when a lender obtains funds from a line of credit at a commercial bank? | Warehouse funding |
| The late fee for FHA and VA loans is: | 4% |
| When a lender sells a mortgage loan to another lender this is called: | Assignment of mortgage |
| What type of mortgage fraud scam occurs when a buyer borrows he down payment from a seller without the lender's knowledge? | Silent second |
| What can result in a $1,000,000 fine and 30 years in prison? | Acts of mortgage fraud |
| After loan servicing is transferred, the new servicer cannot assess late fees for a period of ___ if the payment is made to the previous lender by mistake | 60 days |
| Which document is used in place of a mortgage to secure the payment of a promissory note? This method is used in many states. | A deed of trust |
| APR means | Annual percentage rate. This is the cost of credit expressed as a percentage. |
| A Reconveyance Clause is: | The method used to transfer title for a property following full payment of a loan. Reconveyance is typically used with deed of trust. |
| A Subordinate lien is: | The same as a second mortgage. It may also be called a junior lien. |
| What is a mortgage? | A legal document that connects a promissory note with the collateral used to secure the note. |
| A deed is: | A legal instrument that conveys title to real property. |
| An amortization schedule is: | A table providing the periodic payments needed to pay off a loan by the end of its term. The payments include principal and interest. |
| Qualified mortgages may not have Back=end DTI exceeding: | 43% |
| What is a note? | A legal document that obligates a borrower to repay a loan. It specifies the terms by which the repayment will occur. It may also be called a promissory note. |
| VA underwriters use a debt ratio of: | 41% |
| Discount points are paid to? | The lender at closing to reduce the note rate of the loan |
| Securitization is used to? | Pool similar types of loans to create mortgage-backed securities for sale on the financial market. These securities are used to create a renewable source of funds for lenders. |
| When does "Dry Settlement" occur? | Parties meet to execute documents, but funds are not disbursed. |
| When does "Wet Settlement" occur? | Parties meet to execute documents and funds are subsequently disbursed |
| Name four (4) involuntary liens that could be filed on a property. | Tax liens, Mechanics liens, Judgements, Attachments |
| What type of lien is a voluntary lien on property? | A Mortgage is a voluntary lien |
| What is the defining definition of "Real Property"? | Land and anything that is permanently affixed to it. |
| If the purchase price is $100,000 and the loan amount is $80,000... what is the LTV | 80% ($80,000 / 100,000) |
| If the purchase price is $300,000 and the loan amount is 2 $250,000 and the appraisal value is $275,000... what is the LTV? | 90% (250,000 / 275,000) |
| Suppose the payment is late on a conventional loan and the monthly principal is $1000, the monthly interest is $500, the monthly taxes are $125 and the monthly insurance is $25.0... what is the amount of the late payment? | $75.00 late fee |
Created by:
tucker67