Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
NMLS
pink
| Question | Answer |
|---|---|
| WHEN MUST A REVISED CLOSING DISCLOSURE BE ISSUED WHEN IS A NEW 3 DAY PERIOD REQUIRED | when changes that occur result in different amnts being charged than what's on disclosure ^apr more than 0.125% change in loan product addition of prepayment penalty |
| ON THE LAR WHAT INFO MUST BE PROVIDED (10) | loan type, loan purpose, loan amount, property location, borrow ethnicity-sex-gross income, occupancy, action taken on loan app, rate spread |
| RED FLAGS INCLUDE | alerts, notification & warning from credit reporting , suspicious docs, suspicious id info, suspicious act act , notice from other sources ex: victim of ID theft customer law enforcement |
| WHEN CANT A REVISE LOAN ESTIMATE BE GIVEN- AT THAT POINT WHAT MUST BE USED WHEN IS THE LATEST A REVISED LOAN EST CAN BE GIVEN | after delivery of closing disclosure- revised closing disclosure 4 bus-day prior to closing |
| WHAT IS DATA PROVIDED IN THE LAR USED FOR | used by federal state regulators to monitor creditors for risk + warning signs of discrimination |
| WHAT IS THE E-SIGN ACT WHAT MUST BE OBTAINED TO COMPLY | contract or signature is considered valid even electronic consumers consent and disclosure etc |
| WHAT MUST BE FILED WHENEVER THERE IS A CASH TRANSACTION OF 10K OR ^ | Currency Transaction Report |
| WHAT IS SARS | Suspicious Activity Report that must be filed w/ treasury department whenever a person engages in suspicious aggregate transactions of 5k^ |
| WHAT DISCLOSURE DOES RESPA REQUIRE (5) | good faith estimate servicing disclosure statement affiliated business arrangements hud-1 settlement statement escrow account operation and disclosures |
| WHEN DOES TILA NOT APPLY | commercials loans or business loans |
| PERMISISBLE MLO COMPENSATIONS | salary, commission based on dollar volume or # of loans, participation in a tax adv. |
| WHAT IS NEEDED IF APP IS DENIED OF COUNTER OFFER | written notification called adverse action notice |
| WHAT IS UNIFORM SETTTLEMENT STATEMENT (HUD1 SETTLEMENT) WHEN MUST IT BE AVAILABLE FOR REVIEW | a complete list of actual settlement cost that will be charged at closing one bus-day prior to settlement if request by brrwr |
| RESPA PROHIBITS (3) | -kickbacks -property seller to require buyer to us a particular title insurance company -fee splitting |
| WHEN IS A FACT "MATERIAL" | if knowledge of the truth would be lead reasonable consumers to consider an alternative option to accomplish their goals |
| WHEN MORTGAGE BROKERS + ORIGINATORS WERE ABLE TO INCREASE THEIR COMPENSATION BY GIVING BRWR HIGHER INTEREST RATE THAN WHICH THEY QUALIFIED FOR IS CALLED | YIELD SPREAD PREMIUM (YSP) |
| WHEN ARE LENDERS REQUIRED TO PROVIDE BRWR W/A SUMMARY OF THE ACCOUNT WHAT IS THIS REFFRED TO AS | AT CLOSING AND ONCE A YEAR NOTICE OF ESCROW ANALYSIS |
| HOW LONG ARE MOST ADVERSE ITEMS ON A CREDIT REPORT IF INFO ON CREDIT IS INCORRECT HOW LONG DOES CREDITORS HAVE TO REMOVE IT | 7 YEARS (10 BNKRPTCY) forever if unpaid federal tax liens 30 days of receipt of dispute |
| ____ occurs WHEN AN ORIGINATOR DIRECTS A BORROWER TO GIVEN A LOAN PRODUCT TO INCREASE COMPENSATION | STEERING |
| WHAT RESTRICTIONS OCCUR IF HIGHER PRICE MORTGAGE LOAN (3) | must escrow for min of 5 years no prepayment penalty if ARMs loan for first 4 years must verify brwr ability to repay ( look at income assets credit +dti) |
| WHEN IS A MORTGAGE CONSIDERED HIGHER PRICE | compare APR to APOR if APR exceeds APOR |
| WHAT IS HPA WHICH LOANS DONT APPLY WITH HPA | Homeowners Protection Act don't apply to government loans |
| WHAT ARE PERMISSIBLE PURPOSES FOR PULLING A CONSUMERS CREDIT REPORT (5) | making decision on a credit transaction employment reasons insurance underwriting subpoena/ to enforce financial responsibility laws reaction to legitimate business needs |
| WHAT ARE MLOs PROHIBITED FROM BEING COMPENSATED ON (3) | can't reduce compensation to help brwr terms/condition of a loan interest rate on loan sales of services from an affiliated business |
| WHO IS RESPONSIBLE FOR ENFORCING DO NOT CALL registry | FTC Federal Trade Commission |
| HOW LONG MUST THE CREDITOR KEEP CLOSING DISCLOSURE DOCS | 5 YEARS |
| WHO IS RESPONSIBLE FOR DELIVERY OF THE LE | THE CREDITOR |
| WHAT IS APR DESCRIBE | Annual Percentage Rate estimated total cost of credit over life of loan |
| FINE FOR DNC | 16K PER CALL |
| CREDITOR CAN NOT CHARGE ANY FEES UNTIL OTHER THAN | brwr has orally (face to face)/ written or had a phone convo to indicate an intent to proceed fee for obtaining credit report |
| GFE & HUD-1 HAVE BEEN REPLACED BY | LOAN ESTIMATE & CLOSING DISCLOSURE |
| WHAT IS GLBA | GRAMM-LEACH-BLILEY ACT |
| WHATS PROVISONS FOR GLBA (3) | FINANCIAL PRIVACY RULES SAFE GUARD RULES PRETEXTING RULES |
| HOW MANY DAYS AFTER THE LE IS GIVEN CAN THE TRANSACTION BE CONSUMMATED | 7 DAY |
| WHAT'S THE PURPOSE OF RESPA | allows brwers to receive pertinent & timley disclosures regarding nature and cost of real estate settlement process |
| WHAT ARE THE REQUIREMENTS FOR QM (6) | no negative amortizations no ballon payments income + financial resources must be veified and documented max 30 yr loan max 3 % of loan amount max back-end ratio of 43% |
| per TILA & HOEPA WHAT DISCLOSURE / LIMITATIONS APPLY WITH HIGH INTEREST RATES LOAN FEES WHAT LOANS DO THESE REGULATIONS APPLY TO (5) | no ballon payments no negative amoritization no prepayment penalty no refi within 1 yr SECTION 32 LOANS HIGH COST MORTGAGE LOANS |
| REG C IS ENFORCED BY IMPLEMENTS | CFPB consumer financial protection bureau Fed regulation that implements HMDA |
| WHAT DISCLOSURES ARE UNDER TILA REG Z (7) | charm booklet advertising + trigger terms trans of ownership disclosure right of recession loan originators compensation high priced mortgage loan home ownership & equity protection act |
| IF THE TOLERANCE IS EXCEEDED ON LOAN ESTIMATE HOW LONG DO YOU HVE TO ISSUE REFUND TO BRRWR | 60 DAYS AFTER CONSUMMATION |
| WHAT IS TITLE INSURANCE | a type of insurance that protects against defects not listed on title report |
| WHO CREATED THE CFPB | THE DODD-FRANK ACT consumer financial protection bureau tasked w rule making and enforcement for majority of federal mortgage laws |
| WHAT IS LOAN SERVICING DISCLOSURE SERVICING REFERS TO? | provides notice regarding lenders practices of transferring or retaining the servicing of the loan the process of collecting principal interest escrow payments on loan sending required notices & handling inquires |
| WHAT ARE TREBLE DAMAGES WHAT'S THE FINE | when property seller requires buyer to use a particular title insurance company liable for 3x cost of the title services |
| WHEN MUST MORTGAGE ISNURANCE ON BRWRS PRIMARY RESIDENCE BE CANCELLED | when LTV is 78% or less brwr may request to cancel at 80% LTV |
| HOW LONG DOES BRWR HVE TO RESCIND | 3 BUS-DAY from consummation |
| WHAT IS THE RIGHT TO RESCISSION | brwers have to right to cancel certain credit transactions & entitled to a full refund of any funds to anyone connected with transactions |
| LOAN ESTIMATE + CLOSING DISCLOSURE ARE REG? | REG Z |
| WHAT IS A COMPLETE APPLICATION | anvils address, name, value, income, loan amount, social security |
| WHAT IS HMDA WHAT WAS IT IN RESPONSE TO | Home Mortgage Disclosure Act redlining |
| WHAT IS REDLINING | the arbitrary denial of real estate loan apps in certain geographic areas w/o considering individual applicant qualification |
| WHAT IS MONEY LAUNDERING | involves bringing illegal obtained funds in and out of the financial system in a manner that evades law enforcement |
| WHAT IS TOLERANCE | the amount a particular charge can exceed the amount listed on the loan estimate |
| HOW LONG DO YOU HAVE TO KEEP COPIES OF ALL ADVERTISMENT | 2 yrs |
| WHAT DOCS ARE NEEDD WHEN DEALING WITH AN ARM (2) | ARM DISCLOSURE CHARM BOOKLET |
| WHAT ARE TRIGGER TERMS | certain terms that when they are used require a number of other terms must be disclosed as well |
| WHAT IS FinCen WHAT DO THEY DO | Financial Crime Enforcement Network they are federal agency in charge of monitoring BSA compalicne |
| WHAT FEDERAL REG IMPLEMENTS ECOA Who regulates? | REG B regulated by CFPB |
| HOW LONG DOES A FINANCIAL INST HAVE TO FILE A SARs report | 30 days if identifiable 60 days if can't be id |
| HOW LONG MUST A CREDITOR KEEP THE RECORDS OF THE LE AFTER CLOSING | 3 years |
| WHICH RECORDS ARE EXEMPT FROM E-SIGN (5) | notice of default acceleration reposseions foreclosure eviction |
| WHEN IS AFFLIATED BIZ ARRGEMENT DISCLOSURE DUE TO BRWR | no later than the time the referral to off biz is made |
| WHEN IS SERVICING TRANS DISCLOSURE DUE TO BRWR | no later than 15 days before services are transferred |
| WHATS REQUIRED W/ FINANCIAL PRIVACY RULE | GLBA requires customers get a privacy policy at 3 distinct times explaining that inst collection and sharing practices 3 times > consumer to customer, annually 4 customers, policy changes for consumers opt out right (limits sharing info w/ 3rd party) |
| WHAT ARE PRETEXTING PROVISIONS | GLBA prohibits the use of false pretenses including fraudulent statements and impersonation (pretexting) to obtain consumers person financial info (ex such as bank balances) |
| IF CHANGE IN CLOSIING DISCL OCCUR WITHIN 30 DAYS AFTER CONSUMMATION HOW LONG TO DELIVER REVISED DISCLOSURE | 30 DAYS unless clerical error then 60 days (ex wrong 3rd party servicer) |
| WHAT IS REQUIRED TO STATISFY SAFE HARBOR PROVISONS | LO must present loan options for each type of loan brwr express interest options presented must include > lowest interest rate, lowest cost in pts fees, no risky features (neg amortizations, prepayment penalty) consumer will qualify |
| WHAT ARE THE 2 KINDS OF LOANS WHAT BRANCHES OFF THEM | GOVERMENT>FHA>VA>USDA rural developments CONVENTIONAL LOANS>conforming>non conforming |
| WHAT IS THE LOAN ORIGINATOR COMPENSATION RULE WHO ENFORCES IT | prohibits MLO compensation based on terms of the loan REG Z |
| WHAT IS QM VS QRM | qualified mortgage ability to repay vs qualified residential mortgage deals w/. risk retention and forces on secondary market |
| WHAT IS THE GFE | good faith estimate -required disclosure of known / anticipated fees, charges or settlement cost that mortgage applicant is likely to incur at closing |
| LAR | Loan Application Register - lenders subject to HMDA must comply certain data provide to fed gov and public a log of applicants |
| WHAT DOES THE FAIR HOUSING ACT DO | PROHIBITS discrimination in residential real estate transactions based on race, color, religion, national origin, gender, physical mental disability |
| ECOA prohibits discrimination in the granting of all credit on the basis of | race, color, religion, marital status, age, national origin, receipt of income, applicant exercised any right under consumer credit protection act |
| WHEN DOES RESPA APPLY VS NOT | when its 1-4 unit residental property not when commercial property, vacant land, 25+ acres , temp financing |
| WHAT IS THE PURPOSE OF TILA | to promote the informed use of consumer credit by requiring disclosures about terms and cost |
| WHAT REG IS RESPA WHO ENFORCES IT | REG X CFPB |
| WHAT REQUIREMENTS DO FINANCIAL INST HAVE TO FOLLOW? IN REGARD TO USA PATRIOT ACT | sets min standards for verfying customers identity requires establishment set anti money laundering programs which id and address financial crimes |
| WHAT IS THE CLOSING DISCLOSURE | discloses actual cost information at time of closing , helps consumer get understanding for final cost & terms of transaction |
| WHAT IS THE DIFFERENCE BETWEEN A "CONSUMER" AND A "CUSTOMER" | If they have a one off transactioal relationship if the relationship is on going |
| WHAT IS CONSIDERED A BUSINESS DAY UNDER RESPA /UNDER TILA | Respa any date on which the creditor is open to the public for carrying ALL of creditors business functions Tila any day except legal holidays & Sundays |
| WHAT ARE TRIGGER TERMS (STATE THEM) (4) | amount or % down payment amnt of any payment amount if any finance # of payments or period of repayment |
| WHAT IS THE ROLE OF A SETTLEMENT AGENT | on behalf of creditor the ensure all necessary docs signed - fee/other charges have been made / provide important disclosures- just monitor status of transaction |
| WHO IMPLEMENTS TILA WHO MAKES THE RULES /ENFORCES THEM | REG Z CONSUMER financial PROTECTION BUREAU |
| WHAT IS REGUALTION N BY WHO AND WHY WAS IT ISSUED | deals with Mortgage Acts & Practices Advertising Rule (MAPA RULE) issued by CFPB in order to prohibit false or misleading advertising or mortgage products |
| WHAT MUST A LO NOT DO FOR REAL ESATE AGENTS | may not provide a credit report for the purpose of prescreening a tenant for agents rental property |
| HOW DO WE FIND OUT IF A LOAN IS HIGH COST WHEN IS IT CONSIDERED HIGH COST | compare loans APR against APOR (average primer offer rate) if APR exceeds APOR by 6.5% 1st lien 8.5% on subordinate liens total points fees exceeds 5% of loan |
| WHAT IS TIP DESCRIBE | total interest percentage this discloses to brwrs total interest they will pay over life of loan expressed as % of original loan amount |
| WHAT IS PRIVATE RIGHT OF ACTION | BRWR can sue creditors individual if they feel they cant afford mortgage and ability to repay was not properly vetted |
| WHAT LOANS NEED TO COMPLY WITH TRID BUT NOT REPSA (3) | short term construction loans vacant land 25 acres or more |
| WHAT LOANS ARE EXEMPT FROM TRID (4) | home equity LOC (HELOCS) reverse mortgages mobile home loans from anyone who funds more that 5 loans in calendar yr |
| WHAT IS HUD WHAT DOES IT DO | the US dept of Housing & urban development Approves lenders who want to make FHA insured loans & enforces Fair Housing Act |
| WHO SET LIMITATIONS TO PROHIBIT PREPAYMENT PENALTIES WHAT ARE THE LIMITATIONS | DODD FRANK ACT prohibited when ARMs loan, APR exceeds APOR 1.5% 1st lien (higher price), loans that don't meet QM definition |
| WHAT DOCS ARE REQUIRED WITHIN 3 BUS-DAYS OF REC A LOAN (4) hemc | -Loan estimate (GFE) -mortgage loan servicing disclosure -home loan tool kit ( hud special info booklet on settlement cost) -counselor booklet |
| WHAT ISSUES DOES THE DODD-FRANK ACT ADDRESS (5 larpa) | loan originators compensation anti-steering provisions > safe harbor risk retention requirements ability to repay provisions prepayment penalty restrictions |
| WHAT IS THE TRANSFER OF OWNERSHIP DISCLOSURE HOW LONG DO THEY HAVE TO INFROM BRWR | per TILA entities that purchase or acquire mort loan to provide brw name, address, number, location where trans of ownership is recorded 30 days after acquisition (receiving) |
| WHAT DOES DODD-FRANK REQUIRE MORTGAGE LENDERS TO VERIFY BEFORE EXTENDING CREDIT WHEN DOES THIS APPLY VS NOT | ATR (ability to repay) applies all consumer purpose mortgage EXCEPT business, home equity (HELOC), reverse mortgage, time share loans, m temp financing |
| WHT IS THE PURPOSE OF THE USA PATRIOT ACT | intended to help the fed government respond to potential terrorists threats & monitor suspicious activity |
| WHAT IS THE AML WHAT DO THEY DO | anti-money laundring program its designed to id, detect and report possible red flags of money laundering |
| WHAT IS THE SAFEGUARDS RULE WHO IS RESPONSIBLE FOR ENFORCING | GLBA requires financial inst. to have written a security plan to protect confidentiality and integrity of consumer info FTC |
| WHEN DOES RESPA NOT PROHIBIT JOINT MARKETING EFFORTS WHO CAN DO IT | long as each party pays their share LO and real estate agents |
| WHAT ARE THE 3 LEGAL THEORIES CFPB INDICATED ARE WAYS TO IDENTIFY DISCRIMINATION | -dispararte impact: practice appears to be non-discriminatory but unintentionally has neg effect on members of certain classes -disparate treatment- defined as difference in the way classes are treated (handshake) -overt discrimination: explicit or |
| WHAT IS AN ADJUSTABLE RATE MORTGAGE | a mortgage loan w/ interest that can change at any point during the life of the loan |
| HOW LONG DO LENDERS HAVE TO NOTIFY APPLICANTS OF ACTION TAKEN ON THEIR LOAN | 30 days after receiving the completed app |
| WHAT IS A KICKBACK WHAT IS THE FINE | RESPA providing something of value to a 3rd party in return of a client, business 10k or one year in prison |
| WHAT IS THE DUAL COMPENSATION RULE WHO CREATED IT ? | restricts a LO from being paid by both lender and borrower Federal Reserve Board |
| WHAT IS THE MAXIMUM CUSHION ON AN ESCROW ACCOUNT | 2 months 1/6 of year |
| WHAT IS TRID WHAT FORMS DID IT INTEGRATE (2) | TILA-REPSA INTEGRATED RULE GFE & truth in lending disclosures LE, HUD-1 settlement disclosure, CD |
| WHAT IS REGULATION TRID UNDER | REG Z |
| HOW DO YOU COMPLY WITH ANTI-STEERING | show in consumers best interest |
| FCRA STAND FOR | FAIR CREDIT REPORTING ACT |
| WHAT ARE RULES IN PLACE FOR LENDERS DEALING W/ FCRA | only request credit info for applicant who applied with give written authorization if adverse action must notify (unfavorable decision against consumer based off credit report) |
| WHAT DOES FCRA REQUIRE | to provide individual with their credit report upon request, no charge , once per year |
| UNDER WHAT CIRCUMSTANCES CAN A REVISED LOAN ESTIMATE BE ISSUED (5) | brwr request change to terms of credit/settlemnt floating interest a changed circumstance after LE given brwr goes 10 bus-days w/o intend to proceed Construction loan & settlement is occur more than 60 days after loan estimate is given |
| WHAT IS A CHANGED CIRCUMSTANCE CATEGORIES | a special scenario after LE thats occurs or discovered = -higher settlement cost or change in brwr eligibility for loan -change in info relied on by credit when making LE -new info that impacts brwr eligibility or settlement cost - unexpected event |
| WHAT IS BSA WHAT DO THEY DO | Bank Secrecy Act fed Law requiring that financial inst take steps to prevent report cases of money laundering |
| WHAT WAS CREATED AS A RESULT OF FACTA | the red flag rule FACTA = FAIR and Accurate Credit Transaction Act requires business to implement a written ID theft prevention program to detect warning signs of id theft day 2 operations |
Created by:
cortnick1
Popular Standardized Tests sets