Save
Busy. Please wait.
Log in with Clever
or
show password
Forgot Password?
Don't have an account?  Sign up 
Sign up using Clever
or
Username is available taken
show password


Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account. Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't Know
Remaining cards (0)
Know
0:00
edit
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

NMLS Safe Exam Pt 1

Federal Law

QuestionAnswer
What does RESPA stand for? Real Estate Settlement Procedures Act
What is the primary purpose of RESPA? To protect consumers from unnecessarily high settlement charges.
What law prohibits kickbacks and referral fees? RESPA Section 8
What is Regulation X? The regulation that implements RESPA.
Who enforces RESPA? The Consumer Financial Protection Bureau (CFPB)
When must the Loan Estimate be provided? Within 3 business days of receiving a complete application.
What is the purpose of the Closing Disclosure? To provide the borrower with final loan terms and costs.
What law requires the Closing Disclosure? TILA via TRID
What is Regulation Z? The regulation that implements the Truth in Lending Act (TILA)
What is the purpose of TILA? To ensure consumers are informed about the cost of credit.
What is APR? Annual Percentage Rate – the cost of credit expressed as a yearly rate.
What is the 3/7/3 rule under TILA? LE must be delivered within 3 days, wait 7 days to close, 3 days for redisclosure.
What does ECOA stand for? Equal Credit Opportunity Act
What is Regulation B? The regulation that implements ECOA.
What is prohibited under ECOA? Discrimination based on race, color, religion, national origin, sex, marital status, or age.
What does HMDA stand for? Home Mortgage Disclosure Act
What is the purpose of HMDA? To track lending patterns and detect discrimination.
What is the document used to report HMDA data? Loan/Application Register (LAR)
Who enforces HMDA? CFPB and other federal agencies depending on institution type.
What is the retention requirement for HMDA LAR? 3 years
What is the SAFE Act? Secure and Fair Enforcement for Mortgage Licensing Act
What does the SAFE Act require? Nationwide licensing system and registration of MLOs.
Who must be licensed under the SAFE Act? MLOs who are not employed by depository institutions.
What is the purpose of the NMLS? To track and regulate mortgage loan originators nationwide.
What does MAP Rule regulate? Mortgage advertising practices
What agency enforces MAP Rule? CFPB
What are the penalties for violating RESPA Section 8? Up to $10,000 fine, one year in prison, or both.
What is an ABA under RESPA? Affiliated Business Arrangement – when a party refers business to a service provider they have an ownership interest in.
What must an ABA disclosure include? Nature of the relationship, range of charges, and a statement the consumer is not required to use the provider.
When must an ABA disclosure be provided? At the time of referral or within 3 business days if made during the application process.
What does the Initial Escrow Statement disclose? Estimated taxes, insurance, other charges, and monthly escrow payments.
When must the Initial Escrow Statement be provided? At closing or within 45 calendar days of closing.
What is the purpose of the Servicing Disclosure Statement? To disclose the likelihood of the loan being sold or transferred.
When must the Servicing Disclosure be provided? Within 3 business days of receiving the application.
What law created the CFPB? The Dodd-Frank Wall Street Reform and Consumer Protection Act.
What is the purpose of the CFPB? To supervise financial institutions and enforce consumer protection laws.
What does the Fair Housing Act prohibit? Discrimination in housing-related transactions based on protected characteristics.
What does FCRA stand for? Fair Credit Reporting Act.
What is the purpose of FCRA? To ensure accuracy, fairness, and privacy of consumer credit information.
What is the FACT Act? Fair and Accurate Credit Transactions Act – amendment to FCRA.
What does the FACT Act establish? Identity theft protections, Red Flags Rule, and free annual credit reports.
What is the Red Flags Rule? Requires financial institutions to implement identity theft detection programs.
What is GLBA? Gramm-Leach-Bliley Act – governs protection of consumer financial information.
What are the key components of GLBA? Safeguards Rule, Financial Privacy Rule, and Pretexting Provisions.
What is the Safeguards Rule? Requires institutions to have a written information security plan.
What is the Privacy Rule? Governs collection and disclosure of consumers’ personal financial information.
What does the Do Not Call Registry do? Allows consumers to opt out of telemarketing calls.
How long must companies retain Do Not Call records? 24 months.
What does the E-Sign Act allow? Electronic signatures and records to be legally valid.
What must be obtained before using electronic documents? Consumer’s informed consent.
What is the penalty for violating the Do Not Call rules? Up to $51,744 per call (as of 2023, indexed annually).
What does the Equal Credit Opportunity Act (ECOA) prohibit? Discrimination in any aspect of a credit transaction.
What regulation implements ECOA? Regulation B.
What are the protected classes under ECOA? Race, color, religion, national origin, sex, marital status, age, receipt of public assistance.
How long must an MLO retain ECOA records? 25 months.
What notice must be provided under ECOA when credit is denied? Adverse Action Notice.
Within how many days must an Adverse Action Notice be sent? 30 calendar days from application.
What does HMDA require lenders to collect? Demographic data to monitor discriminatory lending practices.
What form is used to report HMDA data? Loan Application Register (LAR).
When must HMDA data be submitted? Annually by March 1st.
What does the Fair Housing Act prohibit? Discrimination in housing sales, rentals, and financing.
What classes are protected under the Fair Housing Act? Race, color, national origin, religion, sex, familial status, disability.
Which law created the Consumer Financial Protection Bureau (CFPB)? The Dodd-Frank Act.
What is the role of the CFPB? To supervise financial institutions and enforce consumer protection laws.
What does the Mortgage Acts and Practices (MAP) Rule regulate? Advertising of mortgage credit products.
Who enforces the MAP Rule? The CFPB.
What must mortgage advertisements avoid under MAP Rule? Misleading statements or omissions of key terms.
What is the purpose of the Truth in Lending Act (TILA)? To promote informed consumer credit use by requiring disclosures.
What is the regulation that implements TILA? Regulation Z.
What is the Right of Rescission? The right to cancel certain credit transactions within 3 business days.
What loans have the Right of Rescission? Refinance or home equity loans on a primary residence.
What must be disclosed under TILA? APR, finance charge, amount financed, total payments.
What is the purpose of the APR disclosure? To show the true cost of borrowing including fees.
What is a triggering term in an ad? A loan term that requires additional disclosures under TILA.
Give an example of a triggering term. “Low monthly payments” or “No down payment.”
What is required if an ad uses a triggering term? Disclosure of APR,
What does the RESPA Section 6 regulate? Servicing of mortgage loans and borrower protections.
What is a Qualified Written Request (QWR)? A borrower’s written request regarding errors or information about loan servicing.
How soon must a servicer acknowledge a QWR? Within 5 business days.
How long does the servicer have to resolve a QWR? Within 30 business days (can be extended by 15 with notice).
What is a servicing transfer notice? A notice sent when servicing rights are transferred to another company.
When must the servicing transfer notice be sent? At least 15 days before the effective transfer date.
What is the grace period during a servicing transfer? 60 days during which no late fees or negative credit reporting can occur due to payment sent to old servicer.
What are the penalties for violating RESPA Section 6? Actual damages, additional damages up to $2,000 per violation, class action up to $1 million.
What is the purpose of the Special Information Booklet? To inform borrowers about the home buying and settlement process.
When must the Special Information Booklet be provided? Within 3 business days of application for purchase transactions.
What loans are exempt from the Special Information Booklet? Refinance, subordinate lien, reverse mortgages, and non-purchase transactions.
What is an Escrow Account? An account where a portion of monthly mortgage payments are held to pay property taxes and insurance.
What is the Aggregate Escrow Analysis? A review to ensure accurate collection and disbursement of escrow funds.
When must an initial escrow statement be provided? At closing or within 45 days.
When must an annual escrow statement be provided? Once per year.
What happens if the escrow surplus is over $50? It must be refunded to the borrower within 30 days.
What happens if the escrow surplus is $50 or less? It may be refunded or credited to the borrower’s account.
What is the Loan Estimate (LE)? A disclosure of estimated loan terms, payments, and closing costs.
When is the LE due to the borrower? Within 3 business days of receiving a complete application.
What is a complete application under TRID? Name, income, SSN, property address, estimate of value, and loan amount sought.
What is the Closing Disclosure (CD)? A final disclosure of actual loan terms and closing costs.
When must the CD be delivered? 3 business days prior to consummation.
What must happen if the CD is revised? A new 3-business-day waiting period may apply for significant changes.
How long must the LE be retained? 3 years.
How long must the CD be retained? 5 years.
What is considered a business day under TRID? Any day the lender’s offices are open for substantially all business functions.
What is a precise business day? All calendar days except Sundays and federal holidays.
Created by: jenniferhudson
Popular Real Estate sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards