NMLS Word Scramble
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| 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 |
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cortnick1
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