Federal Mortgage Related Laws

Under RESPA, what is the maximum fine that can be imposed for each instance of a kickback?

10000

To comply with the FACT Act, a mortgage loan originator should

place all loan applications and documentation in a secure place when not working on them.

What's another name for Regulation Z?

TILA

Which cost would be included in the APR calculation on the closing disclosure forms?

Mortgage insurance

Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high-cost" mortgages?

Home Ownership and Equity Protection Act (HOEPA)

Which federal regulation requires that the Loan Estimate be provided to the borrower within three business days of the time a loan application is taken?

RESPA

Which federal legislation requires that the borrower have the right to receive a copy of his or her credit report, without charge, annually?

FCRA

Which government agency monitors compliance with the ECOA?

Consumer Financial Protection Bureau

Which law ensures lenders use an annual percentage rate (APR) so that the borrowers have the information they need to make informed comparisons?(Which regulation)

Regulation Z

Which rule requires all financial institutions to design, implement, and maintain safeguards to protect customer information while it is in the custody and control of the institution and its agents?

Safeguards Rule

What regulation forbids the seller to require the use of a particular title company as a condition of sale?

Regulation X

According to the FCRA, when must a credit agency give a consumer a free copy of his credit report?

if the loan application is denied because of information in the report

How many days after receiving an adverse action notice does a consumer have to request a copy of the credit report on which the decision was based?

60

Which law allows a consumer who has had her credit card used by an identify thief to place a freeze on her credit report?

FACT Act

The Equal Credit Opportunity Act is implemented by (Regulation)

Regulation B.

Which rule mandates disclosure to consumers that mortgage relief providers have NO connection to any government program or agency?

MARS Rule

A lender has the minimum information sufficient to complete an application when the borrower provides six pieces of information, including the borrower's name, the borrower's gross monthly income, a property address, a loan amount, an estimate of property

Social Security number.

When disclosing the amount of premium for title insurance:

The creditor must disclose the amount of premium for lender's title coverage without any adjustment made for the owner's title policy.

On the Loan Estimate, broker fees and lender fees must be

lumped together.

The Red Flags Rule is part of the

Fair and Accurate Credit Transactions Act.

A mortgage servicer must wait _____ days before she is allowed to file for foreclosure or trustee's sale, if the borrower has not submitted an application for assistance.

120

One of the many tasks of the Consumer Financial Protection Bureau (CFPB) is to

ensure borrowers understand the fine print that explains the risks involved in using financial services.

The estimate for the interest rate shown on a Loan Estimate must be available for

There are no time restrictions.

The Truth in Lending Act is implemented by (Regulation)

Regulation Z.

RESPA prohibits lenders from requiring an escrow cushion of more than

2 months.

What law regulates settlement and closing procedures and practices?

RESPA

A mortgage loan originator must retain evidence of compliance with the Truth in Lending Act for at least ____ years after disclosures were required to be made.

2

Which law requires lenders to give consumers a Loan Estimate of closing costs?

RESPA

RESPA requires that a preliminary copy of the Closing Disclosure be provided to the borrower, if requested, how long prior to closing?

1 business day

Section 32, which governs high cost/high interest loans, is implemented by which federal legislation?

TILA

Seven years is the maximum length of time information can be reported on a credit report according to the Fair Credit Reporting Act, EXCEPT for

criminal convictions.

The Truth in Lending Act (TILA) was enacted to

prevent abuses in consumer credit cost disclosures.

The duty to investigate a consumer dispute falls to the information furnishers. According to the FCRA, how many days do they usually have to respond to the consumer from the receipt of notice of a dispute?

30

Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the

SAFE Act.

Under which federal legislation does the consumer have the right to receive a copy of the appraisal report on a dwelling that is to be used as collateral for a loan?

ECOA

On the last page of the loan estimate is the confirm receipt table. Which statement is true?

The consumer is not required to sign the loan estimate

According to the new FHA rules effective June 2013, mortgage insurance must be paid for at least how many years prior to cancellation?

11

If the closing disclosure needs to be revised resulting in an increase to the APR that becomes inaccurate, the addition of a prepayment penalty, or the change of a loan product, an additional __ business day waiting period applies.

3

On the closing disclosure form, the date issued is the:

Date the form is delivered to the consumer

If an event related to the settlement occurs during the _________calendar-day period after consummation that causes the closing disclosure to become inaccurate and results in a change to an amount paid by the consumer from what was previously disclosed.

30

Lyle calls XYZ Mortgage to inquire about their current rates, and gives them his name and phone number. Assuming that Lyle's name is on the National Do Not Call Registry, how long does XYZ Mortgage have to follow up with Lyle?

3 months

Regulation V is also known as the

Fair Credit Reporting Act.

Regulation X is also known as what law?

RESPA

Regulation Z applies to all

personal real estate credit transactions.

In January 2013, mortgage servicing rules were instituted by the CFPB to provide additional consumer protections related to

foreclosure.

The Home Ownership Equity Protection Act (HOEPA) is also known as (What section)

Section 32.

Which law was enacted to combat the issue of kickbacks and referrals?

RESPA

For how many days must the settlement charges detailed in a Loan Estimate be available?

10 business days

If a lender transfers the servicing of a mortgage, it must inform the borrower at least how many days in advance of the effective date of transfer?

15

Laura's name is on the National Do Not Call Registry. At what point after she closes a loan with ABC Mortgage must ABC stop contacting her to solicit new business?

after 18 months

Which rule allows consumers to opt out of having their private information shared?

Financial Privacy Rule

One of the most critical points of the Federal Reserve Loan Originator Compensation Rule is the prohibition of the practice of

steering.

A loan generally CANNOT be considered a _____________ mortgage if the points and fees paid by the consumer exceed 3 percent (%) of the total loan amount.

qualified

As of July 21, 2011, the Consumer Financial Protection Bureau (CFPB) assumed the rule-writing authority of Regulation C. This is the regulation that implements the

Home Mortgage Disclosure Act.

If the final APR on a fixed rate loan deviates from the initial APR shown on the closing disclosure by more than ________, an additional waiting period is triggered before the loan can close.

1/8 percent

A state law that requires payment of interest on an escrow account is

consistent with RESPA and could therefore be enforced by the state.

According to the Truth in Lending Act, how long is the right of rescission for borrowers who have NOT been provided with full disclosure of the APR (within stated limits)?

3 years

HMDA is implemented as Regulation

C

The Settlement Costs Booklet

guides borrowers through the home-buying process.

According to the ECOA, an adverse action notice is NOT required to include the

appraiser's name.

According to the FACT Act, which situation would NOT be a reason for a consumer to add an ID alert to a credit report?

a woman who changes her name after a divorce

How long does a lender have to cure a tolerance violation?

within 30 calendar days after settlement

Which federal regulation limits the length of time that adverse collection information may appear in a consumer's credit report?

Regulation V

Which factor is NOT considered when determining "average charge" calculations for settlement services?

Size of loan

Which federal act created the Consumer Financial Protection Bureau?

Dodd-Frank Act

Which federal law is NOT primarily intended to address issues of privacy and identity protection relating to credit?

ECOA