SAFE MLO National Test - Chapter 4

What does UDAAP stand for?
A. Unfair Decision Action Actual Plan
B. Understanding Deceptive or Abusive Acts or Practices
C. Unfair Deceptive or Abusive Acts or Practices
D. Understanding Decision Action Actual Plan

C. Unfair Deceptive or Abusive Acts or Practices

The GLBA specifically prohibits ______(the use of false pretenses to obtain consumers' personal financial information)
A. Pretexting
B. Kickbacks
C. Redlining
D. Steering

A. Pretexting

True or false:
Under RESPA the provision of anything of value in exchange for a referral would be considered a kickback

True

This act includes provisions to protect consumers personal financial information held by financial institutions
A. TILA
B. Gramm-Leach Bliley Act
C. Bank Secrecy Act
D. Fair Housing Act

B. Gramm-Leach Bliley Act

True or false:
Fraud for profit is more common that fraud for property

False

The difference between fraud and negligence is in the _____
A. Intent
B. Method
C. Crimes committed
D. Consequences

A. Intent

True or false:
TILA does require all print advertisements containing an interest rate to also contain an annual percentage rate express in a different font and type-size as the interest rate

False - Expressed in a SAME font and type-size

True or false:
Advertising ARM loans only in predominately minority neighborhoods while advertising fixed-rates loans only in non-minority areas would be an ethical advertising practice and does not violate the Fair Housing Act.

False - it is unethical and does violate the Fair Housing Act.

What does SAR stand for?
A. Service Automatic Response
B. Service Authentic Reply
C. Safe Activity Report
D. Suspicious Activity Report

D. Suspicious Activity Report

Which act will require filing of a SAR when certain misrepresentation exists on a file?
A. TILA
B. Gramm-Leach Bliley Act
C. Bank Secrecy Act
D. Fair Housing Act

C. Bank Secrecy Act

The law requires companies to train all staff ________ on BSA compliance.
A. Semi-annually
B. Quarterly
C. Monthly
D. Annually

D. Annually

True or false:
Mortgage fraud and Predatory lending are the same

False

True or false:
Steering is considered to be a predatory lending practice

True

This terms means that mortgage professionals must put the well behind of their clients ahead of their own financial gain.
A. Fiduciary Relationship
B. Trust Relationship
C. Acquaintance Relationship
D. Consideration Relationship

A. Fiduciary Relationship

What does MAP rule stand for?
A. Multi Application Principal
B. Mortgage Answer Principal
C. Mortgage Acts Practices
D. Mortgage Application Practices

C. Mortgage Acts Practices

MAP is implemented by the CFPB's Regulation _____.
A. A
B. X
C. Z
D. N

D.N

This _______ is one of the simplest ways to communicate your corporate beliefs to employees and vendors alike.
A. Code of Honor
B. Code of Ethics
C. Mission Statement
D. Org chart.

B. Code of ethics