1000 Questions Flashcards
(63 cards)
The practice of getting people to sell their homes at bargain prices by suggesting that certain ethnic groups are going to move into the area is nicknamed:
Blockbusting
You and the borrower believe an Adjustable Rate Mortgage would be best for the borrower. What is the name of the booklet you are required to give?
CHARM Booklet
Consumer Handbook On Adjustable-Rate Mortgages is provided by the lender to the loan applicant at the time of application for certain adjustable mortgage loans.
How many days in advance of transferring a loan to another lender must the current mortgage servicer inform that customer of the transfer to another lender who will subsequently be servicing the loan?
15 days
After meeting with the borrowers to complete a loan application, you return to your office and order a Tri-Merged credit report. Now that you have a credit report, what Loan Disclosure must you now prepare and mail (or give) to them?
Notice to Home Loan Applicant
In a face-to-face application, what do you do if the borrower refuses to fill out the race, ethnicity, and gender section on Section X of the 1003?
Use your best guess and complete the information in Section X of the 1003.
Which is not part of the original loan application?
- Borrower’s marital status
- ECOA disclosure
- Borrower provided ethnicity
- Borrower provided birth date
ECOA Disclosure: A written ECOA Notice must be sent to the Applicant when a lender takes adverse action. ECOA disclosures must be kept for 25 months because Consumers can take Civil action (a lawsuit) which can be filed for ECOA violations to the 24 month
Which is not an application disclosure?
- Servicing disclosure
- Environmental hazard disclosure
- Appraisal disclosure
- APR disclosure
Environmental hazard disclosure
State law requires certain written disclosures to be made to prospective homeowners. The seller is required to disclose whether he or she is aware that the property has any environmental hazards such as asbestos, formaldehyde, radon, lead-based paint, fuel or chemical storage tanks, or contaminated soil or water.
What is not likely to happen if the lender/investor finds fraud?
- A 1% interest rate increase on the loan
- The lender and/or broker will be required to repurchase the loan
- The entire loan can be called due and payable
- The loan officer must pay back any premium made on the loan
A
What is the maximum penalty for providing false information on a federally related loan?
Up to $1,000,000 fine and jail time
What law requires the lender to collect borrower information for first mortgages and home improvement loans?
HMDA
HMDA requires the lenders to obtain what information for each borrower?
HMDA required the lenders to file a LAR (Loan Application Register) regarding the borrower’s: Ethnicity, Race and Sex (Section 10 of 1003 Loan Application)
Providing a referral fee to a realtor is?
- An acceptable practice
- An illegal practice
- An acceptable practice as long as it is a fair price for services actually provided
- Acceptable only if fully disclosed
its illegal done!
What are the penalties for giving a referral fee to a realtor?
$10,000 per incident and up to one year in jail
What is Section 8 of RESPA and penalties of violation?
prohibits kickbacks, fee-splitting and unearned fees.
$10,000 per incident and up to one year in jail
Which of the following does RESPA require on a purchase?
- Lead paint notice
- A 1008
- APR disclosure
- Settlement cost booklet
CFPB has issued an updated version of the home buying information booklet required under RESPA:
Settlement Cost Booklet
Know before you owe Booklet
HUD Special Information Booklet
Aggregate escrow requires that the borrower have which of the following?
- $0 in the account or no more than 2 months impounds in reserves
- $0 in account, or no more than 1 month impound in reserves
- No more than 1% of the principal balance of the loan maximum in the impound account
- $100 and no impound reserves
$0 in the account or no more than 2 months impounds in reserves
What is the minimum amount of time that a lender has to inform the borrower that they are transferring servicing?
15 days
A yield spread premium is disclosed on which document?
- TIL disclosure
- Good faith estimate
- Servicing disclosure
- Rescission disclosure
GFE
Which is the primary law that affects mortgage loan closings?
- TILA
- ECOA
- RESPA
- HMDA
RESPA
.If a loan officer were to take a loan application Tuesday at 1:00 p.m., what is the last day that the good faith estimate must be mailed or disclosed?
Friday before midnight
If you are a seller, it is acceptable to REQUIRE the use of a specific title provider:
1.if the requirement pertains to the seller’s own policy only.
2.if the other service provider is an affiliate.
3.as long as you provide the borrower with the appropriate disclosure within three
business days of the loan application.
4.only if the service provider is licensed.
- if the requirement pertains to the seller’s own policy only.
RESPA imposes requirements about or prohibits all of the following except:
1.legal kickbacks and referral fees.
2.the loan origination fee.
3.the amount of prepaids.
4.information that must be disclosed to the borrower at the loan application or within 3
business days of the application.
the loan origination fee
Regulation Z requires:
- disclosure of the settlement costs to buyers and sellers.
- disclosure of the impound accounts and the prepaid of the borrower(s).
- computation and disclosure of the APR to the borrowers.
- disclosure of servicing information on the loan
computation and disclosure of the APR to the borrowers.
If a borrower and a co-borrower are refinancing a home that they both occupy, at the closing -
who must receive a copy of the rescission disclosure?
Both Borrowers
