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MLO EXAM > Federal laws > Flashcards

Federal laws Flashcards

1
Q

The real estate settlement procedures act (RESPA) is implemented as what regulation ?

A

Regulation X

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2
Q

Which government agency enforces the RESPA regulations?

A

CFPB

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3
Q

RESPA is concerned with

A

Kickbacks

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4
Q

The good faith/loan estimate must be sent to the borrower within how many business days of receiving a loan application?

A

3

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5
Q

The special information booklet must be sent to the borrower within how many business days of receiving a loan application?

A

3

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6
Q

The mortgage servicing disclosure statement must be sent to the borrower within how many business days of receiving a loan application?

A

3

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7
Q

How often must a summary of escrow activity statement be sent to the borrower?

A

Once a year

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8
Q

RESPA requires what to be given to the borrower when the loan servicer changes?

A

Servicing transfer statement

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9
Q

When must a referring party give the affiliated business arrangement disclosure to the consumer?

A

At or prior to time of referral

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10
Q

A borrower is entitled to request and obtain a copy of the HUD-1 Settlement statement how many days before closing?

A

1

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11
Q

After an escrow account analysis, money must be refunded if the over-paid amount equals or exceeds:

A

$50

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12
Q

The servicer has how many days to notify the borrower if the servicing rights have been sold and are being transferred to another company?

A

15

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13
Q

A borrower who makes a timely payment to the old servicer after a loan transfer, can be penalized after how many days if he still is not sending the payment to the correct servicer?

A

60

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14
Q

What is the maximum criminal penalty for a kickback violation?

A

$10,000 and a year in prison

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15
Q

The HUD-1 Settlement statement is required for what type of transaction?

A

Reverse mortgage

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16
Q

The maximum escrow cushion that a lender can require is:

A

1/6 of total yearly disbursements

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17
Q

The lender has how many days after settlement to refund any portion of charges on the HUD-1 that exceed the acceptable variance?

A

30

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18
Q

The Equal Credit Opportunities Act (ECOA) is implemented as which regulation ?

A

Regulation B

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19
Q

ECOA allows the applicant to have a copy of his:

A

Property appraisal report

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20
Q

What government agency enforces ECOA?

A

CFPB

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21
Q

A lender can discriminate based on:

A

Credit history

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22
Q

How many days does a lender have after receipt of an application to notify the applicant of its action on the application

A

30

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23
Q

How many days does an applicant have after receipt of an adverse action notice to request a statement of reasons from the lender ?

A

60

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24
Q

How many days does a lender have to send a statement of reasons for an adverse action after receiving a request from an applicant?

A

30

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25
Q

The truth in lending act (TILA) is implemented as what regulation?

A

Regulation Z

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26
Q

The truth in lending act (TILA) was implemented by the:

A

Federal Reserve Board

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27
Q

The truth in lending act is administered by:

A

CFPB

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28
Q

The TILA disclosure must be given to the applicant within how many days after receiving the signed loan application for a reverse mortgage?

A

3 business days

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29
Q

What is NOT considered a trigger term?

A

“Lowest rates in town”

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30
Q

The right of rescission does NOT apply to:

A

First mortgage on a purchase

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31
Q

The TILA must be re-disclosed if the APR for a fixed-rate loan changes by more than:

A

1/8%

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32
Q

HOEPA considers a loan to be high cost if the total charges to the borrower exceed what percent of the loan amount?

A

5%

33
Q

The truth in lending disclosure must be delivered within how many business days prior to closing a reverse mortgage?

A

7

34
Q

The APR must be finalized at least how many days before closing?

A

3

35
Q

The Home Mortgage Disclosure act (HMDA) was implemented by the:

A

Federal Reserve Board

36
Q

HMDA is also known as regulation:

A

C

37
Q

HMDA does NOT:

A

Set lending quotas for protected classes

38
Q

Which of the following is NOT required HMDA borrower information?

A

Income

39
Q

The Fair Credit Reporting Act is enforced by:

A

FTC

40
Q

Bankruptcies can be kept in the credit report for:

A

10 years

41
Q

Tax liens can be kept in the credit report for:

A

7 years

42
Q

Which of the following is NOT a credit repository?

A

FICO

43
Q

Borrowers are entitled to a free credit report if the lender takes adverse action against them and they ask for their report within how many days of receiving notice of the action?

A

60

44
Q

Which act includes provisions to protect consumers’ personal financial information held by financial institutions?

A

Gramm-Leach-Bliley

45
Q

Which act requires companies to give consumers privacy notices?

A

Gramm-Leach-Bliley

46
Q

What is the fine for Do Not Call violations ?

A

$43,792

47
Q

A company with which a consumer has an established business relationship may call for how many months after the consumer’s last purchase?

A

18

48
Q

If a consumer makes an inquiry or submits an application to a company, the company can call for how many months?

A

3

49
Q

Which of the following is allowed to call numbers on the Do Not Call list?

A

Charities

50
Q

The Fair and Accurate credit transaction act:

A

Allows consumers one free credit report. per year from each repository

51
Q

Who does the consumer contact if he has questions about his credit score?

A

Credit reporting agency

52
Q

The range of possible credit scores is:

A

300-850

53
Q

The red flags rule is concerned with:

A

Identity theft

54
Q

The reg flags rule is part of the

A

Fair and accurate credit transactions act (FACT act)

55
Q

Which of the following is a creditor as defined by the red flags rule?

A

Mortgage broker

56
Q

Which is NOT a requirement for a company’s red flags program?

A

Managed by the Human Resources department

57
Q

If a loan estimate is mailed, it must be mailed how many days before loan consummation?

A

7

58
Q

A lender has how many days to refund excessive variances on a closing disclosure?

A

60

59
Q

A change to which of the following does NOT trigger a new 3-day waiting period?

A

Seller credits buyer money for landscaping

60
Q

How many business days before loan consummation is a borrower entitled to see a revised Closing disclosure that did not trigger an additional 3-day waiting period?

A

1

61
Q

How many days before loan consummation is a seller entitled to see the closing disclosure?

A

0 (closing day)

62
Q

When a consumer requests the cancellation of their escrow account, the lender has how many business days prior to closing the account to deliver an escrow closing notice?

A

3

63
Q

When a lender cancels an escrow account for a reason other than default or termination caused by refinancing, repayment or rescission, they have how many business days prior to closing the account to deliver an escrow closing notice?

A

30

64
Q

For how many years must a lender retain the loan estimate?

A

3

65
Q

For how many years must a lender retain the closing disclosure?

A

5

66
Q

For how many years must a lender retain the escrow cancellation notice?

A

2

67
Q

For how many years must a lender retain the partial payment policy?

A

2

68
Q

The borrower must receive the closing disclosure how many business days before consummation?

A

3

69
Q

Which is NOT delivered to a reverse mortgage applicant?

A

Loan estimate

70
Q

Which of the following is NOT protected from discrimination by the fair housing act?

A

Elderly

71
Q

ECOA requires that a loan application is retained for how long after a denial?

A

25 months

72
Q

What should a loan originator do if an applicant refuses to disclose their nationality?

A

Select the box with their best guess

73
Q

What should a loan originator do on a loan estimate address field when the borrower requests a pre-approval

A

Enter one or more zip codes of likely locations

74
Q

How many housing counseling agencies must be listed on the housing counseling disclosure?

A

10

75
Q

What entity does HUD oversee?

A

Federal housing administration

76
Q

What is the maximum term for a HOEPA balloon bridge loan?

A

12 months

77
Q

A borrower must indicate an intent to proceed within how many business days after receiving the loan estimate ?

A

10

78
Q

Which law enacted mandatory cancellation of PMI under certain circumstances?

A

Homeowners Protection Act

79
Q

What regulation is
GLB
MAP
MARS

A

GLB- P

MAP- N

MARS- O

MLO EXAM (13 decks)

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