SAFE Exam Flashcards
(158 cards)
1
Q
Which of the following documents would Unique Identifier (NMLS #) appear on?
A
- 1003 Loan Application
- Promissory Notes
- Mortgages
- Trust Deeds
2
Q
Which of the following documents would Unique Identifier (NMLS #) NOT appear on?
A
Appraisal Reports
3
Q
NMLS number is also known as?
A
Unique Identifier
4
Q
What does UST stand for?
A
Uniformed State Test
5
Q
Which is the one for individual application?
A
MU4
6
Q
What is the passing score for the exam?
A
75%
7
Q
If you fail the exam, how long do you have to wait before your next exam?
A
30 Days
8
Q
If you fail three times, how long do you have to wait?
A
180 Days (6 months)
9
Q
In order to keep your license, what do you have to do?
A
8 hrs of continued education. Must be completed before Dec. 31st
10
Q
When does your license expire?
A
12/31 unless they renew during renewal period.
11
Q
What is the renewal period for NMLS License?
A
Nov. 1 - Dec. 31
12
Q
How long is your license valid?
A
5 years
13
Q
Equal Credit Opportunity Act is which Regulation?
A
Regulation B
14
Q
What law says that a borrower has 90 days to request a copy of the appraisal?
A
ECOA (Equal Credit Opportunity Act), Regulation B
15
Q
What law says the lender has 30 days to deliver a copy of the appraisal?
A
ECOA (Equal Credit Opportunity Act), Regulation B
16
Q
How many days does a borrower have to request a copy of the appraisal?
A
90 days (3 months)
17
Q
How many days does a lender have to deliver a copy of the appraisal?
A
30 days (1 month)
18
Q
Which Law/Regulation allows the borrower to challenge the VALUE of the appraisal?
A
ECOA (Equal Credit Opportunity Act), Regulation B
19
Q
If the application for credit is DENIED base on the Appraisal (Value), a borrower has how many days to request a copy of the appraisal?
A
90 days (3 months)
20
Q
If the application for credit is DENIED base on the Appraisal (Value), a lender has how many days to deliver a copy of the appraisal?
A
30 days (1 month)
21
Q
HMDA stands for…
A
Home Mortgage Disclosure Act
22
Q
HMDA is which Regulation?
A
Regulation C
23
Q
Regulation C is also known as…
A
HMDA (Home Mortgage Disclosure Act)
24
Q
HMDA allows regulators to do what?
A
Reg C - See where the discrimination takes place.
25
Regulation B is also known as...
ECOA (Equal Credit Opportunity Act)
26
Where is Home Mortgage Disclosure Act found?
Section 10 (X)
27
What law allows uses Section 10 to identify possible discriminatory practice?
HMDA (Home Mortgage Disclosure Act), Regulation C
28
Which Section of the 1003 collects information for government monitoring purposes?
Section X
29
RESPA stands for...
Real Estate Settlement Procedure Act
30
RESPA is which Regulation?
Regulation X
31
TILA stands for...
Truth In Lending Act
32
TILA is which Regulation?
Regulation Z
33
TILA deals with what?
Credit, APR, and Advertising of Consumer Laws
34
What law deals with credit, APR, and advertising of consumer laws?
TILA (Truth in Lending Act), Regulation Z
35
HPA stands for...
Homeowners Protection Act
36
HPA deals with what?
PMI (Private Mortgage Insurance)
37
PMI applies to what type of loans?
Conventional Loans
38
PMI does NOT apply to what type of loans?
Government Loans
39
PMI is required when borrower pays less than what percentage of down payment?
20%
40
Who does PMI protect?
The Lender
41
SAFE Act stands for...
Secure and Fair Enforcement Act
42
HERA stands for...
Housing and Economic Recovery Act
43
What law created the SAFE Act?
HERA (Housing and Economic Recovery Act)
44
HERA created which Act?
SAFE (Secure and Fair Enforcement Act)
45
FCRA stands for...
Fair Credit Reporting Act
46
FCRA (Fair Credit Reporting Act) is which Regulation?
Regulation V
47
What law deals with credit application?
ECOA (Equal Credit Opportunity Act), Regulation B
48
What law deals with credit reports & credit reporting agencies?
FCRA (Fair and Credit Reporting Act), Regulation V
49
What does FACT Act (FACTA) stand for?
Fair and Accurate Credit Transactions Act
50
What law deals with Identify Theft?
FACTA (Fair and Accurate Credit Transactions Act)
51
What law has Section 1004 rules?
FACTA (Fair and Accurate Transactions Act)
52
Section 1004 rules are also known as...
Red Flag Identity Theft Rules
53
GLB (GLBA) stands for...
Gramm Leach Bliley Act
54
GLB has three policies. What are they?
SPF (Safeguarding, Pretexting, and Financial Privacy)
55
What law says that there must be a Safeguarding policy?
GLB (Gramm Leach Bliley)
56
What is a Safeguarding Policy?
A policy on how companies must keep a borrower's information safe.
57
What is a Pretexting Policy?
A policy to keep other from getting access to a borrower's information under false pretenses (pretenders).
58
What law says that there must be a Pretexting Policy?
GLB (Gramm Leach Bliley Act)
59
What law says that there must be a Financial Privacy Policy?
GLB (Gramm Leach Bliley Act)
60
What is a Financial Privacy Policy?
A policy that governs the collection of non-public information and how it is shared with affiliates.
61
What law says that a lender/creditor must give a borrower opportunity to Opt-In or Opt-Out of non-public information from being shared?
Financial Privacy Policy of GLB (Gramm Leach Bliley) Act
62
HOEPA stands for...
Homeownership and Equity Protection Act
63
Section 32 of HOEPA deals with...
High Cost Loans
64
Section 35 of HOEPA deals with...
High Priced Loans
65
HOEPA loans are part of which larger law?
TILA (Regulation Z)
66
AfBA/ABA stands for...
Affiliated Business Arrangement
67
If you own more than what percent of the affiliated business, are lenders then required to disclose the arrangement?
1%
68
When must a lenders disclose to a borrower of the Affiliated Business Arrangement disclosure be made if they own 1% or more?
Immediately (Prior to doc sign)
69
Which of the following can you not discriminate against according to Civil Rights Act?
1. Age, 2. Race, 3. Religion, 4. All of the above
Race
70
Escrow account is also known as...
Impound account aka Reserve account
71
What type of a mortgage does an escrow account create?
Budget Mortgage
72
What is a Budget Mortgage?
PITI Mortgage
73
What does CFPB stand for?
Consumer Financial Protection Bureau
74
What entities created CFPB?
Dodd-Frank Act and Consumer Finance Protection Act
75
What law does not report to CFPB (Consumer Financial Protection Bureau)?
FHA (Fair Housing Act)
76
What law deals with Settlement Services?
RESPA - Regulation X
77
What type of property does RESPA deal with?
1-4 unit Residential Property (owner occupied)
78
Which of the following is covered by RESPA?
1. All cash sales
2. Rental Property more than 4 units
3. Commercial Property
4. Agricultural Property
5. 1-4 unit Residential Property
1-4 unit owner occupied property
79
True or False: Violating RESPA could result in a fine up to $10,000 and/or imprisonment up to one year.
True
80
What law has penalty of $10,000 fine and/or imprisonment up to one year?
RESPA - Regulation X
81
RESPA Section 6 deals with what?
Mortgage servicing and mortgage servicing abuses.
82
What law deals with mortgage servicing and mortgage servicing abuses?
RESPA Section 6
83
RESPA Section 8 deals with what?
Kickbacks, fee-splitting, and unearned fee?
84
What law prohibits giving/accepting kickbacks, fee-splitting, and unearned fees?
RESPA Section 8
85
RESPA Section 9 deals with what?
Deals with title insurance
86
What law prohibits a seller from requiring the home buyer to use a particular title insurance company as a condition of a sale?
RESPA Section 9
87
RESPA Section 10 deals with what?
Escrow Accounts
88
Lender may not required a borrower to pay into escrow account no more than what portion of annual disbursement EACH MONTH?
1/12th
89
Lender is allowed to take up to how many months of CUSHION at closing?
2 months (1/6th the annual amount)
90
What law says that a lender must disclose an Annual Escrow Analysis?
RESPA Section 10
91
At what point will a lender be required to return money taken from an escrow accounts?
Excess over $50
92
What makes up a complete application?
1. Name(s) of borrower
2. SSN for each borrower
3. Gross monthly income of borrowers(s)
4. Loan amount sought
5. Address of subject property
6. Estimate of property value
93
Which of the following is NOT allowed on the address of subject property?
1. UNK
2. NA
3. TBD
NA
94
In which instances, a lender does NOT have to provide the Initial Disclosure?
1. Borrower withdraws the application
| 2. Lender turns down the loan before the 3 business-day period end
95
What are the Initial Disclosures?
1. Home Loan Toolkit (RESPA) - Purchases Only
2. Loan Estimate (TILA)
3. Mortgage Servicing Disclosure Statement (RESPA)
4. List of HUD Approved Home Counselors (RESPA)
96
When a borrower completes the application, the Initial Disclosures must be provided within how many days?
At or within 3 business days of the application
97
Loan Estimate was formerly known as...
Good Faith Estimate
98
What law requires a borrower to get a Loan Estimate?
TILA (Truth in Lending Act)
99
What law states that a borrower must get a Loan Estimate at/or within 3 days of the application?
RESPA (Real Estate Settlement Procedure Act)
100
Before Settlement a borrower must receive what disclosures from a lender?
1. Affiliated Business Arrangement (AfBA) Disclosure (1% or more ownership) (RESPA)
2. Closing Disclosure: 3 days prior to consummation (TILA)
101
What law states that a borrower must receive a Closing Disclosure?
TILA (Truth in Lending Act)
102
What law states that a borrower must receive a Closing Disclosure 3 days prior to consummation and again at consummation?
RESPA (Real Estate Settlement Procedure Act)
103
When must a borrower receive a Servicing Transfer Statement (Goodbye Letter)?
15 days prior to transfer
104
What law requires a lender to give a borrower a Servicing Transfer Statement?
RESPA (Real Estatement Settlement Procedure Act)
105
What fees may be charged prior to delivering the Loan Estimate?
Credit Report Fee
106
How long is a Loan Estimate good for?
10 business days
107
What is TIP?
Total Interest Percentage
108
Where do you find the information about the Rate Lock?
Loan Estimate
109
Who is ultimately responsible for giving the Closing Disclosure to the borrower?
Lender (creditor)
110
When would a borrower get an new Closing Disclosure?
1. Changes in the loan APR
2. Change in the loan product
3. Addition of a prepayment penalty
111
What law requires a lender to disclose the complete cost of credit to a loan applicant?
TILA (Regulation Z)
112
What law gives a borrower a 3-day right of rescission rule?
TILA (Regulation Z)
113
What types of loans gives a borrower 3-day right of rescission?
HELOC/REFI's
114
When a borrower exercises 3-day right of rescission, creditor must return any money collected within how many days?
20 Calendar Days
115
How many copies a Notice of Right to Rescind a borrower must receive?
Two Copies
116
If a borrower was not properly notified of the Right to Rescind, how long will the Right to Rescind period be extended to?
3 Years
117
TILA applies to transactions that are payable by written agreement with how many installments?
More than 4 payments
118
How long must TILA disclosures be kept?
2 years
119
How long must Loan Estimate be kept?
3 years
120
How long must Closing Disclosure be kept?
5 years
121
What does CHARM stand for?
Consumer Handbook on Adjustable Rate Mortgage
122
When would a borrower receive When Your Home is on the Line Disclosure?
HELOC/REFI
123
What is another word for APR?
Effective Rate
124
Interest Rate is otherwise known as...
Note Rate and Nominal Rate
125
What is the penalty for single violation of TILA?
$5,000/Day
126
What is the penalty for reckless violation of TILA?
$25,000/DAY
127
What is the penalty for violating TRID (TILA-RESPA Integrated Disclosure)?
$1,000,000
128
What does MDIA stand for?
Mortgage Disclosure Improvement Act (3/7/3 Rule)
129
Mortgage Disclosure Improvement Act is also known as...
3/7/3 Rule
130
Under MDIA, initial disclosure must be made how many days upon receiving completed application?
3 business day
131
Under MDIA, what is the earliest a borrower can consume a loan?
7 business day
132
Under MDIA, how many days prior to consummation must redisclosure be made?
3 business day
133
A redisclosure is required if APR is above or below initial disclosure by what percent on a 30 year fixed loan?
1/8% (.125)
134
A redisclosure is required if APR is above or below initial disclosure by what percent on NOT a 30 year fixed loan?
1/4% (.25)
135
Under what circumstance can redisclosure be waived?
Bona fide financial emergency
136
Business day according to TILA
All calendar days except Sunday and legal public holidays
137
No additional disclosures are required on advertising IF
Ad contains only APR or use generic terms.
138
What is considered business day for "initial" Loan Estimate?
Any day in which the bank is open for business
139
Qualified Mortgage protects who? The borrower or the lender?
The lender because it received "safe harbor" legal protection if a borrower defaults.
140
HOEPA (home ownership & equity protection act) is part of which act?
Truth in Lending Act (Regulation Z)
141
HOEPA covers which section?
Section 32 & 35
142
What does APOR stand for?
Average Prime Offer Rate
143
Under ECOA (Equal Credit Opportunity Act) how long must creditor notify applicants of their lending decision?
Within 30 days
144
What are protected class under Fair Housing Act?
sex, race, religion, color, national origin
145
What are protected class under ECOA?
sex, race, religion, color, national origin, age, marital status & public assistance
146
How long must ECOA records be kept?
25 months
147
How long does a borrower have to take civil action against a lender if ECOA violation has occurred?
24 months
148
If a credit application is denied, a consumer has how many days to request a copy of the appraisal?
90 days
149
If a consumer requests a copy of the appraisal, lender has how many days to provide the appraisal copy?
30 days
150
If application was approved, when will a borrower receive a copy of the appraisal?
3 business days prior to consummation
151
What law led to creation HMDA (Home Mortgage Disclosure Act)?
Redlining
152
How long does a borrower have to sue under FHA?
1 year
153
When can a borrower request cancellation of PMI?
80% LTV
154
When must a lender cancel PMI?
78% LTV
155
HMDA (Home Mortgage Disclosure Act) is also known as?
Regulation C
156
How often must lenders submit LAR (Loan Activity Reports) to HMDA?
Monthly
157
What law requires lenders to submit reports regarding ethnicity, race and sex of all applicants?
HMDA (Regulation C)
158
Which section contains the government monitoring information?
HMDA (Section 10)
