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Test Questions Flashcards

1
Q

What law deals with credit, apr and advertising of consumer loans?

A

TILA/ Regulation Z

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2
Q

What 4 documents must be disclosed at or within THREE days of application?

A
  1. Home Loan Toolkit “Know Before you Owe Booklet”- HUD
  2. Special Information Booklet (only for purchases) “Loan Estimate”- TILA
  3. Mortgage Servicing Disclosure Statement
  4. List of HUD Approved Home Counselors
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3
Q

What TWO documents must be disclosed before settlement?

A
  1. Affiliated Business Arrangement Disclosure 1%

2. Closing Disclosures: 3 days prior TILA

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4
Q

What TWO documents must be disclosed at doc signing?

A
  1. Finalized Closing Disclosure

2. Intial Escrow Statement w/in 45 days of close

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5
Q

X is the letter used to describe which Regulation?

A

RESPA

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6
Q

Which regulation prohibits kickbacks?

A

RESPA

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7
Q

Which regulation requires the lender to cancel PMI when the loan reaches 78% LTV?

A

HPA homeowners protection act

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8
Q

Which regulation prohibits fee splitting?

A

RESPA

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9
Q

RESPA is the acronym used to describe what law?

A

Real Estate Settlement Procedure Act

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10
Q

What type of mortgage requires a non-refundable funding fee?

A

VA loan

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11
Q

What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan?

A

Acceleration Clause

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12
Q

What is the provision in a mortgage enabling a lender to demand full repayment if a borrower TRANSFERS the loan?

A

Alienation Clause

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13
Q

What does the CFPB stand for?

A

Consumer Financial Protection Bureau

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14
Q

What two laws created the CFPB?

A

Dodd Frank Act & Consumer Finance Protection ACt

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15
Q

Which regulation is designed to help meet the credit needs of the communites in which it operates?

A

CRA- Community Reinvestment Act

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16
Q

Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report if the application was denied?

A

90 days

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17
Q

Under ECOA rules and regulations, if an application for credit is denied, and if requested by the borrower- how many days does the lender have to provide a copy of an appraisal report?

A

30 days

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18
Q

If a loan application is approved, under ECOA rules and regulations, when must a copy of the appraisal be provided to the borrower?

A

3 business days prior to the loan closing

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19
Q

Conforming Loans follow the guidelines of which regulators?

A

Fannie Mae and Freddie Mac

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20
Q

Which regulations requires the lenders to BE EQUAL when extending credit to borrowers?

A

ECOA- regulation b

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21
Q

How old must a borrower be to qualify for a reverse mortgage?

A

62

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22
Q

Which regulation has the primary function of preventing Identity Theft?

23
Q

Which regulation has SECTION 114 Rules?

24
Q

Which regulation requires the creditor to verify the VALIDITY of any change of address received?

A

SECTION 114 of the FACT Act

25
What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property?
TENURE method
26
What is the fraud scheme where a borrower uses someone else's name to purchase the property, but that person will NOT be living on the property?
Straw borrower
27
What type of lender "insures" mortgages?
FHA approved lenders
28
What type of lender "guarantees" mortgages?
VA approved lenders and USDA approved lenders
29
What is the entity that loans money to fund purchases in rural areas?
USDA/ Dept of Agriculture
30
What is the value remaining in property after all liens and debts have been paid?
Equity
31
A borrower is refinancing his home. How much time does Regulation Z give him to change his mind (rescind)?
3 days
32
Which Regulation established the 3 day right of rescission rule?
TILA/ REG Z
33
Redlining is part of which regulation/law?
Fair Housing Act
34
Blockbusting is part of which regulation/law?
Fair Housing Act
35
Steering is part of which regulation/law?
Fair Housing Act
36
Trying to convince a homeowner to sell his home by implying that another race/ethnicity is moving in the neighborhood is called?
Blockbusting/ panic selling
37
Trying to convince a homeowner to purchase in a particular neighborhood based on her race, religion or ethnicity is called?
steering
38
Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is called?
Redlining
39
What does HOEPA stand for?
Home Ownership and Equity Protection Act
40
HOEPA Loans are part of which larger regulation?
TILA REG Z
41
High Cost Loans are part of which larger regulation?
Reg Z/ TILA
42
High Priced Loans are part of which larger regulation?
Reg Z/ TILA
43
Section 32 loans are part of which larger regulation?
TILA reg z
44
Section 35 loans are part of which larger regulation?
TILA
45
MDIA Act is part of which larger regulation?
TILA
46
Mortgage Disclosure Improvement Act is part of which larger regulation?
Reg Z TILA
47
What is another name for Annual Percentage Rate?
Effective Rate
48
What is another name for Interest Rate?
Note Rate or Nominal Rate
49
PITI divided by Gross Monthly income is referred to as what?
Housing Ratio of Front End DTI
50
PITI + monthly debt divided by Gross Monthly income is referred to as what?
Total Obligation Ratio- Black- end Ratio
51
How long must TILA Disclosures be kept?
2 years exceptions LE 3 years CD 5 years
52
What is the maximum amount of time that NEGATIVE info can remain on a credit report?
7 years
53
What is the maximum amount of time that a bankruptcy can remain on a credit report?
10 years

Mortgage Loan Originating (7 decks)

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