Loan Estimate
Required by which regulation?
Regulation Z (TILA)
RESPA requires the use of the Closing Disclosure for
A. any commercial or residential property.
B. one-to-four family residences.
C. any residential property.
D. single-family dwellings only.
B
What is the earliest that a mortgage loan may close after a potential borrower completes an application?
7 business days after receiving the required disclosures or after the disclosures are mailed
What two regulations require financial disclosures be provided to the applicant within three business days of a completed mortgage loan application?
Regulation X and Regulation Z
A disclosure that informs the consumer of the sale, transfer, or reassignment of a mortgage loan.
Servicing Transfer Disclosure Statement
What information is on page 3?
Comparisons (APR, TIP, Finance Charge, etc.)
Other considerations (discloses need for appraisal, assumption, HOI, late payments, loan acceptance, etc.)
Who is responsible for delivering the closing disclosure estimate to the borrower? Who is responsible for delivering the closing disclosure?
Settlement Agent
Creditor
On Form 1003, Section X: Information for Government Monitoring Purposes is used in order to comply with which federal law? What is the regulation letter that goes with this federal law?
HMDA Reg C
If a loan closes on Tuesday and all requirements for the Notice of Right to Cancel are met, when will the loan fund?
TILA
2 copies provided at closing to each person with ownership interest in the subject property
Monday
What law deals with the mortgage servicing disclosure statement and what is the timing requirement for this disclosure to be delivered to the borrower?
Law: RESPA, Section 6
Must be delivered to the consumer at application or within 3 business days
For how many days must the settlement charges detailed in a Loan Estimate be available?
10 business days
What is on pg 3 of the CD?
Calculates the Cash to Close and the Summary Transaction details
What fee may be collected prior to delivering required disclosures?
Credit Report Fee
When a creditor denies a loan, what disclosure do they send to the borrower and what is the timing requirement on sending this disclosure?
Notice of Adverse Action
Within 30 calendar days of receiving the completed application
What law deals with the AfBA and what is the timing requirement for this disclosure to be provided to the borrower?
Law: RESPA - Section 8
At the time of referral or within 3 business days if mailed
Team currently in last place (that did not pick this box) gets to choose the question
tbd
What law requires that all real estate broker and mortgage broker compensation be disclosed on the CD?
RESPA
A document used to disclose a borrower's net worth by itemizing assets and liabilities is a
financial statement
What law deals with the Privacy of Consumer Financial Information Rule, what is the rule's regulation letter and who enforces it? What disclosure is required to be given to borrower's under this law/rule?
GLBA, Regulation P
CFPB and FTC
Privacy Notice - explains an institution's information sharing practices
What law requires that the CFPB home loan toolkit is provided to a borrower? What is the timing requirement?
RESPA
at application or within 3 business days
What information is on page 2? Give 1 example under each category.
Loan costs (origination charges, services you can and can't shop for, total loan costs)
Other costs (taxes and gov fees, prepaid, other)
Calculating cash to close (loan amount, total closing costs, estimated total payoffs, payments)
A buy down appears on a closing disclosure as a
Charge to the borrower
According to HMDA, what must be forwarded to the regulator by March 1 of each year?
What three disclosures are specific to ARMs?
CHARM booklet
"Loan Specific" disclosure clearly outlining the terms of the programs they have shown interest in
Notification of Interest Rate Changes
What loans does the HOEPA Disclosure apply to, what law deals with the HOEPA Disclosure, and what is the timing requirement?
High Cost Loans
TILA Section 32
To high cost loan borrowers 3 business days prior to consummation of their loan