Mortgage University Final Quiz #2

Regulations

100

What is one elements specific to a customer identification program (CIP)?

Checking customers against government lists

200

The Equal Credit Opportunity Act requires that the customer must receive an approval, denial, counter offer or written notice of incompleteness with __________days of a completed application.

30-day rule

300

This act requires financial institutions to offer adequate banking services in the communities where the institution is located. In terms of lending, the intuition must offer credit in the areas where the institution accepts deposits.

Community Reinvestment Act (CRA)

400

_______________ is/are “formal written enactment of a legislative body, whether federal, state, city or county”.

Federal Statutes

500

This act requires financial institutions to offer adequate banking services in the communities where the institution is located. In terms of lending, the intuition must offer credit in the areas where the institution accepts deposits.

Community Reinvestment Act (CRA)

Acts

100

Which act replaced the replaced the Criminal Referral Form with the Suspicious Activity Report (SRT)?

Annunzio-Wylie Act of 1992

200

Which act reduced the volume of currency transaction reports by streamlining the CTR exemption and reporting processes?

Money Laundering Suppression Act

300

Which Act does the FACT Act Amend?

Fair Credit Reporting ACt

400

This act ensures consumers received greater and more timely information regarding costs pursuant to the real estate settlements process.

Real Estate Settlement Procedures Act ( RESPA)

500

This act was enacted to promote the informed use of credit by providing the cost of credit and the actual credit terms to consumers in a way that was easily understandable

TILA Truth in Lending ACt

Anti-Laundering

100

BSA, whose purpose is to identify money laundering, also known as the Currency and Foreign Transactions Act of 1970, stands for….

Bank Secrecy Act

200

Which act criminalized the act of money laundering?

USA PATRIOT Act

300

The ____________________ is a narrative description of any transaction that might reasonably be interpreted as having a connection to a possible violation of law or regulation.

Suspicious Activity Report (SAR)

400

The Placement stage of money laundering occurs when

Cash is either deposited or negotiable instruments purchased

500

When a business address does not correspond to the occupation, the funds generated by the business owner is from non-cooperative countries, and when safe deposit boxes are opened without a business purpose, these are all red flags for:

Terrorist Financing

Legal Eagle

200

This amendment made it illegal to structure a single currency transaction into multiple transactions of less than $10,00 to avoid CTR reporting requirements, criminalized structured transaction, criminalized money laundering and

Money Laundering Control Act

300

Which law establishes requirements for the cancellation of private mortgage insurance?

Homeowners Protection Act (HPA)

400

This document provides the cost of financing, payment changes, and important loan features.

Good Faith Estimate

500

_______________ is/are “formal written enactment of a legislative body, whether federal, state, city or county”.

Federal Statutes

Red Flags

100

What is one common red flag for laundering?

A reluctance to provide information

200

The BSA requires financial institutions to and banks to maintain certain record to create a paper trail that includes....

-Evidence of the purchaser’s identity -Records of all fund transfers of $10,000 or more -That records be maintained for at least five years

300

All cash transactions over $10,000 are considered of interest in potential money laundering schemes and required the filing of ________________?

Currency Transaction Reports (CTR)

400

Red flags that might indicate mortgage fraud for profit include....

A failure to conform to bank policies A completed HECM but has no deposited money A homeowner received a home for “free” Upfront fees are disguised Loans that are made for a third party

500

Red Flags that might indicate mortgage fraud for property include......

- A failure to conform to bank policies - An appraisal uses outdated comparable or pictures taken from odd angels to hide deficiencies in the property or surrounding areas - Loans that lack legitimate purposes -Inconsistencies throughout the application package and accompanying documents -Federal tax returns are not consistent with information on the application