Laws & Regulations
What law deals with credit, APR & advertising of consumer loans?
TILA/REGULATION Z
What type of mortgage requires a non-refundable funding fee?
VA Loan
Which regulation requires the lenders to
“BE EQUAL” when extending credit to borrowers?
ECOA – Regulation B
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?
90 days
Redlining is part of which regulation/Law?
Fair Housing Act
Which regulation prohibits kickbacks?
RESPA
What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan?
Acceleration Clause
Conforming Loans follow the guidelines of which regulators?
Fannie Mae and Freddie Mac
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?
30 days
High Priced Loans are part of which larger regulation?
Reg Z/TILA
Which regulation
requires the lender to cancel PMI when the loan reaches 78% LTV?
HPA – Homeowners Protection Act
How old must a borrower be to qualify for a Reverse Mortgage?
62 years old
Blockbusting is part of which regulation/Law?
Fair Housing Act
If a loan application is APPROVED, under ECOA rules and regulations, when MUST a copy of the appraisal be provided to the borrower?
3 business days prior to the loan closing
Mortgage Disclosure Improvement Act is part of which larger regulation?
Reg Z/TILA
Which regulation prohibits fee splitting?
RESPA
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
Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is moving in the neighborhood is called?
STEERING
A borrower is refinancing his home. How much time does Reg Z give him to change his mind (rescind)?
3 days
How long must TILA Disclosures be kept?
2 years
(exceptions – LE is kept for 3years and CD is kept for 5 years)
RESPA is the acronym used to describe which Law?
Real Estate Settlement Procedures Act
What type of lender “insures” mortgages?
FHA approved lenders
What does HOEPA stand for?
Home Ownership and Equity Protection Act
Which Regulation established the 3-day right of rescission rule?
TILA/REG Z
Which law/regulation states that a Bankruptcy can only remain on your credit for a MAX of 10 years?
FCRA – Fair Credit Reporting Act – Reg V