Miscellaneous Laws
Which act requires creditors to have and maintain CIPs?
PATRIOT Act
Which if the following are you allowed to pay an appraiser on?
A. Timeliness
B. Quality
C. Value
D. Both A & B
D. Both A & B
What are the 3 primary categories under HMDA?
Race, Ethnicity, Gender
How many hours of Electives CE are required for a licensed MLO?
A. 1
B. 2
C. 3
D. 12
A. 1
Name all 4 of the non-conventional loan programs:
FHA, VA, USDA, FHA HECM
If a consumer is on the National do not call list and submitted an application online, in what time frame are you allowed to contact them?
90 days
True or False: If Mary gets a HOEPA loan in May 2018 she can refinance it into another HOEPA loan in March 2019.
False
What is the purpose of the Community Reinvestment Act and what year was it inacted?
1977, banks are eligible for bonus payments for not redlining
What two organizations came together to form the NMLSR?
CSBS + AARMR
What is the maximum LTV on a conventional loan with PMI?
95-97%
What are the 3 parts of the Financial Services Modernization Act of 1999?
(Double Points if you can explain them)
Safeguards Rule: safeguard NPPI, lock up your desk
Pretexting Provisions:don't pretend to be from the government
Financial Policy Rule:defines NPPI
If Jose puts out an ad claiming a loan with an APR of 5.3%, what other terms are triggered to be included as well in order to comply with TILA?
Nothing
What are the three discriminatory practices that are prohibited under the Fair Housing Act?
Blockbusting, Steering, and Redlining
When someone pleads “nolo contendere” to a financial fraud charge, what can happen to their NMLS license?
Revoked
At what point can the funding fee on a VA loan be waived?
A. Never
B. If LTV < 80%
C. If disability rating of 10% or more
D. With Certificate of Reasonable Value
C. If disability rating of 10% or more
The MAP rule that governs advertisements is what regulation?
A. Reg X
B. Reg C
C. Reg Z
D. Reg N
D. Reg N
Which of the following is not a trigger for a HPML under HOEPA?
A. 1st lien: APR + 1.5% > APOR
B. 2nd lien: APR + 2.5% > APOR
C. Jumbo: APR + 2.5% > APOR
B. 2nd lien: APR + 2.5% > APOR
Joshua submits his application for a loan to MLO Maria on March 1st. The lender sends him a NOAT on April 15th. Is this violating any laws? If so, which?
Yes, ECOA
Kevin goes to apply for his NMLS license. Which of the following would not prevent him from obtaining it under NMLS guidelines?
A. A felony conviction 5 years ago for assault
B. A felony charge 2 years ago for fraud
C. A felony conviction 8 years ago for money laundering
D. A breach of trust conviction
B. A felony charge 2 years ago for fraud
Kyle is receiving a mortgage from Stark Lending Company who offers him an FHA loan with a 3.5% interest rate and a 4.3% APR. After closing, when must Kyle occupy his new home and how long is he required to stay there
Within 60 days, stay there for 1 year
At what point does MIP automatically cancel if the LTV begins at 91%?
A. 80% of LTV
B. 78% of LTV
C. After 11 years
D. Never
D. Never
Name the 4 most important prohibited loan terms for a HOEPA loan”
According to the Fair Housing Act, what are the two logos that are required?
If an MLO is an independent contractor, which of the following is he allowed to do?
A. Process loans
B. Originate loans
C. Discuss rates and terms
D. All of the above
A. Process loans
Anell is working with Stratton Oakmont Lending Services to obtain a mortgage for a new house he intends to buys. He tells MLO Trey that his parents are planning on gifting him $20,000 to use for his entire down payment. Which program is he prohibited from using?
A. FHA
B. VA
C. USDA
D. FNMA
D. FNMA