Federal Mortgage-Related Laws
Which Act amended the Truth in Lending Act, establishing disclosure requirements and prohibiting equity stripping and other abusive practices in connection with "high-cost" mortgages?
HOEPA
In a mortgage loan, is the borrower the mortgagee or mortgagor?
mortgagor
According to the Truth in Lending Act, which loan type includes the right to rescind?
A. purchase
B. non-owner occupied refinance
C. construction
D. owner occupied refinance
D
ECOA requires a mortgage loan originator to inquire about a customer's marital status in a specific way. Which is the correct way to ask?
Are you married, unmarried, or separated?
Brenda earns a salary as well as a commission for every residential mortgage loan application she takes for her employer, a registered mortgage broker. Brenda must be a:
A. licensed mortgage loan underwriter.
B. certified loan processor.
C. commissioned mortgage loan examiner.
D. licensed mortgage loan originator.
D
Title V of the Housing and Economic Recovery Act of 2008 is more commonly known as the
SAFE Act
GNMA insures what type of mortgage backed securities?
FHA
Adam secures a loan to buy a small office building that he intends to rent. Under the Truth in Lending Act, how long will he have to change his mind after he signs the note?
0 days, there is no right of rescission
A for-profit MLO who claims to be a "counselor" in an ad about loan modification would be in violation of what law?
TILA
A licensed mortgage loan originator who is in charge of, and responsible for, the operation of the branch office of a mortgage broker or mortgage lender is referred to as the
Branch manager
Which federal regulation limits the length of time that adverse collection information may appear in a consumer's credit report?
Regulation V
A loan in which total payments over the life of the loan pay off the entire balance of principal and interest due at the end of the term is called
fully amortized
The duty to investigate a consumer dispute falls to the information furnishers. According to the FCRA, how many days do they usually have to respond to the consumer from the receipt of notice of a dispute?
30 days
Broker Tom advertises low interest rates and includes the accurate APR. However, when qualified applicants come in, Tom tells them that the smarter loan for them would be one with a slightly higher rate and more fees. Did Tom do anything wrong?
Yes, Tom could be accused of using a bait and switch tactic to earn more
Who is responsible for the accurate accounting of all monies due to and from the parties in a real estate sale?
Settlement or escrow agent
A $100,000 loan will be considered a Section 32 loan if the points and fees are greater than
5% of the loan amount
Another name for a due on sale clause that gives the lender certain rights when property ownership is transferred.
Alienation clause
Laura's name is on the National Do Not Call Registry. At what point after she closes a loan with ABC Mortgage must ABC stop contacting her to solicit new business?
after 18 months
If an appraiser intentionally underestimates an appraisal value for the purpose of keeping the values in that area low, that appraisal would be violating which law?
TILA
Bill is attempting to get licensed in Texas, which has adopted UST. He has already taken and passed the retired 100-question National Test Component, but never passed the Texas State Test Component, having failed three times prior to April 1, 2014. What are his requirements after April 1, 2014?
A. Bill must take the Texas State exam only.
B. Bill must take and pass the National Test with Uniform State Content and the Texas State exam.
C. Bill must take and pass the National Test with Uniform State Content.
D. Bill must take and pass the Stand Alone UST only.
C
Which act provides a specific definition of a nontraditional loan?
Secure and Fair Enforcement Mortgage Licensing Act
In a refinance transaction closing, hypothecation occurs. This is described as ___________________________.
using property as collateral without surrendering use or possession of it.
What is the Notice to Home Loan Applicant?
What law requires that this disclosure is provided to an applicant?
Triggered by obtaining a credit score in connection with a mortgage application. It has two sections:
1. Your Credit Score
2. Understanding Your Credit Score
The difference between actual fraud and constructive fraud is that actual fraud is _______.
intentional
A loan modification refers to
changing the terms of an existing loan