Federal Mortgage-Related Laws
The federal regulation that limits the length of time that adverse collection information may appear in a consumer's credit report.
Regulation V (Fair Credit Reporting Act - FCRA)
In a mortgage loan, is the borrower the mortgagee or mortgagor?
mortgagor
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
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
More commonly known as "Title V of the Housing and Economic Recovery Act of 2008".
SAFE Act
A conventional loan not backed by government insurance is often referred to as this.
Conforming Loan
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
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. What is Tom doing wrong?
Using a bait-and-switch tactic
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
A $100,000 loan will be considered a Section 32 loan if the total lender/broker points and fees are greater than $_______.
$5,000
5% of the loan amount
This is described as 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.
fully amortized
The final step in loan origination when funds and ownership is transferred.
Closing/Settlement
A for-profit MLO who claims to be a "counselor" in an ad about loan modification would be in violation of what 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
This federal law established a specific definition of a Mortgage Loan Originator.
SAFE Act
The clause that gives the lender certain rights when property ownership is transferred (another name for the due-on-sale clause).
Alienation clause
This process involves verifying income, assets, debts, and property details before loan approval.
Underwriting
The difference between actual fraud and constructive fraud is that actual fraud is___.
Intentional
Changing the terms of an existing loan
This federal law established the CFPB as the main regulator of consumer mortgage protections.
Dodd-Frank Act
This occurs during a refinance transaction and is described as using the property as collateral without surrendering use or possession of it.
Hypothecation
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
States must conduct background checks on applicants, including these two reports.
Credit reports & criminal history report