Federal Mortgage Related Laws
For the purposes of rescinding a loan transaction, "business days" includes every day of the week except:
Sundays and Federal Holidays
What is the purpose of Reg B...What is Reg B?
To prohibit discrimination in credit transactions- ECOA Equal Credit Opportunity Act
Why are FHA loans beneficial to lenders?
They are insured by the government.
Appraisers use what method when determining value for conforming loans?
Sale Comparison Approach
What is Yield Spread Premium?
An amount paid by the lender to a third party originator for locking a borrowers interest rate at a rare higher than par.
Which law created the requirement for reporting detailed information about loan transactions and demographic information to prove they are not discriminating?
HMDA (Home Mortgage Disclosure Act)
Kickbacks are not allowed VIA what law?
What is defined as a loan that exceeds fannie and freddie's max loan limits
Non-Conforming Loan
What is the definition of a "point"
1% of the loan amount
Unethical practices in the morgage industry have been blamed for what?
Housing bubble bursting, Rising foreclosure rates, and Mortgage fraud.
NOT- Subprime meltdown
An initial servicing transfer notice must be provided to a borrower, how many days prior to the transfer of the servicing?
When calculating finance charges in compliance with TILA, which is not included:
Settlement Fees
Broker Fees
PMI- Private Mortgage Insurance premium
Appraisal Fees
Appraisal Fees
A subordinate lien is also called a
Junior Lien
Comparable properties for an appraisal should be located within ... of the subject property
1 mile
Amendments to which fed law created requirements for the verification and documentation of a borrowers repayment ability?
HOEPA - Homeownership and Equity Protection Act
A mortgage professional may face what fine and time in prison for engaging in illegal acceptance of referral fees?
10,000 dollars and up to 1 year in prison.
According to Fair Lending Laws, you are allowed to ask for...
Religion
Race
If they will stop working once they have children
If they plan to have more than one child
Race
Definition of Margin:
Amount above the index that an interest rate can adjust for an ARM
Which transaction must the HUD settlement cost information booklet be provided?
A new home purchase
Advertising an attractive interest rate which a mortgage professional is not at liberty to offer is a major ethical offense and violation of what fed law?
Truth In Lending - Reg Z
Under the TILA act, a mortgage professional is required to disclose what to the borrower? What is TILA?
Terms of the credit transaction- Truth In Lending Act
What is the cost of credit expressed as a dollar amount?
Finance Charge
What does a lender use to determine if a borrower will be financially able to meet the demands of loan repayment?
DTI- Existing debt versus income
The Market Conditions Addendum required a conjunction with the Uniform Residential Appraisal Report does not include...
Description of the property and improvements.
What two regulations are aimed at preserving the confidentiality of consumer personal financial information?
Federal Trade Commission's Disposal Rule & Gramm-Leach-Bliley Act Safeguards Rule