FED
LAW
LAW
The Fair Housing Act states that discrimination in housing is not allowed based on several factors, including familial status. What does someone's familial status refer to?
Pregnancy/having children under 18
years old
What is a VA IRRRL?
Interest Rate Reduction Refinance Loan
What is the guarantee fee required by the Single Family Housing Guaranteed Loan Program?
1%
What is builder bail-out fraud?
A builder gives undisclosed payment assistance to buyers to sell properties quickly
What is the primary purpose of the SAFE Mortgage Licensing Act?
To establish minimum standards for the licensing and registration of state-licensed mortgage loan originators and to provide a comprehensive licensing system
The regulatory authority for the HPA
CFPB
What is the name of the automated underwriting system is used for USDA loans?
Guaranteed Underwriting System
What is the tolerance for the increase in the APR from the Loan Estimate to the Closing Disclosure on a TILA-governed transaction for a fixed rate mortgage?
0.125%
An MLO misleads a borrower to choose a loan that yields a higher commission, rather than one better suited for the borrower. This is an example of:
Predatory Lending
Which federal agency is responsible for overseeing the SAFE Mortgage Licensing Act?
CFPB
According to Regulation X, how many organizations must be listed on the Homeownership Counseling Organizations List?
10
This is where investors buy and sell securities they already own.
Secondary Market
Peyton is getting a conventional loan and making a 20% down payment. She is trying to keep track of all her closing costs. Which type of insurance policy will Peyton be required to pay for?
Lenders Title Insurance
Which federal regulation and section # prohibits kickbacks and referral fees between MLOs and third parties?
Reg X, RESPA, Section 8
What is the minimum requirement for pre-licensing education for mortgage loan originators? (How many hours per category)
20 hours of NMLS-approved pre-licensing education
MLO – 27,
Fed – 24
G – 20
Ethic – 18
USC - 11
Shortly after closing on her loan, Peyton Lewis noticed her Closing Disclosure listed her name as Lewis Peyton. She quickly contacted her lender to ensure this would be corrected. How long does the lender have to make this correction?
60 days from closing
The estoppel clause is:
A clause in a contract where a person acknowledges they understand what they are signing
How is a monthly interest only payment calculated?
Multiply the loan amount by the interest rate and divide by 12
Most fraud for profit is initiated by:
The MLO
Who regulates the NMLS?
State Regulatory Registry
Owen is refinancing into an ARM. What disclosures will he receive?
LE, CHARM, CD, MSDS
When a real estate agent does a valuation on a home using a similar process to an appraisal.
Broker Price Opinion
What transactions are exempt from receiving the Homeownership Counseling Organizations List disclosure under the law of RESPA?
Reverse Mortgages and timeshares
Which federal law defined and outlawed UDAAPs?
Dodd Frank Act of 2010
The State Model was written by
CSBS &
AARMR – American Association of Residential Mortgage Regulators