Show:
Violations
Ethics
Laws
General
Disclosures
100
If Nader is making an advertisement for his new loan products, but forgets about the "trigger" terms and what they require before he publishes them. What did Nader violate and what could be his penalty?
What is TILA/Regulation Z and he could be fined $400-$4000
100
Chris receives a call from a customer in Tennessee requesting a loan, but cannot originate the loan because he isn't licensed by that state. He decides to transfer the client to his friend and coworker TJ, who is licensed in Tennessee and receives a thing of value from TJ as a thank you for the business. Is this a violation of RESPA?
What is NO!
100
Lenders that are allowed to require answers to questions pertaining to protected classes.
What is non-profit or charities
100
What would happen if the payments were interest and an inadequate amount of interest? (what would it be called)
What is Partial Amortization
100
Corey wants to review his documents from his recent refinance to make sure he is satisfied with this loan, what are TWO ways he can review the documents before getting refinanced?
What is request to receive the HUD-1a the day before the close to check the actual costs & use the right of rescission period to review the documents
200
If Brian Finland, known as "super salesman" around Quicken Loans, receives a notice stating he owed $32,000 for two violations, what did he most likely violate?
What is the Do Not Call Registry
200
Sarah filed an "fraud alert" with TransUnion on her credit report, but later had to dispute charges found on her other credit reports that were pulled after she posted the alert. What happend, was there a violation, and under what Act?
What is TransUnion did not communicate to the other CRA's the "fraud alert," they violated the rules under FCRA that require the CRA's to communicate when one dispute or alert is filed with the other.
200
What assists in ECOA catching it's violators and how?
What is Home Mortgage Disclosure Act (HMDA- Regulation C) It detects patterns of discrimination
200
What kind of loan isn't backed by Ginnie Mae, but is traditional?
What is Conventional
200
What disclosure has the 15/15/60 Rule and what Regulation is it under?
What is the Mortgage Servicing Transfer Disclosure (MSTD) under Regulation X
300
What did Michael, a Loan Orginator, violate if there is suit against him with no limitations?
What is Section 6 (individual) OR Section 10 intentional
300
Sean (a lender) and Todd (a broker) are friends and decide to go into the Mortgage Industry together. Todd is fairly new to the business world so Sean helps him out and gives him his old fax machine to help his new business grow and Rob (a not-so-smart competing lender) sees this and decides to give Todd his lucky rubber ducky in exchange for priority in his business referrals, who is in violation of RESPA/Regulation X?
What is everyone is in trouble! Have fun in prison for 1 year unless you pay the $10,000 fine!
300
In HOEPA, what is not allowed to exceed 8% or $592? And what are two examples?
What is Points and fees: clsoing agents fees, broker fees, 3rd party fees, other insurance products such as credit life.
300
What if Sam decided one day that she is full of patriotic pride and just needs to show it! After much thought she decides to enlist in the Army and help with the War efforts. What Act helps Sam protect her Identity while she is away, and how?
What is FACTA with the Red Flag Rules, offers the "Active Duty" alert on their credit report
300
Izl thought she had amazing credit. She maxes out her credit cards almost every month and makes most of her payments, so she was surprised when she received a Notice of Adverse Action from her lender after applying for a loan. With that notice was an Adverse Action form detailing instructions on how to receive a free copy of the report the lender used to disqualify her. What law(s) disclosed the notice and redeemable credit report information, and within how many days?
What is ECOA disclosed the Notice of Action taken, FCRA disclosed the form detailing instructions on how to redeem a copy of that report. Within 30 days of application.
400
Two crooks, we will just call them Brian and Corey, decide they want to run a mortgage fraud scheme one day while golfing. The two purchase a run down house and decide to flip it. They make the house cosmetically appealing and ignore all of the real repairs needed for the house. Corey decides to play the appriasor, and Brian plays the seller. What report does Corey have to fill out and what could their penalty be?
What is 1004 or URAR, and mortgage fraud is a penalty of 1,000,000 and/or 30 years in federal prison
400
Nate, a preditory lender, has a very faithful client who is blind and feels his face everytime he meets her. He loves visiting her because she is wilingl to refinance into anything he offers. The client has been refinanced a number of times and raising her LTV without realizing it. What has Nate been doing in this situation?
What is equity stripping
400
What is URLA and what does it fall under? If you accept one, what are you required to do?
What is URLA is the application or 1003, it is under all loans. If you accept one, you are required to send out the proper disclosures.
400
Ann finally found her dream home at only $593,175! She has amazing qualifications and found a seller willing to put in the max 3% concessions. After some shopping, she arranges to purchase it with a 30 year fixed loan at 4.99% and a loan amount of $533,850. After she puts the required 5% down, paid the closing costs and signed the papers she could not wait to move in! (and throw a house party of course) What kind of loan did Ann get?
What is Conventional/Non-Conforming
400
What disclosure allows clients to receive a copy of the appraisal? How long do they have, and when does that start? What Act is it under?
What is Notice of Right to Receive Appraisal, they have 90 days from when they receive the notice. It is under ECOA
500
Sean decides he wants to live peacefully on an island. To get there he is going to need a lot of cash. Sean figures if he finds an island with no extradition laws he can do what ever it takes to get the money and run. He figures he has about 34% accessible equity in his house, valued at $120,000, and decides to refinance his current mortgage with two seperate lenders to get double the cash out. If he is successful, how much money will he have to run away with, what is the term for what he did, and what could be his punishment?
What is $81,600, shotgunning, and 1,000,000 and/or 30 years in federal prison
500
You receive your license from AZ, FL, CA, and TX and decide to go out and celebrate. Caught up in the excitement you decide it is ok to drink and drive, but unfortunately you get caught and decide not to tell your banker licensing team or your states hoping they just wont find out. What is the worst case scenario for your career?
What is the DUI was extreme and filed as a felony, you get your licensed revoked and have to work at Wally World.
500
What law is maintained by CSBS & AARMR? What does it do, require and what law is it found under?
What is SAFE Act, requires loan originators to be licensed or registered, designed to enhance consumer protection and reduce fraud. Found under HERA- housing and economic recovery act.
500
What has a maximum origination fee of 2% and is not to exceed $6,000, what kind of loan is it?
What is HECM, reverse mortgage
500
What disclosure has the APR and finance charges, how much can they vary before re-disclosing. When is it due, when is the re-disclosure due. What is the name of the Act and Regulation, who regulates it, who enforces it and what could your penalty be for not complying?
What is TIL disclosure, 1/8% or $100, due 3 days of application, 7 days before closing, re-disclosure due no later than 3 days before application. Under TILA or Regulation Z, regulated by the board, enforced by FTC and penalty of $400-$4000 for not complying