NAFCU NCCO ExAm 1 QUEstiONs with
COrrECt ANswErs LAtEst VErsiON
2025 GrAdEd A+
◉What are the requirements for Credit unions to use coupon books
intead of periodic statements. . Answer: Only applied to Fixed
mortgages
require to have ammount due, amount of any late fees, the date late fees
are charged, the due date
◉Are there any types of loans exempt from periodic statement
requirements? If so what types of loans are exempt? . Answer: Reverse
mortgages, HELOC, timeshare loans, and small services
◉What is the timing of the notice requirements for force-placed
insurance? . Answer: First notice - send at least 45 days before charging
the member
reminder notice - sent 30 days before the first notice
renewal notice - sent 45 days before renewal
◉When is a credit union considered a "small servicer"?
, What are some of the provisions that would still apply to "small
servicers"? What are some provions that do not apply to "small
servicers" . Answer: A servicer that, together with any affiliates, services
5,000 or fewer mortgage loans and the servicers it eh creditor or
assignee for all of them.
Not exempt from ARM notices, prompt crediting of payments,
responding to QWRs, escrow account servicing requirements
Extempt from general servicing procedures and requirements, periodic
statements, prohibition on purchasing force placed insurance, majority
of rules for servicing delinquent mortgages
◉What is an error for the purposes of the error resolution rule? .
Answer: No exact defintion
but regulation provides example such as
- failure to accept a conforming payment
- failure to apply payment
- not related orgination or underwriting
◉What is the difference between information request and an error
notice? . Answer: Information request does not require notice of error.
◉What is a periodic payment? How much servicers handle these
payments? . Answer: Include the amount neccesary to pay principal
interest and any applicable escrow
COrrECt ANswErs LAtEst VErsiON
2025 GrAdEd A+
◉What are the requirements for Credit unions to use coupon books
intead of periodic statements. . Answer: Only applied to Fixed
mortgages
require to have ammount due, amount of any late fees, the date late fees
are charged, the due date
◉Are there any types of loans exempt from periodic statement
requirements? If so what types of loans are exempt? . Answer: Reverse
mortgages, HELOC, timeshare loans, and small services
◉What is the timing of the notice requirements for force-placed
insurance? . Answer: First notice - send at least 45 days before charging
the member
reminder notice - sent 30 days before the first notice
renewal notice - sent 45 days before renewal
◉When is a credit union considered a "small servicer"?
, What are some of the provisions that would still apply to "small
servicers"? What are some provions that do not apply to "small
servicers" . Answer: A servicer that, together with any affiliates, services
5,000 or fewer mortgage loans and the servicers it eh creditor or
assignee for all of them.
Not exempt from ARM notices, prompt crediting of payments,
responding to QWRs, escrow account servicing requirements
Extempt from general servicing procedures and requirements, periodic
statements, prohibition on purchasing force placed insurance, majority
of rules for servicing delinquent mortgages
◉What is an error for the purposes of the error resolution rule? .
Answer: No exact defintion
but regulation provides example such as
- failure to accept a conforming payment
- failure to apply payment
- not related orgination or underwriting
◉What is the difference between information request and an error
notice? . Answer: Information request does not require notice of error.
◉What is a periodic payment? How much servicers handle these
payments? . Answer: Include the amount neccesary to pay principal
interest and any applicable escrow
