Federal Mortgage-Related Laws 2023-2024 Actual
Questions and Answers Complete
The penalties for paying or accepting an illegal referral fee are:
Fines of up to $10,000 and up to one year in prison
An annual escrow analysis is used to do which of the following?
Prevent escrow overages
The disclosure requirements of RESPA would apply to which of the following loans?
A loan to purchase a duplex and rehabilitate it into a single-family dwelling
You have taken a loan application from a customer with an excellent credit score. When
does ECOA require that you advise him about the status of his application?
Within 30 days
Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice?
His credit score
According to fair lending laws, which of the following may loan applicants be asked to
disclose for HMDA data collection purposes?
Their race
Finance charges always include which of the following?
Mortgage broker fee
Which of the following is not included in calculating the APR?
Escrow fees
The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of _______________ under TILA.
Trigger terms
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the
provisions specified under federal law, what is the first possible day the loan could
fund?
Saturday
HOEPA creates protections for high-cost loans under:
TILA
Subprime loans with interest rates that are not high enough to trigger protections under
HOEPA, but which are subject to some protections under Regulation Z are known as:
Higher-priced mortgage loans
Prepayment penalties for high-cost mortgages are:
Prohibited
XYZ Mortgage Company just mailed a Closing Disclosure to a consumer. The waiting
period prior to closing will begin:
The third business day after the Closing Disclosure is mailed
The mandatory waiting period between issuance of disclosures and consummation may
be waived:
If the consumer requests a waiver due to a bona fide financial emergency
, There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the
actual closing costs if the consumer is allowed to shop for his/her own settlement
service provider.
10%
In what area of the Loan Estimate would a borrower be able to see if their loan has a
balloon payment?
The "Loan Terms" table
The Loan Originator Compensation Rule is intended to discourage which of the
following practices?
Steering
The Loan Originator Compensation Rule defines compensation to include all of the
following, except:
Payments collected by a loan originator organization for services other than loan
origination services
Which of the following lending terms is not prohibited for a high-cost loan regulated
under HOEPA?
An adjustable interest rate
Lenders must report detailed information about loan transactions and demographic
information concerning borrowers. Which of the following laws creates that reporting
requirement?
HMDA
If an individual submits false information for the purposes of obtaining a federally-
covered loan, he/she could face:
A fine of up to $1,000,000 and imprisonment
Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI
when their loan balance is less than ____, or a lender may collect PMI until ____ loan-
to-value is reached.
80%; 78%
If a mortgage broker decides to use telemarketing to establish leads for loan origination,
which of the following should occur?
The broker should obtain access to the Do-Not-Call Registry
If a consumer opens an account online, the Gramm-Leach-Bliley Act states that what
period of time constitutes a "reasonable opportunity" to opt out of information sharing?
30 days
If a loan applicant chooses not to disclose his or her race on a loan application, what
recourse does a mortgage professional have?
Note that the applicant has declined to answer and select a race based on visual
observation
Under the Fair Credit Reporting Act, which of the following entities has the burden of
protecting a consumer's privacy when his/her credit information is being reported?
Credit reporting agency
The Do-Not-Call Implementation Act authorized the implementation and enforcement of:
The Do-Not-Call Registry
This involves conspiratorial involvement of mortgage professionals using the mortgage
market to benefit financially from criminal behavior.
Fraud for profit
Questions and Answers Complete
The penalties for paying or accepting an illegal referral fee are:
Fines of up to $10,000 and up to one year in prison
An annual escrow analysis is used to do which of the following?
Prevent escrow overages
The disclosure requirements of RESPA would apply to which of the following loans?
A loan to purchase a duplex and rehabilitate it into a single-family dwelling
You have taken a loan application from a customer with an excellent credit score. When
does ECOA require that you advise him about the status of his application?
Within 30 days
Mr. Jones's loan application has been denied and he is provided with an Adverse Action
Notice as required by ECOA. Which of the following pieces of information would not be
included on the notice?
His credit score
According to fair lending laws, which of the following may loan applicants be asked to
disclose for HMDA data collection purposes?
Their race
Finance charges always include which of the following?
Mortgage broker fee
Which of the following is not included in calculating the APR?
Escrow fees
The amount of the down payment, the amount of the finance charge, or the number of
payments needed are all examples of _______________ under TILA.
Trigger terms
A borrower has gone to settlement for a cash-out refinance on Tuesday for his principal
residence. His rescission period is over at midnight on Friday. According to the
provisions specified under federal law, what is the first possible day the loan could
fund?
Saturday
HOEPA creates protections for high-cost loans under:
TILA
Subprime loans with interest rates that are not high enough to trigger protections under
HOEPA, but which are subject to some protections under Regulation Z are known as:
Higher-priced mortgage loans
Prepayment penalties for high-cost mortgages are:
Prohibited
XYZ Mortgage Company just mailed a Closing Disclosure to a consumer. The waiting
period prior to closing will begin:
The third business day after the Closing Disclosure is mailed
The mandatory waiting period between issuance of disclosures and consummation may
be waived:
If the consumer requests a waiver due to a bona fide financial emergency
, There is a ____ accuracy tolerance for amounts stated on the Loan Estimate and the
actual closing costs if the consumer is allowed to shop for his/her own settlement
service provider.
10%
In what area of the Loan Estimate would a borrower be able to see if their loan has a
balloon payment?
The "Loan Terms" table
The Loan Originator Compensation Rule is intended to discourage which of the
following practices?
Steering
The Loan Originator Compensation Rule defines compensation to include all of the
following, except:
Payments collected by a loan originator organization for services other than loan
origination services
Which of the following lending terms is not prohibited for a high-cost loan regulated
under HOEPA?
An adjustable interest rate
Lenders must report detailed information about loan transactions and demographic
information concerning borrowers. Which of the following laws creates that reporting
requirement?
HMDA
If an individual submits false information for the purposes of obtaining a federally-
covered loan, he/she could face:
A fine of up to $1,000,000 and imprisonment
Under the Homeowners Protection Act, borrowers can request that lenders cancel PMI
when their loan balance is less than ____, or a lender may collect PMI until ____ loan-
to-value is reached.
80%; 78%
If a mortgage broker decides to use telemarketing to establish leads for loan origination,
which of the following should occur?
The broker should obtain access to the Do-Not-Call Registry
If a consumer opens an account online, the Gramm-Leach-Bliley Act states that what
period of time constitutes a "reasonable opportunity" to opt out of information sharing?
30 days
If a loan applicant chooses not to disclose his or her race on a loan application, what
recourse does a mortgage professional have?
Note that the applicant has declined to answer and select a race based on visual
observation
Under the Fair Credit Reporting Act, which of the following entities has the burden of
protecting a consumer's privacy when his/her credit information is being reported?
Credit reporting agency
The Do-Not-Call Implementation Act authorized the implementation and enforcement of:
The Do-Not-Call Registry
This involves conspiratorial involvement of mortgage professionals using the mortgage
market to benefit financially from criminal behavior.
Fraud for profit
