CUCE - MORTGAGE LENDING REGULATIONS
NEW UPDATE WITH COMPLETE SOLUTION
Variable rate disclosure scope? - CORRECT ANSWER - ARMs with a term of greater
than one year secured by the borrowers principal dwelling
When is a variable rate disclosure delivered? - CORRECT ANSWER - At Application
Consumer handbook and adjustable rate mortgages scope? - CORRECT ANSWER -
ARMs with a term of greater than one year secured by the borrowers principal dwelling.
When is a consumer handbook on adjustable rate mortgages delivered? - CORRECT
ANSWER - At Application
What is the definition of within three business days of application? - CORRECT ANSWER
- Any day in which the credit unions offices are open for carrying on substantially all of its
business functions.
What is the definition of no later than seven business days before closing? - CORRECT
ANSWER - All calendar days except Sundays and legal public holidays.
What constitutes an application? - CORRECT ANSWER - Applicants name, applicants
income, applicant social security number, property address, estimated value of the
property, loan amount
What is the zero tolerance good faith level? - CORRECT ANSWER - Fees paid to the
credit union or an affiliate, fees paid to a third-party if the member was not permitted to
shop for a provider, transfer taxes
What is a 10% good faith tolerance level? - CORRECT ANSWER - Recording fees, fees
paid to a third-party if a member is permitted to shop for a provider and select one from
the credit unions written list.
The sum total of all settlement charges in this category may increase by up to 10%
between application and closing.
What is a good faith unlimited tolerance level? - CORRECT ANSWER - Prepaid interest,
property insurance premiums, amounts placed into escrow; fees paid to a third-party if
, the member was permitted to shop for a provider and select one on the credit unions
written list; fees paid to a third-party for service is not required by the credit union.
What are the three good faith tolerance levels? - CORRECT ANSWER - Zero tolerance;
10% tolerance; unlimited tolerance.
What is the scope of the written list of service providers? - CORRECT ANSWER - If the
applicant is permitted to shop for a settlement service.
What is the delivery timeframe for written list of service providers? - CORRECT ANSWER
- Within three business days of application.
What are the rules for issuing a revised loan estimate? - CORRECT ANSWER - Must
reflect the cost of the time of the disclosure; must be placed in the mail within three
business days of the credit union learning of the changed circumstance; must be received
no later than four business days before closing.
What is the scope of a mortgage tool kit? - CORRECT ANSWER - Purchase money
mortgage loans.
What is the delivery timeframe for a mortgage tool kit? - CORRECT ANSWER - Within
three business days of application.
What is the scope of the homeownership counseling notice? - CORRECT ANSWER - All
federally related mortgage loans, including HELOCs but excludes reverse mortgages and
loans for timeshares.
What is the delivery timeframe for a home ownership counseling notice? - CORRECT
ANSWER - Within three business days of application.
What is the scope of an appraisal notice? - CORRECT ANSWER - First lean loan secured
by dwelling.
What is the delivery timeframe for an appraisal notice? - CORRECT ANSWER - Within
three business days of application.
What is the scope for ability to repay / reg b? - CORRECT ANSWER - All closed-end
consumer credit transaction secured by a dwelling. Exceptions: HELOC; temporary or
bridge loans with the term of a 12 months or less; loan secured by timeshare; reverse
mortgages; construction loans
NEW UPDATE WITH COMPLETE SOLUTION
Variable rate disclosure scope? - CORRECT ANSWER - ARMs with a term of greater
than one year secured by the borrowers principal dwelling
When is a variable rate disclosure delivered? - CORRECT ANSWER - At Application
Consumer handbook and adjustable rate mortgages scope? - CORRECT ANSWER -
ARMs with a term of greater than one year secured by the borrowers principal dwelling.
When is a consumer handbook on adjustable rate mortgages delivered? - CORRECT
ANSWER - At Application
What is the definition of within three business days of application? - CORRECT ANSWER
- Any day in which the credit unions offices are open for carrying on substantially all of its
business functions.
What is the definition of no later than seven business days before closing? - CORRECT
ANSWER - All calendar days except Sundays and legal public holidays.
What constitutes an application? - CORRECT ANSWER - Applicants name, applicants
income, applicant social security number, property address, estimated value of the
property, loan amount
What is the zero tolerance good faith level? - CORRECT ANSWER - Fees paid to the
credit union or an affiliate, fees paid to a third-party if the member was not permitted to
shop for a provider, transfer taxes
What is a 10% good faith tolerance level? - CORRECT ANSWER - Recording fees, fees
paid to a third-party if a member is permitted to shop for a provider and select one from
the credit unions written list.
The sum total of all settlement charges in this category may increase by up to 10%
between application and closing.
What is a good faith unlimited tolerance level? - CORRECT ANSWER - Prepaid interest,
property insurance premiums, amounts placed into escrow; fees paid to a third-party if
, the member was permitted to shop for a provider and select one on the credit unions
written list; fees paid to a third-party for service is not required by the credit union.
What are the three good faith tolerance levels? - CORRECT ANSWER - Zero tolerance;
10% tolerance; unlimited tolerance.
What is the scope of the written list of service providers? - CORRECT ANSWER - If the
applicant is permitted to shop for a settlement service.
What is the delivery timeframe for written list of service providers? - CORRECT ANSWER
- Within three business days of application.
What are the rules for issuing a revised loan estimate? - CORRECT ANSWER - Must
reflect the cost of the time of the disclosure; must be placed in the mail within three
business days of the credit union learning of the changed circumstance; must be received
no later than four business days before closing.
What is the scope of a mortgage tool kit? - CORRECT ANSWER - Purchase money
mortgage loans.
What is the delivery timeframe for a mortgage tool kit? - CORRECT ANSWER - Within
three business days of application.
What is the scope of the homeownership counseling notice? - CORRECT ANSWER - All
federally related mortgage loans, including HELOCs but excludes reverse mortgages and
loans for timeshares.
What is the delivery timeframe for a home ownership counseling notice? - CORRECT
ANSWER - Within three business days of application.
What is the scope of an appraisal notice? - CORRECT ANSWER - First lean loan secured
by dwelling.
What is the delivery timeframe for an appraisal notice? - CORRECT ANSWER - Within
three business days of application.
What is the scope for ability to repay / reg b? - CORRECT ANSWER - All closed-end
consumer credit transaction secured by a dwelling. Exceptions: HELOC; temporary or
bridge loans with the term of a 12 months or less; loan secured by timeshare; reverse
mortgages; construction loans
