Federal Mortgage Related Laws

  1. Real Estate Settlement Procedures Act (RESPA) year of enactment?
  2. RESPA's other name?
    Regulation X
  3. Who oversee's RESPA?
  4. What kinds of properties are covered by RESPA?
    • - 1-4 Family
    • -Townhomes
    • -Manufactured Homes
    • -Condos
  5. What pieces of information does an application include according to RESPA?
    • Property Address
    • Estimated Value
    • Name
    • SSN
    • Income
    • Loan Amount
  6. True or False: Secured parcels of 25 acres or more, whether or not the property is improved.
  7. Originators must provide the borrower with a copy of the Special Information Booklet no later than _______after the application is received.
    3 business days
  8. A Controlled Business Arrangement disclosure is used when the originator owns more than ___________ of other services invloved in the transaction.
  9. According to RESPA these disclosures are due in 3 business days
    • -Affiliated Business Arrangement
    • -GFE (Good Faith Estimate)
    • -Special Info Booklet
    • -Servicing Transfer Disclosure
    • -Provider Relationship
  10. Any excess of $100 or more must be returned to the borrowers after an annual escrow statement
    falsa...$50 or more
  11. The lender must perform an escrow sccount analysis once during the year. true or false
  12. Under what section does RESPA talk about kickbacks?
    Section 8
  13. The cushion must be no greater than _______ of the estimated total annual disbursement from the escrow account, and no more than ________ monthly.
  14. The HUD-1 is due to the borrower ?
    One business day before settlement
  15. Contrustion loans and temporary are exempt from RESPA. True or False
  16. The loan servicer must notify the borrower ___ days before the effective date of the loan transfer.As long as the borrower makes timely payments to the former service within ____ days of the loan transfer; the borrower can not be penalized.
    15, 60
  17. Equal Credit Opportunity Act (Regulation B) was passed ______ and ammended in _______.
  18. The other name of ECOA is?
    Regulation B
  19. Regulation B is overseen by:
    Federal Reserve Board
  20. ECOA is enforced by....
    • Brokers: FTC (Federal Trade Commission)
    • Bankers: OCC (Office Comptroller of Currency)
  21. Regulation B does not discriminate against the following...
    • -Race
    • -Color
    • -Religion
    • -National Origin
    • -Sex
    • -Marital Status
    • -Age (Provided that the applicant has the capacity to enter a binding contract)
    • -Receipt of Income from a public assistance program
    • -the good faith exercise of any right under the Consumer Credit Protection Act
  22. What is the 30-60-30 rule for ECOA on applications of credit.
    • -Lender has 30 days after receipt of completed application to notify of action
    • -The applicant has 60 days to request a reason of denial
    • -The Lender then has 30 days to disclose requested information
  23. ______________ is never reported on the Adverse Action Notice (Notice that states what the action of lender after application has been received)
    Credit Score
  24. When multiple applicants are involved, the adverse action notice need only to be given to the ___________ applicant.
  25. According to ECOA, the creditor shall mail or deliver a copy of the appraisal report promptly general within _______ days after the creditor receives an applicant's request, receives the report or receives the reinbursement from the applicant for the report; whichever is last to occur.
  26. ECOA penalties are as follows...
    • Individual: $10,000
    • Class Action: 1% of Networth or $500,000 (whichever is less)
  27. According to ECOA, if the applicant chooses not to supply information about their race, national origin and sex...the originator must fill in the information on the basis of:
    -Visual observation and surname
  28. According to ECOA, an originator must keep records for _______ after an adverse action or notice of incompleteness.
    25 months
  29. The reason for ECOA is to...
    ensure that ALL consumers are given equal chance to obtain credit.
  30. RESPA is...
    an overall consumer protection statute
  31. Truth in Lending Act was designed to....
    protect consumers in credit transactions by requiring CLEAR disclosure of key terms of the lending arrangements and all costs.
  32. ANother name for TILA is...
    Regulation Z
  33. 4 things ECOA exempts from discrimination
    • -Immigration Status
    • -Family Composition (Size)
    • -Sexual Orientation
    • -Disability
  34. A notice on Incompletness is also known as...
    "10 day letter" but not limited to those days
  35. According to ECOA, what is the most time a borrower has to request an appraisal?
    90 days for action taken on the application
  36. TILA disclosure contains 5 primary boxes:
    • 1. APR (Annual Percentage Rate)
    • 2. Finance Charge
    • 3. Amount Financed
    • 4. Total of Payments
    • 5. Payment Schedule
  37. The APR change must not be above or below _______ or _____ acording to TILA.
    .125% or 1/8
  38. CHARM (Consumer Handbook on Adjustable Rate Mortgages) is published by
    Federal Reserve Board and Federal Home Loan Bank Board
  39. Who enforces TILA?
    Board of Governors of the Federal Reserve System
  40. Who oversees TILA?
    Consumer Credit Protection Act
  41. Who sets loan limits for FHA?
    Federal Housing Finance Agency
  42. Rights or Recission includes Saturdays and not Sundays or Federal Holidays. True or False
  43. Three C's of Credit:
    • -Capacity
    • -Credit Reputation
    • -Collateral
  44. FHA is NOT a lender..true or false
    True..FHA only insures the loan
  45. Property Flipping is...
    Property when purchased is falsely highly appraised at a higher value, and quickly sold...
  46. A Straw buyer is..
    a person used to by the property in order to conceal the actual owner.
  47. the best indicator of value is the __________ approach
  48. the APR disclose must be within the allowable tolerance of:
    .0125 %
  49. Excessive selling/lending for the purpose of generating fees and commissions is called:
  50. When the monthly payment is not sufficient to cover the actual interest owed and the interest is added to the ending loan balance, is called:
    Negative Ammortization
  51. FACTA is the one reponsible for "Red Flags" True or False
  52. Gramm-Leach-Bliley Act must provide _______ notice
  53. TILA is Title 1 of:
    the CCPA
  54. FHA sellers are permitted to provide seller concencions up to _____ of the sales price
Card Set
Federal Mortgage Related Laws
Laws that are covered in the NMLS test