NCCO EXAM 3
A member has submitted a direct dispute to the credit union regarding
her performance on a credit card account. Which of the following
accurately describes the credit union's obligations?
a. The credit union does not have any obligations regarding the direct
dispute because disputes relating to a member's performance on an
account are not covered by the rule.
b. The credit union must complete its investigation of the dispute
within 10 days and rep01t the result's of the investigation to the
member.
c. The credit union must complete its investigation of the dispute
within 30 days, report the results of the investigation to the member
and notify consumer repotting agencies if the investigation reveals
information reported was inaccurate.
d. The credit union must complete its investigation of the dispute
within 30 days and report the results of the investigation to the
member. Notice to the consumer reporting agencies - ANSWERS-c.
The credit union must complete its investigation of the dispute within
30 days, report the results of the investigation to the member and
notify consumer reporting agencies if the investigation reveals
information reported was inaccurate.
Which statements are true under the Regulation Z qualification and
screening requirements for mortgage loan originators? Choose the
best answer.
,a. The credit union can obtain a criminal background check on an
individual loan originator by reviewing any criminal background
check it receives upon compliance with the registration requirement in
the NMLSR.
b. An individual loan originator may begin originating loans as long
as the loan originator organization has begun the qualifications and
screening process.
c. The credit union may obtain information on past administrative,
civil, or criminal findings from the individual loan originator.
d. a and c only
e. All of the above - ANSWERS-d. a and c only
Regulation Z requires a credit union to provide a member with an
escrow cancellation notice, when must this notice be provided?
a. The notice must be delivered 30 days before the escrow account is
cancelled.
b. The notice must be sent at least 3 days before the escrow account is
cancelled.
c. If the member requests the cancellation, the notice must be
provided no later than 3 business days before the escrow account is
closed. If the credit union initiates the cancellation, the notice must be
provided at least 30 business days before the escrow account is
closed.
d. The notice must be provided at least 30 business days before the
escrow account is closed. - ANSWERS-c. If the member requests the
cancellation, the notice must be provided no later than 3 business days
before the escrow account is closed. If the credit union initiates the
, cancellation, the notice must be provided at least 30 business days
before the escrow account is closed.
A member can cancel a private education loan even after the credit
union sends final disclosures and the member accepts the loan.
a. True, a member can cancel the loan until midnight on the third
business day after receiving the final disclosures.
b. False, this ability to cancel only applies to a consolidation of
existing private education loans. - ANSWERS-a. True, a member can
cancel the loan until midnight on the third business day after receiving
the final disclosures.
A credit union must obtain a court order before repossessing an
automobile or foreclosing on a mortgage from a servicemember.
Choose the best answer.
a. True, the credit union should seek legal help to navigate this
process.
b. False, this protection only applies to servicemembers who are
stationed outside of the United States.
c. False, the mortgage foreclosure protection only applies in states
where there is a requirement for judicial foreclosures. - ANSWERS-a.
True, the credit union should seek legal help to navigate this process.
If a credit union is advertising a promotional APR on an open-end
credit product, the credit union must also include information about
A member has submitted a direct dispute to the credit union regarding
her performance on a credit card account. Which of the following
accurately describes the credit union's obligations?
a. The credit union does not have any obligations regarding the direct
dispute because disputes relating to a member's performance on an
account are not covered by the rule.
b. The credit union must complete its investigation of the dispute
within 10 days and rep01t the result's of the investigation to the
member.
c. The credit union must complete its investigation of the dispute
within 30 days, report the results of the investigation to the member
and notify consumer repotting agencies if the investigation reveals
information reported was inaccurate.
d. The credit union must complete its investigation of the dispute
within 30 days and report the results of the investigation to the
member. Notice to the consumer reporting agencies - ANSWERS-c.
The credit union must complete its investigation of the dispute within
30 days, report the results of the investigation to the member and
notify consumer reporting agencies if the investigation reveals
information reported was inaccurate.
Which statements are true under the Regulation Z qualification and
screening requirements for mortgage loan originators? Choose the
best answer.
,a. The credit union can obtain a criminal background check on an
individual loan originator by reviewing any criminal background
check it receives upon compliance with the registration requirement in
the NMLSR.
b. An individual loan originator may begin originating loans as long
as the loan originator organization has begun the qualifications and
screening process.
c. The credit union may obtain information on past administrative,
civil, or criminal findings from the individual loan originator.
d. a and c only
e. All of the above - ANSWERS-d. a and c only
Regulation Z requires a credit union to provide a member with an
escrow cancellation notice, when must this notice be provided?
a. The notice must be delivered 30 days before the escrow account is
cancelled.
b. The notice must be sent at least 3 days before the escrow account is
cancelled.
c. If the member requests the cancellation, the notice must be
provided no later than 3 business days before the escrow account is
closed. If the credit union initiates the cancellation, the notice must be
provided at least 30 business days before the escrow account is
closed.
d. The notice must be provided at least 30 business days before the
escrow account is closed. - ANSWERS-c. If the member requests the
cancellation, the notice must be provided no later than 3 business days
before the escrow account is closed. If the credit union initiates the
, cancellation, the notice must be provided at least 30 business days
before the escrow account is closed.
A member can cancel a private education loan even after the credit
union sends final disclosures and the member accepts the loan.
a. True, a member can cancel the loan until midnight on the third
business day after receiving the final disclosures.
b. False, this ability to cancel only applies to a consolidation of
existing private education loans. - ANSWERS-a. True, a member can
cancel the loan until midnight on the third business day after receiving
the final disclosures.
A credit union must obtain a court order before repossessing an
automobile or foreclosing on a mortgage from a servicemember.
Choose the best answer.
a. True, the credit union should seek legal help to navigate this
process.
b. False, this protection only applies to servicemembers who are
stationed outside of the United States.
c. False, the mortgage foreclosure protection only applies in states
where there is a requirement for judicial foreclosures. - ANSWERS-a.
True, the credit union should seek legal help to navigate this process.
If a credit union is advertising a promotional APR on an open-end
credit product, the credit union must also include information about
