NCCCO Exam 3 | Study Guide & Practice Questions
If a credit union is advertising a promotional APR on an open-end credit product, the credit union must
also include information about when the promotional rate ends and the APR that will apply after the
end of the promotional period.
a. True, and if the promotional rate is at the opening of a new account the credit union must use the
term "introductory" or "intro" immediately in front of the promotional APR.
b. True, but this requirement only applies to home equity lines of credit (HELOCs).
c. False, this requirement only applies if the credit union uses the term "fixed" in the advertisement.
d. False, the credit union only needs to include this information on internet advertisements. - (answer)a.
True, and if the promotional rate is at the opening of a new account the credit union must use the term
"introductory" or "intro" immediately in front of the promotional APR.
Lenders are required to provide a homeownership counseling disclosure, listing ten HUD approved
counseling organizations in order of proximity to the borrower's current zip code, to applicants for
which of the following types of federally-related mortgage loans? Choose the best answer.
a. Purchase-money mortgages
b. Refinances
c. Closed-end home equity loans
d. Home equity lines of credit (HELOCs)
e. All of the above - (answer)e. All of the above
A member applied for a $3000 personal line of credit. The credit union wants to counteroffer the
member with a $1500 line of credit. To meet its Regulation B notification requirements, the credit
union:
a. Must send the member an adverse action notice, which cannot be combined with the counteroffer.
b. May send the member an adverse action notice combined with the counteroffer, but if the member
does not accept or does not respond to the counteroffer, the credit union must send another adverse
action notice.
,NCCCO Exam 3 | Study Guide & Practice Questions
c. May send the member an adverse action notice combined with the counteroffer, and if the member
does not accept or does not respond to the counteroffer, the credit union does not need to send
another adverse action notice.
d. Must send the member an adverse action notice with all counteroffers. - (answer)c. May send the
member an adverse action notice combined with the counteroffer, and if the member does not accept
or does not respond to the counteroffer, the credit union does not need to send another adverse action
notice.
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 - (answer)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.
, NCCCO Exam 3 | Study Guide & Practice Questions
d. a and c only
e. All of the above - (answer)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. -
(answer)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. -
(answer)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. - (answer)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 when the promotional rate ends and the APR that will apply after the
end of the promotional period.
a. True, and if the promotional rate is at the opening of a new account the credit union must use the
term "introductory" or "intro" immediately in front of the promotional APR.
b. True, but this requirement only applies to home equity lines of credit (HELOCs).
c. False, this requirement only applies if the credit union uses the term "fixed" in the advertisement.
d. False, the credit union only needs to include this information on internet advertisements. - (answer)a.
True, and if the promotional rate is at the opening of a new account the credit union must use the term
"introductory" or "intro" immediately in front of the promotional APR.
Lenders are required to provide a homeownership counseling disclosure, listing ten HUD approved
counseling organizations in order of proximity to the borrower's current zip code, to applicants for
which of the following types of federally-related mortgage loans? Choose the best answer.
a. Purchase-money mortgages
b. Refinances
c. Closed-end home equity loans
d. Home equity lines of credit (HELOCs)
e. All of the above - (answer)e. All of the above
A member applied for a $3000 personal line of credit. The credit union wants to counteroffer the
member with a $1500 line of credit. To meet its Regulation B notification requirements, the credit
union:
a. Must send the member an adverse action notice, which cannot be combined with the counteroffer.
b. May send the member an adverse action notice combined with the counteroffer, but if the member
does not accept or does not respond to the counteroffer, the credit union must send another adverse
action notice.
,NCCCO Exam 3 | Study Guide & Practice Questions
c. May send the member an adverse action notice combined with the counteroffer, and if the member
does not accept or does not respond to the counteroffer, the credit union does not need to send
another adverse action notice.
d. Must send the member an adverse action notice with all counteroffers. - (answer)c. May send the
member an adverse action notice combined with the counteroffer, and if the member does not accept
or does not respond to the counteroffer, the credit union does not need to send another adverse action
notice.
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 - (answer)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.
, NCCCO Exam 3 | Study Guide & Practice Questions
d. a and c only
e. All of the above - (answer)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. -
(answer)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. -
(answer)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. - (answer)a. True, the credit union should seek legal help to navigate this process.
