How long can a fraud alert be on a borrowers credit report? - ANSWER 1 year
When loan docs are signed and the loan is closed, funded and recorded the same day what
is this called? - ANSWER Wet State Closing
What federal law requires housing counseling be sent to borrowers? - ANSWER TILA
and HOEPA
What is the purpose of the closing agent? - ANSWER Verify the identity, notarize docu-
ments and disperse funds.
What federal law was created to prevent misrepresentations in commercial communica-
tions? - ANSWER Mortgage Acts and Practices (MAP)
What is the most commonly used FHA loan program? - ANSWER Section 203b
Which federal law prohibits deceptive calls lying about terms the lender is offering? - AN-
SWER Telemarketing and Consumer Fraud Abusive Prevention Act
Economic Growth, Regulatory Relief, and Consumer Protection Act to ammend FACRA and
requires which of the following? - ANSWER Requires the 3 credit bureaus to provide
security freezes free to consumers.
What federal law requires a borrowers demographic info? - ANSWER HMDA (Reg C)
1
,An act or practice is considered what when it cannot be reasonably avoided by consumers? -
ANSWER Unfair
When does the late period end for using Late CE course to renew an MLO license? - AN-
SWER February 28th
The Telemarketing and Consumer Fraud Abusive Prevention Act include the: - AN-
SWER Telemarketing Sales Rule
Is it the LOs job to make sure their is a complete loan application? - ANSWER YES
Under TILA a lender is considered to have regularly offered credit more than how many
times in a calendar year? - ANSWER 25 times
Fraud alerts have been extended from 90 days to ______? - ANSWER 1 Year
When MLOs review a borrowers bank statements they are looking for? - ANSWER Ac-
count ownership and large deposits
Where does a borrowers UFMIP and MMI payment go? - ANSWER The FHA
If and MLO wants to be licensed in another state, what allows them to operate in that other
state while awaiting approval if they meet specific requirements? - ANSWER Tempo-
rary Authority
What borrower asset may be used to secure cross-collateralized funds for closing? - AN-
SWER Home they are exiting
What federal law requires yearly training on it of all employees for a lender to be compliant?
2
, TILA
RESPA
BSA/AML
GLBA - ANSWER BSA/AML
A mortgage broker licensee wishes to surrender his license. How is this handled? - AN-
SWER Prior to losing a branch they most notify the state licensing agency through the
NMLS
What federal law makes discrimination based on race or ethnicity illegal?
TILA
ECOA
RESPA
HMDA - ANSWER ECOA
How long must the lender honor the LE? - ANSWER Until closing (unless there is a
valid CIC)
The government sponsored enterprise major role in mortgage lending has been to: - AN-
SWER Standardize and structure conforming guidelines to increase mortgage investor
cash flow to the market.
What is a conversion option for an ARM? - ANSWER Allows the borrower to convert
the loan from an ARM to a fixed rate during the conversion period set in the Note.
If an MLO understates the APR they are in violation of what law and could face a penalty of
how long? - ANSWER RESPA and $5,000
What is the purpose of TILA?
3
When loan docs are signed and the loan is closed, funded and recorded the same day what
is this called? - ANSWER Wet State Closing
What federal law requires housing counseling be sent to borrowers? - ANSWER TILA
and HOEPA
What is the purpose of the closing agent? - ANSWER Verify the identity, notarize docu-
ments and disperse funds.
What federal law was created to prevent misrepresentations in commercial communica-
tions? - ANSWER Mortgage Acts and Practices (MAP)
What is the most commonly used FHA loan program? - ANSWER Section 203b
Which federal law prohibits deceptive calls lying about terms the lender is offering? - AN-
SWER Telemarketing and Consumer Fraud Abusive Prevention Act
Economic Growth, Regulatory Relief, and Consumer Protection Act to ammend FACRA and
requires which of the following? - ANSWER Requires the 3 credit bureaus to provide
security freezes free to consumers.
What federal law requires a borrowers demographic info? - ANSWER HMDA (Reg C)
1
,An act or practice is considered what when it cannot be reasonably avoided by consumers? -
ANSWER Unfair
When does the late period end for using Late CE course to renew an MLO license? - AN-
SWER February 28th
The Telemarketing and Consumer Fraud Abusive Prevention Act include the: - AN-
SWER Telemarketing Sales Rule
Is it the LOs job to make sure their is a complete loan application? - ANSWER YES
Under TILA a lender is considered to have regularly offered credit more than how many
times in a calendar year? - ANSWER 25 times
Fraud alerts have been extended from 90 days to ______? - ANSWER 1 Year
When MLOs review a borrowers bank statements they are looking for? - ANSWER Ac-
count ownership and large deposits
Where does a borrowers UFMIP and MMI payment go? - ANSWER The FHA
If and MLO wants to be licensed in another state, what allows them to operate in that other
state while awaiting approval if they meet specific requirements? - ANSWER Tempo-
rary Authority
What borrower asset may be used to secure cross-collateralized funds for closing? - AN-
SWER Home they are exiting
What federal law requires yearly training on it of all employees for a lender to be compliant?
2
, TILA
RESPA
BSA/AML
GLBA - ANSWER BSA/AML
A mortgage broker licensee wishes to surrender his license. How is this handled? - AN-
SWER Prior to losing a branch they most notify the state licensing agency through the
NMLS
What federal law makes discrimination based on race or ethnicity illegal?
TILA
ECOA
RESPA
HMDA - ANSWER ECOA
How long must the lender honor the LE? - ANSWER Until closing (unless there is a
valid CIC)
The government sponsored enterprise major role in mortgage lending has been to: - AN-
SWER Standardize and structure conforming guidelines to increase mortgage investor
cash flow to the market.
What is a conversion option for an ARM? - ANSWER Allows the borrower to convert
the loan from an ARM to a fixed rate during the conversion period set in the Note.
If an MLO understates the APR they are in violation of what law and could face a penalty of
how long? - ANSWER RESPA and $5,000
What is the purpose of TILA?
3
