National and UST Mortgage Practice Exam 4 2023 with 100% complete solutions

The administrative authority of the Commissioner includes all but which of the following? correct answersThe answer is sentencing violators of the S.A.F.E. Act to appropriate prison terms. State regulators, such as a Commissioner, are not responsible for determining criminal sentences for violators of the S.A.F.E. Act. Which of the following forms of compensation is a violation of RESPA? correct answersThe answer is a fee paid by a title company to an originator for referral of settlement services. RESPA requires any fees to be "earned." Referral fees are considered a violation. When is it legal to refuse to conduct a lending transaction with a consumer on the basis of their personal characteristics? correct answersThe answer is the borrower is too young to have legal authority to enter a binding contract. A creditor may consider the personal characteristics of the applicant if the applicant is not of legal age to enter a binding contract. All of the following types of information must be reported for government monitoring purposes in accordance with HMDA, except: correct answersThe answer is ethnicity, race, sex, and religion of the applicant. HMDA monitoring requires the collection of extensive data about each mortgage loan application and origination. This includes any action taken on the loan, indication of whether the loan is subject to HOEPA, and the ethnicity, race, sex, and income of the applicant. HMDA does not require the collection of information about an applicant's religion. Which of the following borrowers is best suited for an HECM? correct answersThe answer is a 65-year-old borrower without a mortgage who would like to supplement his income. Home equity conversion mortgages allow elderly borrowers who have significant equity in their homes the opportunity to draw on that equity, without repayment, as long as they continue to live in the home. A consumer signs a closed-end lending agreement on Wednesday. What is the latest that he/she may wait to exercise the right to rescind? correct answersThe answer is midnight on Saturday. A consumer for a closed-end loan may exercise the right to rescind at any time up until midnight of the third business day after signing the lending agreement. For the purposes of calculating time limitations for rescission, Saturdays are considered to be business days - meaning that if the consumer signed an agreement on