SAFE MLO Exam Questions and Answers Best rated A+ Guaranteed Success Latest Update 2024

AARMR stands for - American Association of Residential Mortgage Regulations AML - Anti-Money Laundering Blockbusting - Illegal practice of inducing homeowners to sell their properties cheaply by telling them that a certain people of a certain race, national origin or religion are moving into the area, and thus profiting by reselling at a higher price CC&R - covenants, conditions, and restrictions CFPB - The Consumer Financial Protective Bureau - an independent federal agency that holds primary responsibility for regulating consumer protection. (Created via Dodd-Frank (2010) and began operating in 2011) CFR - Code of Federal Regulations, Divided into 50 Titles CHARM - Consumer Handbook on Adjustable Rate Mortgages - Required to be given for all ARMs within 3 days of application, per TILA COFI - (Cost of Funds Index) Cost of Funds Index An index that reflects the cost of borrowing money as per the 11th District Federal Home Loan Bank. This index is used by Fannie Mae when purchasing ARM loans. CRA (what, when; note: not Credit Reporting Agency) - Community Reinvestment Act of 1977; requires Fed Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of communities they do business in, including low- and moderate-income (LMI) neighborhoods CRV - Certificate of Reasonable Value (VA).CSBS - Conference of State Bank Supervisors Disposal Rule - Part of FACTA; dictates how to dispose of consumer info (this is why you are required to shred!) ECOA (what, year, and Reg letter) - Equal Credit Opportunity Act, Regulation B; federal law prohibiting discrimination in credit/lending based on race, marital status, age, etc,. (Passed in 1974, expanded in 1976) EEM - Energy Efficient Mortgage (FHA; allows financing cost of improvements like solar) EGRRCPA - Economic Growth, Regulatory Relief, and Consumer Protection Act; amended fraud alert rules under FCRA; increased fraud alerts from 90 days to 1 year FACTA (what and year) - Fair and Accurate Credit Transaction Act of 2003 FCRA (define and year) - Fair Credit Reporting Act - Regulation V (Passed in 1970); this is what requires Adverse Action notice be given to borrower within 30 days of denial due to credit FEMA - Federal Emergency Management Agency (oversees Flood Program) FERA (what and year) - Fraud Enforcement and Recovery Act of 2009; combat mortgage fraud by implementing stricter penalties of up to $1,000,000 fine and possible jail time FFIEC - Federal Financial Institutions Examination Council (sets standards for examinations) FHLMC - Federal Home Loan Mortgage Corporation (Freddie Mac) FHA (note: agency, not act) - Federal Housing Administration (3.5% DP, lower credit required)FHA (note: act, not the agency) - Fair Housing Act; added disabled borrowers to the protected classes