Florida MLO Test 2024 Updated Questions With Verified Complete Answers || 72 Pages || Graded A+

Florida MLO Test 2024 Updated Questions With Verified Complete Answers || 72 Pages || Graded A+ The Consumer Financial Protection Bureau (CFPB) - ANSWER CFPB plays an important part in consumer protection through its financial institution oversight and consumer education. The CFPB directly impacts the mortgage loan industry as well as other financial service industries both depository and nondepository. The CFPB is the primary federal regulator for non-depository mortgage lenders and depository institutions with assets of over ten billion dollars. How many roles does the CFPB have? - ANSWER 5 Rules and Policy - ANSWER Uses research and public input to implement and enforce federal consumer financial laws. Enforcement - ANSWER Responsible for protecting consumers by holding financial service providers accountable through enforcement of federal consumer financial laws. Compliance - ANSWER Provides financial service providers information on registration and submission, regulatory guidance and compliance resources, and supervisory process and guidance documents. Data and Research - ANSWER Collects information and publishes research about many areas of the consumer financial marketplace. Consumer Education - ANSWER Provides resources to assist consumers in making informed financial decisions. Rules and Policy Role - ANSWER CFPB implements and enforces 19 federal consumer protection regulations. Data and Research Role - ANSWER CFPB requires them to collect information and look into topics associated with consumer financial issues. Compliance Role - ANSWER CFPB ensures registration and submission, provides regulatory guidance resources, and supervisory and guidance documents Consumer education role - ANSWER CFPB provides mortgage related resources for buying a house and mortgages Enforcement Role - ANSWER The CFPB is able to hold financial service providers accountable by enforcing federal consumer financial laws Consumer protection laws and regulations can be divided into 3 areas: - ANSWER Financial disclosures Privacy protection and consumer identification Prohibition of predatory lending Federal disclosure laws require two things: - ANSWER The total cost of the transaction. Compensation and relationship between service company and/or lending professionals to whom a client might be referred. Equal Credit Opportunity Act (ECOA) Regulation B 12 CFR §1002 - ANSWER The purpose of Reg B is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract) because all or part of the applicant's income derives from a public assistance program, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. Home Mortgage Disclosure Act (HMDA / Reg. C) - ANSWER Regulation C 12 CFR §1003 is intended to provide the public with loan data that can be used to help determine whether financial institutions are serving the housing needs of their communities; to assist public officials in distributing public-sector investment so as to attract private investment to areas where it is needed, and to assist in identifying possible discriminatory lending patterns and enforcing anti-discrimination statutes. It is NOT intended to encourage unsound lending practices or the allocation of credit. Home Ownership and Equity Protection Act (HOEPA) - ANSWER CFPB Bulletin 2013-13 originally put into place in 1994 as an amendment to the Truth in Lending Act (TILA) 12 CFR §1026 to stop abusive practices in refinances and closed-end home equity loans that had high interest rates or high fees. Since then there have been additional amendments to Regulation Z (Truth in Lending) expanding the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protections Act of 1994 (HOEPA), revising and expanding the tests for coverage under HOEPA, and imposing additional restrictions on mortgages that are covered by HOEPA, including a pre-loan counseling requirement, and Regulation Z and Regulation X (Real Estate Settlement Procedures Act) 12 CFR §1024 imposing certain other requirements related to homeownership counseling, including a requirement that consumers receive information about homeownership counseling providers. Homeowners Protection Act (HPA) - ANSWER CFPB BULLETIN 2015-03, also known as the PMI Cancellation Act establishes provisions for canceling and terminating PMI, sets disclosure and notification requirements, and requires the return of unearned premiums. Real Estate Settlement Procedures Act (RESPA / Reg. X) Regulation X - ANSWER Regulation X contains the CFPB's rules relating to the disclosure of records and information generated by and obtained by the CFPB. It has 5 subparts. Subpart A contains general provisions and definitions used in Reg X. Subpart B implements the Freedom of Information Act, 5 U.S.C. 552. Subpart C of RESPA sets forth the procedures with respect to subpoenas, orders, or other requests for CFPB information in connection with legal proceedings. Subpart D provides for the protection of confidential information and procedures for sharing confidential information with supervised institutions, government Agencies, and others in certain circumstances. Subpart E implements the Privacy Act of 1974, 5 U.S.C. 552a. Truth in Lending Act (TILA/Reg. Z) Regulation Z (12 CFR §1026) - ANSWER Regulation Z promotes the informed use of consumer credit by requiring disclosures about its terms and cost, includes substantive protections, gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes.(1) The TILA/RESPA Integrated Disclosure Rule (TRID) - ANSWER Incorporated into Reg. Z, the TRID Rule combined separate disclosures previously required under Reg Z (TILA) and Reg X (RESPA) into one application disclosure-the Loan Estimate, and one final disclosure-the Closing Disclosure. Fair Credit Reporting Act (FCRA) - ANSWER Code of Federal Regulations (CFR) 12 CFR §1022- Regulation V applies to persons that obtain and use information about consumers to determine the consumer's eligibility for products, services, or employment, share such information among affiliates, and furnish information to consumer reporting agencies. Appendices B, D, H, I, K, L, M, and N contain model forms and disclosures for use to comply with FCRA. Fair and Accurate Credit Transactions Act (FACTA / Red Flags Rule) - ANSWER amendment to the Fair Credit Reporting Act (FCRA) 12 CFR §1022. It gives consumers the right to one free credit report a year and the ability to purchase, for a reasonable fee, a credit score along with information about how the credit score is calculated. It also requires the provision of risk-based pricing notices and credit scores to consumers in connection with denials or less favorable offers of credit. Fair and Accurate Credit Transactions Act (FACTA / Red Flags Rule) - ANSWER FACTA adds provisions to prevent and mitigate identity theft, including the ability to place fraud alerts in their credit files. FACTA includes the Red Flags Rule which requires organizations to implement written identity theft prevention programs to help them identify any of the relevant red flags that indicate identity theft in daily operations. There are 5 categories FACTA suggests creditors and lenders use as a starting point for their Red Flag Program. - ANSWER Warnings, alerts, alarms or notifications from a consumer reporting agency. Suspicious documents. Unusual use of, or suspicious activity related to, a covered account. Suspicious personally identifying information, such as a suspicious inconsistency with a last name or address. Notifications from customers, law enforcement authorities, other businesses and victims of identity theft about possible identity theft concerning specified accounts. Portions of Gramm-Leach-Bliley Act - Regulation P - ANSWER governs the treatment of nonpublic personal information about consumers by the financial institutions in three ways. It requires a financial institution to provide notice to customers about its privacy policies and practices. Regulation P describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to nonaffiliated third parties. Finally, it provides a method for consumers to prevent a financial institution from disclosing that information to most nonaffiliated third parties by opting out of that disclosure. Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) - ANSWER 12 CFR §1008.1 puts into place the federal registration requirement for mortgage loan originators. The objectives of this registration are to aggregate and improve the flow of information to and between regulators, to provide increased accountability and tracking of mortgage loan originators, enhance consumer protections, support anti-fraud measures, and give consumers easy access to information at no charge about the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators. Home Ownership Equity Protection Act (HOEPA) - ANSWER CFPB Bulletin 2013-13 as mentioned earlier HOEPA was originally put into place in 1994 as an amendment to the Truth in Lending Act (TILA) 12 CFR §1026 to stop abusive practices in refinances and closed-end home equity loans that had high interest rates or high fees. MLO Compensation Rule (Regulation Z) - ANSWER implements requirements and restrictions imposed by the Dodd Frank Act concerning loan originator compensation, qualifications of, and registration or licensing of loan originators, compliance procedures for depository institutions, mandatory arbitration, and the financing of single-premium credit insurance. MLO Compensation Rule (Regulation Z) - ANSWER It revises restrictions on loan originator compensation, including application of these restrictions to prohibitions on dual compensation and compensation based on a term of a transaction or a proxy for a term of a transaction, and to record-keeping requirements. Reg Z also establishes tests for when loan originators can be compensated through certain profits-based compensation arrangements. Higher-Priced Loans (Regulation Z) - ANSWER contains some prohibited acts and practices associated with Higher Priced Loans. It addresses home improvement contracts, notice to the assignee, refinancings within one-year period, repayment ability for high-cost mortgages, pre-loan counseling, recommended default, late fees, payoff statements, and financing of points and fees. Predatory Lending Laws include... - ANSWER the SAFE Act, Higher-Priced Loans/Regulation Z and MLO compensation Rule/Regulation Z Disclosure Laws include... - ANSWER ECOA / Reg. B), HMDA / Reg. C), RESPA / Reg. X, TRID/Regulation Z and HPA. Privacy laws include... - ANSWER the FCRA/ Regulation V, FACTA / Red Flag Rules, and portions of the Gramm-Leach-Bliley Act/ Regulation Pthe FCRA/ Regulation V, FACTA / Red Flag Rules, and portions of the Gramm-Leach-Bliley Act/ Regulation P How many steps in the Complaint Process and what are they? - ANSWER 5 Step 1: Complaint Submitted Step 2: Review and Route Step 3: Company Response Step 4: Complaint Published Step 5: Consumer Review Three of the functions of the Department of Housing and Urban Development are: - ANSWER Fair Housing and Equal Opportunity (FHEO) Policy Development and Research, and Field Policy Management FHEO - ANSWER The Office of Fair Housing and Equal Opportunity aims to end discrimination in the housing market, foster economic opportunity for all peoples, and ultimately create diverse and inclusive communities by "leading the nation in the enforcement, administration, development, and public understanding of federal fair housing policies and laws"(1). FHEO accomplishes this through the introduction and enforcement of fair housing laws, the protection of civil rights in HUD programs, the examination of consumer complaints regarding unfair housing practices, the use of regular compliance checks, and the presentation of fair housing awards.