TE Practice Exam Questions with 100%
Verified Answers Latest Versions 2025
Graded A+
When are insurance disclosures given?
disclosures MUST be made orally AND in writing when the consumer applies
(regardless if they get insurance at that time)
When are insurance disclosures given?
disclosures MUST be made orally AND in writing when the consumer applies
(regardless if they get insurance at that time)
a "customer" under GLBA is defined as:
consumer who has a "customer relationship" with the bank. Bank provides one or more
products/services to consumer
Deposit/investment acct
obtains a loan
enters into a lease of property
obtains advisory services
a "customer" under GLBA is defined as:
consumer who has a "customer relationship" with the bank. Bank provides one or more
products/services to consumer
Deposit/investment acct
obtains a loan
enters into a lease of property
obtains advisory services
HMDA Tolerances
3 CALENDAR days for application/action taken
1K - loan amount/income
HMDA Tolerances
3 CALENDAR days for application/action taken
1K - loan amount/income
HMDA reporting threshold
25 closed-end
200 open-end
must surpass thresholds 2yrs in a row
HMDA reporting threshold
25 closed-end
200 open-end
must surpass thresholds 2yrs in a row
,Borrower requested cancellation on non-high risk loan
can request cancellation when the principal balance of the loan reaches or is first
scheduled to reach 80% of the "original value" (defined as the lesser of the sales price
as reflected on the purchase contract OR appraised value at time of origination)
Refi: original value means ONLY appraised value
Borrower requested cancellation on non-high risk loan
can request cancellation when the principal balance of the loan reaches or is first
scheduled to reach 80% of the "original value" (defined as the lesser of the sales price
as reflected on the purchase contract OR appraised value at time of origination)
Refi: original value means ONLY appraised value
Flood CMPs
Maximum of 2K per violation
There is no ceiling on the total penalty amount that a Federal supervisory agency can
assess for a pattern or practice of violations
Flood CMPs
Maximum of 2K per violation
There is no ceiling on the total penalty amount that a Federal supervisory agency can
assess for a pattern or practice of violations
Flood structures that are EXEMPT from the mandatory flood insurance
requirement:
1. State-owned property covered under a police of self-insurance
2. principal balance of 5K or less AND a term of 1yr or less
3. Any structure that is a part of any residential property but is detached from the
primary residential structure and DOES NOT serve as a residence (detached garage for
example)
Flood structures that are EXEMPT from the mandatory flood insurance
requirement:
1. State-owned property covered under a police of self-insurance
2. principal balance of 5K or less AND a term of 1yr or less
3. Any structure that is a part of any residential property but is detached from the
primary residential structure and DOES NOT serve as a residence (detached garage for
example)
LTD in public file
each quarter of the prior calendar year
LTD in public file
each quarter of the prior calendar year
CD - letting an organization use their facility for meetings
.21(f) of the Q&As
Would receive CRA consideration: providing free or discounted data processing
systems, or office facilities to aid an MWLI in serving its customers.
CD - letting an organization use their facility for meetings
, .21(f) of the Q&As
Would receive CRA consideration: providing free or discounted data processing
systems, or office facilities to aid an MWLI in serving its customers.
For Flood: Does it matter if the property is taken only "out of an abundance of
caution"?
bank MUST not make, increase, extend, or renew a loan without flood insurance
INCLUDING when a security interest in improved real property is taken only "out of an
abundance of caution.
For Flood: Does it matter if the property is taken only "out of an abundance of
caution"?
bank MUST not make, increase, extend, or renew a loan without flood insurance
INCLUDING when a security interest in improved real property is taken only "out of an
abundance of caution.
Nontraditional mortgages
interest only mortgages and payment option adjustable rate mortgages
These products allow borrowers to exchange lower payments during an initial period for
higher payments during a later amortization period.
concern is elevated with nontraditional products because of the lack of principal
amortization and potential for negative amortization
Nontraditional mortgages
interest only mortgages and payment option adjustable rate mortgages
These products allow borrowers to exchange lower payments during an initial period for
higher payments during a later amortization period.
concern is elevated with nontraditional products because of the lack of principal
amortization and potential for negative amortization
Remittance transfer investigation
MUST investigate promptly AND determine whether an error occurred with 90 days of
receiving notice of error
MUST report the results to the sender within 3 business days
Remittance transfer investigation
MUST investigate promptly AND determine whether an error occurred with 90 days of
receiving notice of error
MUST report the results to the sender within 3 business days
What's an EFT?
ATM
POS
ACH
Telephone bill-payment plans
Verified Answers Latest Versions 2025
Graded A+
When are insurance disclosures given?
disclosures MUST be made orally AND in writing when the consumer applies
(regardless if they get insurance at that time)
When are insurance disclosures given?
disclosures MUST be made orally AND in writing when the consumer applies
(regardless if they get insurance at that time)
a "customer" under GLBA is defined as:
consumer who has a "customer relationship" with the bank. Bank provides one or more
products/services to consumer
Deposit/investment acct
obtains a loan
enters into a lease of property
obtains advisory services
a "customer" under GLBA is defined as:
consumer who has a "customer relationship" with the bank. Bank provides one or more
products/services to consumer
Deposit/investment acct
obtains a loan
enters into a lease of property
obtains advisory services
HMDA Tolerances
3 CALENDAR days for application/action taken
1K - loan amount/income
HMDA Tolerances
3 CALENDAR days for application/action taken
1K - loan amount/income
HMDA reporting threshold
25 closed-end
200 open-end
must surpass thresholds 2yrs in a row
HMDA reporting threshold
25 closed-end
200 open-end
must surpass thresholds 2yrs in a row
,Borrower requested cancellation on non-high risk loan
can request cancellation when the principal balance of the loan reaches or is first
scheduled to reach 80% of the "original value" (defined as the lesser of the sales price
as reflected on the purchase contract OR appraised value at time of origination)
Refi: original value means ONLY appraised value
Borrower requested cancellation on non-high risk loan
can request cancellation when the principal balance of the loan reaches or is first
scheduled to reach 80% of the "original value" (defined as the lesser of the sales price
as reflected on the purchase contract OR appraised value at time of origination)
Refi: original value means ONLY appraised value
Flood CMPs
Maximum of 2K per violation
There is no ceiling on the total penalty amount that a Federal supervisory agency can
assess for a pattern or practice of violations
Flood CMPs
Maximum of 2K per violation
There is no ceiling on the total penalty amount that a Federal supervisory agency can
assess for a pattern or practice of violations
Flood structures that are EXEMPT from the mandatory flood insurance
requirement:
1. State-owned property covered under a police of self-insurance
2. principal balance of 5K or less AND a term of 1yr or less
3. Any structure that is a part of any residential property but is detached from the
primary residential structure and DOES NOT serve as a residence (detached garage for
example)
Flood structures that are EXEMPT from the mandatory flood insurance
requirement:
1. State-owned property covered under a police of self-insurance
2. principal balance of 5K or less AND a term of 1yr or less
3. Any structure that is a part of any residential property but is detached from the
primary residential structure and DOES NOT serve as a residence (detached garage for
example)
LTD in public file
each quarter of the prior calendar year
LTD in public file
each quarter of the prior calendar year
CD - letting an organization use their facility for meetings
.21(f) of the Q&As
Would receive CRA consideration: providing free or discounted data processing
systems, or office facilities to aid an MWLI in serving its customers.
CD - letting an organization use their facility for meetings
, .21(f) of the Q&As
Would receive CRA consideration: providing free or discounted data processing
systems, or office facilities to aid an MWLI in serving its customers.
For Flood: Does it matter if the property is taken only "out of an abundance of
caution"?
bank MUST not make, increase, extend, or renew a loan without flood insurance
INCLUDING when a security interest in improved real property is taken only "out of an
abundance of caution.
For Flood: Does it matter if the property is taken only "out of an abundance of
caution"?
bank MUST not make, increase, extend, or renew a loan without flood insurance
INCLUDING when a security interest in improved real property is taken only "out of an
abundance of caution.
Nontraditional mortgages
interest only mortgages and payment option adjustable rate mortgages
These products allow borrowers to exchange lower payments during an initial period for
higher payments during a later amortization period.
concern is elevated with nontraditional products because of the lack of principal
amortization and potential for negative amortization
Nontraditional mortgages
interest only mortgages and payment option adjustable rate mortgages
These products allow borrowers to exchange lower payments during an initial period for
higher payments during a later amortization period.
concern is elevated with nontraditional products because of the lack of principal
amortization and potential for negative amortization
Remittance transfer investigation
MUST investigate promptly AND determine whether an error occurred with 90 days of
receiving notice of error
MUST report the results to the sender within 3 business days
Remittance transfer investigation
MUST investigate promptly AND determine whether an error occurred with 90 days of
receiving notice of error
MUST report the results to the sender within 3 business days
What's an EFT?
ATM
POS
ACH
Telephone bill-payment plans
