If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you
in regards to a loan, when does right to contact them expire?
A. 1 month
B. 2 months
C. 3 months
D. 4 months - ANSWER C. 3 months
An established business relationship with a company also will be created if you make an in-
quiry to the company, or submit an application to it. This kind of established business rela-
tionship exists for three months after the inquiry or application. During this time, the com-
pany can call you.
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below would be
considered a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
D. $200,000 loan with fees of $16,500 - ANSWER D. $200,000 loan with fees of
$16,500
What does it mean that HUD Homes are initially offered on a "priority basis"?
1
,A. People who are buying the home as their primary residence are given 1st priority to make
an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to make
an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage quick
sale.
D. HUD will give priority financing to initial buyers of HUD Homes. - ANSWER A. People
who are buying the home as their primary residence are given 1st priority to make an offer.
HUD is the Department of Housing and Urban Development: the United States federal de-
partment that administers federal programs dealing with better housing and urban renewal;
created in 1965
The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
C. closing costs.
D. loan servicing practices. - ANSWER B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and key
provisions. RESPA requires disclosure of closing costs and loan servicing practices. ECOA re-
quires disclosure of the appraisal.
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
2
,D. Within 1 business days after settlement - ANSWER B. Within 30 calendar days after
settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the
amount by which the tolerance was exceeded, at settlement or within 30 calendar days after
settlement.
Which Regulation corresponds to The Real Estate Settlement Procedures Act (RESPA) ?
A. regulation Y
B. regulation V
C. regulation Z
D. regulation X - ANSWER D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One,
passed by the Federal Reserve Board, concerns credit extended to people who purchase
United States Treasury securities. The other, also known as the Real Estate Settlement Proce-
dures Act (RESPA) is concerned with the process of completing real estate sales. People who
participate in such sales are monitored by the Department of Housing and Urban Develop-
ment to determine whether or not they are adhering to legislation such as Regulation X.
Which is a disclosure that RESPA requires creditors to give to customers at the time of the
mortgage loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE - ANSWER B. HUD-1
The HUD-1 Settlement Statement is a standard form in use in the United States of America
which is used to itemize services and fees charged to the borrower by the lender or broker.
3
, The Federal law requiring unrestricted access to public accommodations is the:
A. Fair Housing act
B. The public accommodations
C. Real Estate Settlement procedures act
D. Americans with Disabilities Act. - ANSWER D. Americans with Disabilities Act.
The Americans with Disabilities Act which gives civil rights protection to individuals with dis-
abilities similar to those provided to individuals on the basis of race, color, sex, national
origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in
public accommodations, employment, transportation, State and local government services,
and telecommunications.
If each of the following loans would otherwise require compliance with the Federal Truth-in-
Lending ACT, which one would be exempt on the basis of the type of loan itself?
A. An agricultural loan by a bank
B. A VA loan from a federally-charted savings and loan association
C. $25,000 loan from a credit union for home improvement
D. $20,000 signature loan from a consumer finance company - ANSWER A. An agricul-
tural loan by a bank
Truth-In-Lending Act was designed to protect the borrower by requiring the lender to make
a meaningful disclosure of credit terms to the borrower. The Truth-in-Lending Act would not
cover Agricultural Loans. The right of rescission on a loan begins when Loan documents are
signed by the borrower;
TILA allows consumers _____ to back out of a loan transaction through a right of rescission.
4
in regards to a loan, when does right to contact them expire?
A. 1 month
B. 2 months
C. 3 months
D. 4 months - ANSWER C. 3 months
An established business relationship with a company also will be created if you make an in-
quiry to the company, or submit an application to it. This kind of established business rela-
tionship exists for three months after the inquiry or application. During this time, the com-
pany can call you.
Under the Home Ownership and Equity Protection Act (HOEPA), which loan below would be
considered a high-cost loan?
A. $100,000 loan with fees of $7,500
B. $300,000 loan with fees of $22,500
C. $420,000 loan with fees of $20,500
D. $200,000 loan with fees of $16,500 - ANSWER D. $200,000 loan with fees of
$16,500
What does it mean that HUD Homes are initially offered on a "priority basis"?
1
,A. People who are buying the home as their primary residence are given 1st priority to make
an offer.
B. Real estate brokers who are properly registered with HUD are given 1st priority to make
an offer.
C. HUD Homes are initially offered at a below-market or "priority" rate to encourage quick
sale.
D. HUD will give priority financing to initial buyers of HUD Homes. - ANSWER A. People
who are buying the home as their primary residence are given 1st priority to make an offer.
HUD is the Department of Housing and Urban Development: the United States federal de-
partment that administers federal programs dealing with better housing and urban renewal;
created in 1965
The Truth in Lending Act requires disclosure of
A. the property appraisal.
B. key terms of the credit transaction.
C. closing costs.
D. loan servicing practices. - ANSWER B. key terms of the credit transaction.
TILA requires a disclosure of the terms of the credit transactions, including costs and key
provisions. RESPA requires disclosure of closing costs and loan servicing practices. ECOA re-
quires disclosure of the appraisal.
How long does a lender have to cure a tolerance violation?
A. Within 10 business days after settlement
B. Within 30 calendar days after settlement
C. The borrower must be reimbursed at settlement
2
,D. Within 1 business days after settlement - ANSWER B. Within 30 calendar days after
settlement
RESPA allows lenders to cure the tolerance violation by reimbursing to the borrower the
amount by which the tolerance was exceeded, at settlement or within 30 calendar days after
settlement.
Which Regulation corresponds to The Real Estate Settlement Procedures Act (RESPA) ?
A. regulation Y
B. regulation V
C. regulation Z
D. regulation X - ANSWER D. regulation X
The term "Regulation X" can refer to two different regulations in the United States. One,
passed by the Federal Reserve Board, concerns credit extended to people who purchase
United States Treasury securities. The other, also known as the Real Estate Settlement Proce-
dures Act (RESPA) is concerned with the process of completing real estate sales. People who
participate in such sales are monitored by the Department of Housing and Urban Develop-
ment to determine whether or not they are adhering to legislation such as Regulation X.
Which is a disclosure that RESPA requires creditors to give to customers at the time of the
mortgage loan closing?
A. Mortgage Servicing Disclosure Statement
B. HUD-1
C. Settlement Costs and You Booklet
D. GFE - ANSWER B. HUD-1
The HUD-1 Settlement Statement is a standard form in use in the United States of America
which is used to itemize services and fees charged to the borrower by the lender or broker.
3
, The Federal law requiring unrestricted access to public accommodations is the:
A. Fair Housing act
B. The public accommodations
C. Real Estate Settlement procedures act
D. Americans with Disabilities Act. - ANSWER D. Americans with Disabilities Act.
The Americans with Disabilities Act which gives civil rights protection to individuals with dis-
abilities similar to those provided to individuals on the basis of race, color, sex, national
origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in
public accommodations, employment, transportation, State and local government services,
and telecommunications.
If each of the following loans would otherwise require compliance with the Federal Truth-in-
Lending ACT, which one would be exempt on the basis of the type of loan itself?
A. An agricultural loan by a bank
B. A VA loan from a federally-charted savings and loan association
C. $25,000 loan from a credit union for home improvement
D. $20,000 signature loan from a consumer finance company - ANSWER A. An agricul-
tural loan by a bank
Truth-In-Lending Act was designed to protect the borrower by requiring the lender to make
a meaningful disclosure of credit terms to the borrower. The Truth-in-Lending Act would not
cover Agricultural Loans. The right of rescission on a loan begins when Loan documents are
signed by the borrower;
TILA allows consumers _____ to back out of a loan transaction through a right of rescission.
4
