SAFE MORTGAGE LOAN ORIGINATOR TEST - NATIONAL COMPONENT WITH UNIFORM STATE CONTENT|UPDATED&VERIFIED|100% SOLVED|GUARANTEED SUCCESS

What does UST stand for? Uniform State Test Who does the CFPB protect? The Consumer Financial Protection Bureau protects consumers in the financial marketplace. What does the CFPB do? CFPB is now in charge of implementing and enforcing most of the provisions of federal lending laws that relate to protecting consumers while they are shopping for, securing, and paying off mortgages. What is the purpose of RESPA? (3 things) a.Protect consumers from excessive settlement costs and unearned fees b.Limit the amount of funds that creditors can require consumers to deposit into escrow accounts c.Establish disclosures, policies, and procedures to facilitate timely communications between loan servicers and consumers Who is responsible for the enforcement of RESPA and for issuing implementing regulations? The CFPB What are RESPA's regulations called? Regulation X Which 2 documents replaced RESPA's Good Faith Estimate and the Truth-in-Lending Disclosure? 1.) Loan Estimate 2.) Closing Disclosure What types of mortgages does RESPA cover? "Federally-related mortgage loans," the requirements of RESPA apply to virtually every home loan secured by a mortgage. What type of loans does RESPA not pertain to? a. Loans for business, commercial, or agricultural purposes b. Temporary financing c. Loans secured by vacant land d. The sale of a loan into the secondary market e. Loan conversions (same note - new terms) Is compensating someone for a referral legal? No!!! What is "borrower credit"? Historically referred to as "yield spread premium" (YSP), the borrower credit is a fee paid to the borrower by the lender when a loan is originated at a higher interest rate than the lowest rate for which the borrower qualifies. The borrower credit is used to subsidize closing costs, such as the origination or broker fee, because it is financed so that out-of-pocket closing costs are "borrowed" from the lender. What is a markup? A unilateral increase in the cost of a settlement service and retention of the additional fee by the party making the markup. The controversy over markups and their legality is discussed in a subsequent course section. As a practice that may easily lead to litigation, it is one that should not be used without obtaining legal advice. What are the 5 disclosures required by RESPA? 1.) Loan Estimate 2.) Closing Disclosure 3.) Settlement Cost Information Booklet 4.) Mortgage Servicing Disclosure Statement 5.) Affiliated Business Arrangement Disclosure Are creditors allowed to add their name to the cover of the Special Information Booklet sent to borrowers? Yes Are they allowed to translate it into other languages? Yes Are they allowed to send it with other materials in a larger document? No For a loan with a co-borrower, must each applicant receive a Special Information Booklet? No, only one person has to receive. After a loan application is submitted, how many business days later must a borrower receive their Special Information Booklet? 3 days (for purchase only) When is a Special Information Booklet not required to be sent? (3 answers) 1.) A refinance 2.) A closed-end loan secured by a subordinate lien 3.) A reverse mortgage loan How long does RESPA require a lender to keep each Affiliated Business Arrangement disclosure? 5 years If a MLO recommends a particular settlement service provider over the phone, in how many days must a borrower receive a disclosure in the mail? 3 business days If a settlement service provider refers a loan applicant to an affiliated business for settlement services, he or she must disclose the affiliated business arrangement...? At the time the referral is made.