HUD COUNSELOR EXAM |ACTUAL
QUESTIONS AND CORRECT
DETAILED ANSWERS WITH
RATIONALES|ALREADY GRADED A+
Equal Credit Opportunity Act (ECOA): - CORRECT-ANSWER-Federal law
requiring lenders to make credit available equally without
discrimination based on race, color, religion, national origin, age, sex,
marital status, or receipt of income from public assistance programs
Equal Credit Opportunity Act (ECOA) violation example: - CORRECT-
ANSWER-A lender denied a loan for immigrant family. When the family
inquired about the reason for denial, the lender claimed that he would
not approve loans for homebuyers who have lived in the country less
than 5 years
Equal Credit Opportunity Act (ECOA) how to file complaints: - CORRECT-
ANSWER-Enforced by Federal Trade Commission (FTC)
,FTC.gov/complaint
RESPA (Real Estate Settlement Procedures Act): - CORRECT-ANSWER-a
law requiring full disclosure of closing costs to buyer and seller.
RESPA (Real Estate Settlement Procedures Act) enforced by: -
CORRECT-ANSWER-(CFPB) Consumer Financial Protection Bureau
TILA (Truth in Lending Act): - CORRECT-ANSWER-Is part of the Federal
Consumer Protection Act and lays out disclosure requirements,
advertising
requirements as well as rights of rescission and penalties for violation
TILA (Truth in Lending Act) regulated by: - CORRECT-ANSWER-(FTC)
Federal Trade Commission
,TILA-RESPA Integrated Disclosure Rule (TRID): - CORRECT-ANSWER-
Easier to use mortgage disclosure forms. The rule combined the
following disclosures:
1) The Good Faith Estimate (GFE) and the Truth-in-Lending disclosure
(TIL) because the Loan Estimate
2) The HUD-1 Settlement Statement and the final TIL disclosure became
the Closing Disclosure
Fees that cannot increase from Loan Estimate to Closing Disclosure: -
CORRECT-ANSWER-1) Fees paid to lender, mortgage broker, or affiliate
of either
2) fees required service that the lender did not allow the borrower to
show separately for, when the provider is not affiliated with the lender
or mortgage broker
3) transfer taxes
Fees that can increase up to 10%: - CORRECT-ANSWER-Required
services that we he borrower selects from the lenders list of providers
Government recording charges
, Fees on loan closing that can increase any amount: - CORRECT-
ANSWER-1) pre-paid interest, property insurance premiums, and initial
escrow deposits
2) fees for required services that the borrower can shop for
3) fees for third part services the lender does lot require
HOEPA - Home Ownership and Equity Protection Act: - CORRECT-
ANSWER-Enacted in 1994 as an amendment to the Truth in Lending Act
(TILA) to address abusive practices in refinances and closed-end home
equity loans with high interest rates or high fees.
The Dodd-Frank act adds new protections for high-cost mortgages;
including a requirement that consumers recover homeownership
counseling before obtaining a high-cost mortgage
HOEPA requires: - CORRECT-ANSWER-Certain disclosures at least three
days before closing
QUESTIONS AND CORRECT
DETAILED ANSWERS WITH
RATIONALES|ALREADY GRADED A+
Equal Credit Opportunity Act (ECOA): - CORRECT-ANSWER-Federal law
requiring lenders to make credit available equally without
discrimination based on race, color, religion, national origin, age, sex,
marital status, or receipt of income from public assistance programs
Equal Credit Opportunity Act (ECOA) violation example: - CORRECT-
ANSWER-A lender denied a loan for immigrant family. When the family
inquired about the reason for denial, the lender claimed that he would
not approve loans for homebuyers who have lived in the country less
than 5 years
Equal Credit Opportunity Act (ECOA) how to file complaints: - CORRECT-
ANSWER-Enforced by Federal Trade Commission (FTC)
,FTC.gov/complaint
RESPA (Real Estate Settlement Procedures Act): - CORRECT-ANSWER-a
law requiring full disclosure of closing costs to buyer and seller.
RESPA (Real Estate Settlement Procedures Act) enforced by: -
CORRECT-ANSWER-(CFPB) Consumer Financial Protection Bureau
TILA (Truth in Lending Act): - CORRECT-ANSWER-Is part of the Federal
Consumer Protection Act and lays out disclosure requirements,
advertising
requirements as well as rights of rescission and penalties for violation
TILA (Truth in Lending Act) regulated by: - CORRECT-ANSWER-(FTC)
Federal Trade Commission
,TILA-RESPA Integrated Disclosure Rule (TRID): - CORRECT-ANSWER-
Easier to use mortgage disclosure forms. The rule combined the
following disclosures:
1) The Good Faith Estimate (GFE) and the Truth-in-Lending disclosure
(TIL) because the Loan Estimate
2) The HUD-1 Settlement Statement and the final TIL disclosure became
the Closing Disclosure
Fees that cannot increase from Loan Estimate to Closing Disclosure: -
CORRECT-ANSWER-1) Fees paid to lender, mortgage broker, or affiliate
of either
2) fees required service that the lender did not allow the borrower to
show separately for, when the provider is not affiliated with the lender
or mortgage broker
3) transfer taxes
Fees that can increase up to 10%: - CORRECT-ANSWER-Required
services that we he borrower selects from the lenders list of providers
Government recording charges
, Fees on loan closing that can increase any amount: - CORRECT-
ANSWER-1) pre-paid interest, property insurance premiums, and initial
escrow deposits
2) fees for required services that the borrower can shop for
3) fees for third part services the lender does lot require
HOEPA - Home Ownership and Equity Protection Act: - CORRECT-
ANSWER-Enacted in 1994 as an amendment to the Truth in Lending Act
(TILA) to address abusive practices in refinances and closed-end home
equity loans with high interest rates or high fees.
The Dodd-Frank act adds new protections for high-cost mortgages;
including a requirement that consumers recover homeownership
counseling before obtaining a high-cost mortgage
HOEPA requires: - CORRECT-ANSWER-Certain disclosures at least three
days before closing
