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NCCO Exam 3 ACTUAL NEW VERSION WITH COMPLETE
QUESTIONS AND CORRECT DETAILED SOLUTIONS LATEST
UPDATED VERSION JUST RELEASED
Question: Regulation Z requires a credit union to provide a member with an escrow
cancellation notice, when must this notice be provided?
a. The notice must be delivered 30 days before the escrow account is cancelled.
b. The notice must be sent at least 3 days before the escrow account is cancelled.
c. If the member requests the cancellation, the notice must be provided no later than 3 business
days before the escrow account is closed. If the credit union initiates the cancellation, the
notice must be provided at least 30 business days before the escrow account is closed.
d. The notice must be provided at least 30 business days before the escrow account is closed. -
CORRECT ANSWER✔✔c. If the member requests the cancellation, the notice must be provided
no later than 3 business days before the escrow account is closed. If the credit union initiates
the cancellation, the notice must be provided at least 30 business days before the escrow
account is closed.
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Question: A member can cancel a private education loan even after the credit union sends
final disclosures and the member accepts the loan.
a. True, a member can cancel the loan until midnight on the third business day after receiving
the final disclosures.
b. False, this ability to cancel only applies to a consolidation of existing private education loans. -
CORRECT ANSWER✔✔a. True, a member can cancel the loan until midnight on the third
business day after receiving the final disclosures.
Question: A credit union must obtain a court order before repossessing an automobile or
foreclosing on a mortgage from a servicemember. Choose the best answer.
a. True, the credit union should seek legal help to navigate this process.
b. False, this protection only applies to servicemembers who are stationed outside of the United
States.
c. False, the mortgage foreclosure protection only applies in states where there is a requirement
for judicial foreclosures. - CORRECT ANSWER✔✔a. True, the credit union should seek legal help
to navigate this process.
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Question: If a member submits an incomplete loan application, the credit union:
a. May send the member a written "Notice of Incompleteness," informing the member of the
required information and the time period for the member to respond.
b. May orally inform the member of the required additional information and if the member
does not provide the additional information, the credit union has no further obligation.
c. Does not have any obligation to follow up with the member. - CORRECT ANSWER✔✔a. May
send the member a written "Notice of Incompleteness," informing the member of the required
information and the time period for the member to respond.
Question: How long must a credit union retain records of evidence for a member's ability to
repay a loan under the ability-to-repay requirements for mortgage loans?
a. 2 years
b. 3 years
c. 4 years
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d. 7 years - CORRECT ANSWER✔✔b. 3 years
Question: Periodic statements are required for all open-end credit products.
a. True, Regulation Z's periodic statement requirement applies to all open-end credit.
b. False, periodic statements are required for credit card accounts and home equity lines of
credit (HELOCs) but not other open-end credit products. - CORRECT ANSWER✔✔a. True,
Regulation Z's periodic statement requirement applies to all open-end credit.
Q:If a credit union is advertising a promotional APR on an open-end credit product, the credit
union must also include information about when the promotional rate ends and the APR that
will apply after the end of the promotional period.
a. True, and if the promotional rate is at the opening of a new account the credit union must use
the term "introductory" or "intro" immediately in front of the promotional APR.
b. True, but this requirement only applies to home equity lines of credit (HELOCs).
NCCO Exam 3 ACTUAL NEW VERSION WITH COMPLETE
QUESTIONS AND CORRECT DETAILED SOLUTIONS LATEST
UPDATED VERSION JUST RELEASED
Question: Regulation Z requires a credit union to provide a member with an escrow
cancellation notice, when must this notice be provided?
a. The notice must be delivered 30 days before the escrow account is cancelled.
b. The notice must be sent at least 3 days before the escrow account is cancelled.
c. If the member requests the cancellation, the notice must be provided no later than 3 business
days before the escrow account is closed. If the credit union initiates the cancellation, the
notice must be provided at least 30 business days before the escrow account is closed.
d. The notice must be provided at least 30 business days before the escrow account is closed. -
CORRECT ANSWER✔✔c. If the member requests the cancellation, the notice must be provided
no later than 3 business days before the escrow account is closed. If the credit union initiates
the cancellation, the notice must be provided at least 30 business days before the escrow
account is closed.
, Page 2 of 36
Question: A member can cancel a private education loan even after the credit union sends
final disclosures and the member accepts the loan.
a. True, a member can cancel the loan until midnight on the third business day after receiving
the final disclosures.
b. False, this ability to cancel only applies to a consolidation of existing private education loans. -
CORRECT ANSWER✔✔a. True, a member can cancel the loan until midnight on the third
business day after receiving the final disclosures.
Question: A credit union must obtain a court order before repossessing an automobile or
foreclosing on a mortgage from a servicemember. Choose the best answer.
a. True, the credit union should seek legal help to navigate this process.
b. False, this protection only applies to servicemembers who are stationed outside of the United
States.
c. False, the mortgage foreclosure protection only applies in states where there is a requirement
for judicial foreclosures. - CORRECT ANSWER✔✔a. True, the credit union should seek legal help
to navigate this process.
, Page 3 of 36
Question: If a member submits an incomplete loan application, the credit union:
a. May send the member a written "Notice of Incompleteness," informing the member of the
required information and the time period for the member to respond.
b. May orally inform the member of the required additional information and if the member
does not provide the additional information, the credit union has no further obligation.
c. Does not have any obligation to follow up with the member. - CORRECT ANSWER✔✔a. May
send the member a written "Notice of Incompleteness," informing the member of the required
information and the time period for the member to respond.
Question: How long must a credit union retain records of evidence for a member's ability to
repay a loan under the ability-to-repay requirements for mortgage loans?
a. 2 years
b. 3 years
c. 4 years
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d. 7 years - CORRECT ANSWER✔✔b. 3 years
Question: Periodic statements are required for all open-end credit products.
a. True, Regulation Z's periodic statement requirement applies to all open-end credit.
b. False, periodic statements are required for credit card accounts and home equity lines of
credit (HELOCs) but not other open-end credit products. - CORRECT ANSWER✔✔a. True,
Regulation Z's periodic statement requirement applies to all open-end credit.
Q:If a credit union is advertising a promotional APR on an open-end credit product, the credit
union must also include information about when the promotional rate ends and the APR that
will apply after the end of the promotional period.
a. True, and if the promotional rate is at the opening of a new account the credit union must use
the term "introductory" or "intro" immediately in front of the promotional APR.
b. True, but this requirement only applies to home equity lines of credit (HELOCs).
