NMLS Complete Study Question Well Answered And Rated 100% Correct!!

What law deals with credit, APR & advertising of consumer loans? TILA/REGULATION Z Which regulation prohibits kickbacks? RESPA Which regulations requires the lender to cancel PMI when the loan reaches 78% LTV? HPA - Homeowners Protection Act Which regulation prohibits fee splitting? RESPA Regulation X is the letter used to describe which Law? RESPA RESPA is the acronym used to describe which law? Real Estate Settlement Procedures Act What type of mortgage requires a non-refundable funding fee? VA Loan What is the provision in a mortgage enabling a lender to demand full repayment if the borrower DEFAULTS on the loan? Acceleration Clause What is the provision in a mortgage enabling a lender to demand full repayment if the borrower TRANSFERS the loan? Alienation Clause What does CFPB stand for? Consumer Financial Protection Bureau What two laws created the CFBP? Dodd Frank Act and Consumer Finance Protection Act Which regulations is designed to help meet the Credit Needs of the Communities in which it operates? CRA - Community Reinvestment Act Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report? 90 Under ECOA rules and regulations, how many days does the lender have to provide a copy of an appraisal report, once requested by the borrower? 30 If a loan application is APPROVED, Under ECOA rules and regulations, when MUST a copy of the appraisal be provided to the borrower? 3 business days Conforming Loans follow the guidelines of which regulators? Fannie Mae and Freddie Mac Which regulation requires the lenders to "BE EQUAL" when extending credit to borrowers? ECOA - Regulation B How old must a borrower be to qualify for a Reverse Mortgage? 62 years old Which regulation has the primary function of preventing Identity Theft? FACT Act Which regulation has SECTION 114 Rules? FACT Act Which regulation requires the creditor to verify the VALIDITY of any change of address received? SECTION 114 of the FACT Act What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property? TENURE Method What is the fraud scheme where a borrower uses someone else's name to purchase the property, but that person WILL NOT be living at the property? Straw Borrower What government lender "insures" mortgages"? FHA What government lender "guarantees" mortgages? VA Loans What government lender loans money to fund purchases in rural areas? USDA/Dept. of Argriculture What is the value remaining in property after all liens and debts have been paid? Equity A borrower is refinancing his home. How much time does Reg Z give him to change his mind? 3 days Which Regulation established the 3-day right of recession rule? TILA/REG Z Redlining is part of which regulation/Law? Fair Housing Act Blockbusting is part of which regulation/Law? Fair Housing Act Steering is part of which regulation/Law? Fair Housing Act Trying to convince a homeowner to SELL his home by implying that another race/ethnicity is moving in the neighborhood is called? Blockbusting/panic selling Trying to convince a homeowner to PURCHASE in a particular neighborhood based on his race, religion or ethnicity is called? STEERING Refusing to make loans on a property in a certain neighborhood for discriminatory reasons is called? Redlining What does HOEPA stand for? Home Ownership and Equity Protection Act HOEPA Loans are part of which larger regulation? Reg Z/Tila High Cost Loans are part of which larger regulation? Reg Z/Tila High Priced Loans are part of which larger regulation? Reg Z/Tila Section 32 Loans are part of which larger regulation? Reg Z/Tila Section 35 Loans are part of which larger regulation? Reg Z/Tila MDIA ACT is part of which larger regulation? Reg Z/Tila Mortgage Disclosure Improvement Act is part of which larger regulation? Reg Z/Tila What is another name for Annual Percentage Rate? Effective Rate What is another name for Interest Rate? Note Rate or Nominal Rate PITI divided by Gross Monthly income is referred to as what? Housing Ratio or Front-End DTI PITI + monthly debt divided by Gross Monthly income is referred to as what? Total Obligation Ration - Back-end Ratio How long must TILA Disclosures be kept? 2 years for general TILA disclosure 3 3 years for the Loan Estimate 5 years for the Closing disclosure What is the maximum amount of time that NEGATIVE info can remain on a credit report? 7 years What is the maximum amount of time that a bankruptcy can remain on a credit report? 10 years Which law/regulations states that a Bankruptcy can only remain on your credit for a MAX of 10 years? FCRA - Fair Credit Reporting Act - Reg V Which law/regulations states that negative information can only remain on your credit for a MAX of 7 years? FCRA - Fair Credit Reporting Act - Reg V Which law allows a consumer who has had her credit card used by an identity thief to place a credit freeze on her credit report? FACT ACT Which law requires creditors to TRUNCATE debit and credit card info on receipts? FACT ACT Which regulation states that loan officers secure and dispose of borrower's sensitive credit information? FACT ACT Which regulation states that if a borrower is denied credit, he can receive a FREE copy of his credit report? FCRA - Fair Credit Reporting Act REG V Which regulation states that if a borrower is unemployed, he can receive a FREE copy of his credit report? FCRA - Fair Credit Reporting Act - Reg V Which regulation states that if a borrower is on SSI or Disability, he can receive a FREE copy of his credit report? FCRA - Fair Credit Reporting Act - Reg V Which regulation states that if a borrower has been the victim of fraud, he can receive a FREE copy of his credit report? FCRA - Fair Credit Reporting Act - Reg V Which regulation states that a borrower can receive a FREE copy of his credit report once a year? FACT Act During the loan process, if you ask a a borrower "Are you single . . . ." What law are you violating? ECOA - Regulation B Which regulation states that the only correct way to ask about a borrower's marital status is: are you married, unmarried or separated? ECOA - Regulation B