NMLS SAFE Exam Preparation with
solutions provided
RESPA ✅✅This Act, enacted in 1974, is Regulated by the CFPB. The most frequent
violations of the act are Section 8 violations.
Section 8 ✅✅The section of RESPA that prohibits fee splitting, markups, and
unearned "things of value" from "agreements or understandings" between referral
sources.
Section 6 ✅✅The section of RESPA that outlines the service transfer of loans.
Section 10 ✅✅The section of RESPA that outlines the escrow requirements for
mortgage loans.
Goodbye letter ✅✅This communcation must be sent by the releasing servicer to the
borrower at least 15 days before the date of release.
Welcome Letter ✅✅This communication must be sent by the receiving servicer to the
borrower within 15 days of the transfer of service/receipt of the loan.
Regulation X ✅✅The designation for RESPA
Regulation B ✅✅The designation for the ECOA
Regulation Z ✅✅The designation for the TILA
Regulation Z (Section 32) ✅✅The designation for the HOEPA
TILA & HOEPA ✅✅The two regulations designated by Regulation Z
Regulation C ✅✅The designation for HMDA
Regulation V ✅✅The designation for FCRA, FACTA, & the FTC Red Flags Rule
CFPB but used to be HUD ✅✅The regulator of RESPA
The CFPB ✅✅The regulator for TILA, HOEPA, & HMDA
FTC and CFPB ✅✅Who enforces the FCRA?
FTC ✅✅Who enforces the FACTA?
, FTC ✅✅Who enforces the Red Flags Rule?
FTC ✅✅Who enforces the ECOA?
1974 by congress ✅✅What year was RESPA enacted in and was implemented by
who?
1974 by the federal reserve board ✅✅What year was the ECOA enacted in and
implemented by who?
1968 by the federal reserve board ✅✅What year was the TILA enacted in and
implemented by who?
1994 by congress ✅✅What year was HOEPA enacted in and implemented by who?
1975 enacted by congress, 2011 implemented by federal reserve board ✅✅What
year was HMDA enacted in and implemented by who?
1970 by congress ✅✅What year was FCRA enacted in and implemented by who?
2003 by congress ✅✅What year was FACTA enacted in and implemented by who?
2008 ✅✅What year was the FTC Red Flags Rule enacted in?
RESPA is not applicable to: ✅✅loans for: >25 acres
business or commercial use
agricultural use
temporary or bridge loans
Vacant land (with no plan to build w/in 2 yrs)
Covered by RESPA ✅✅Construction loans are ________; because they are not
temporary.
Settlement Service ✅✅Any service, the ultimate goal of which is the consummation of
a mortgage transaction.
Thing of value ✅✅anything with a tangible use and monetary value (a pen or
highlighter has both, while an advertisement/flyer only has monetary value)
How many pieces of info constitute an application, and what are they? ✅✅The 6
pieces of info are:
The borrower's name
Their monthly income
Their SSN
solutions provided
RESPA ✅✅This Act, enacted in 1974, is Regulated by the CFPB. The most frequent
violations of the act are Section 8 violations.
Section 8 ✅✅The section of RESPA that prohibits fee splitting, markups, and
unearned "things of value" from "agreements or understandings" between referral
sources.
Section 6 ✅✅The section of RESPA that outlines the service transfer of loans.
Section 10 ✅✅The section of RESPA that outlines the escrow requirements for
mortgage loans.
Goodbye letter ✅✅This communcation must be sent by the releasing servicer to the
borrower at least 15 days before the date of release.
Welcome Letter ✅✅This communication must be sent by the receiving servicer to the
borrower within 15 days of the transfer of service/receipt of the loan.
Regulation X ✅✅The designation for RESPA
Regulation B ✅✅The designation for the ECOA
Regulation Z ✅✅The designation for the TILA
Regulation Z (Section 32) ✅✅The designation for the HOEPA
TILA & HOEPA ✅✅The two regulations designated by Regulation Z
Regulation C ✅✅The designation for HMDA
Regulation V ✅✅The designation for FCRA, FACTA, & the FTC Red Flags Rule
CFPB but used to be HUD ✅✅The regulator of RESPA
The CFPB ✅✅The regulator for TILA, HOEPA, & HMDA
FTC and CFPB ✅✅Who enforces the FCRA?
FTC ✅✅Who enforces the FACTA?
, FTC ✅✅Who enforces the Red Flags Rule?
FTC ✅✅Who enforces the ECOA?
1974 by congress ✅✅What year was RESPA enacted in and was implemented by
who?
1974 by the federal reserve board ✅✅What year was the ECOA enacted in and
implemented by who?
1968 by the federal reserve board ✅✅What year was the TILA enacted in and
implemented by who?
1994 by congress ✅✅What year was HOEPA enacted in and implemented by who?
1975 enacted by congress, 2011 implemented by federal reserve board ✅✅What
year was HMDA enacted in and implemented by who?
1970 by congress ✅✅What year was FCRA enacted in and implemented by who?
2003 by congress ✅✅What year was FACTA enacted in and implemented by who?
2008 ✅✅What year was the FTC Red Flags Rule enacted in?
RESPA is not applicable to: ✅✅loans for: >25 acres
business or commercial use
agricultural use
temporary or bridge loans
Vacant land (with no plan to build w/in 2 yrs)
Covered by RESPA ✅✅Construction loans are ________; because they are not
temporary.
Settlement Service ✅✅Any service, the ultimate goal of which is the consummation of
a mortgage transaction.
Thing of value ✅✅anything with a tangible use and monetary value (a pen or
highlighter has both, while an advertisement/flyer only has monetary value)
How many pieces of info constitute an application, and what are they? ✅✅The 6
pieces of info are:
The borrower's name
Their monthly income
Their SSN
