NCCO Exam 3 EXAM ELABORATIONS
QUESTIONS AND VERIFIED ANSWERS
2025 UPDATE | 100% SOLVED!!
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).
c. False, this requirement only applies if the credit union uses the term "fixed" in the
advertisement.
d. False, the credit union only needs to include this information on internet
advertisements. -CORRECTANSWER 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.
Lenders are required to provide a homeownership counseling disclosure, listing ten
HUD approved counseling organizations in order of proximity to the borrower's current
zip code, to applicants for which of the following types of federally-related mortgage
loans? Choose the best CORRECTANSWER.
,a. Purchase-money mortgages
b. Refinances
c. Closed-end home equity loans
d. Home equity lines of credit (HELOCs)
e. All of the above -CORRECTANSWER e. All of the above
A member applied for a $3000 personal line of credit. The credit union wants to
counteroffer the member with a $1500 line of credit. To meet its Regulation B
notification requirements, the credit union:
a. Must send the member an adverse action notice, which cannot be combined with the
counteroffer.
b. May send the member an adverse action notice combined with the counteroffer, but if
the member does not accept or does not respond to the counteroffer, the credit union
must send another adverse action notice.
c. May send the member an adverse action notice combined with the counteroffer, and
if the member does not accept or does not respond to the counteroffer, the credit union
does not need to send another adverse action notice.
d. Must send the member an adverse action notice with all counteroffers. -
CORRECTANSWER c. May send the member an adverse action notice combined with
the counteroffer, and if the member does not accept or does not respond to the
counteroffer, the credit union does not need to send another adverse action notice.
, A member has submitted a direct dispute to the credit union regarding her performance
on a credit card account. Which of the following accurately describes the credit union's
obligations?
a. The credit union does not have any obligations regarding the direct dispute because
disputes relating to a member's performance on an account are not covered by the rule.
b. The credit union must complete its investigation of the dispute within 10 days and
rep01t the result's of the investigation to the member.
c. The credit union must complete its investigation of the dispute within 30 days, report
the results of the investigation to the member and notify consumer repotting agencies if
the investigation reveals information reported was inaccurate.
d. The credit union must complete its investigation of the dispute within 30 days and
report the results of the investigation to the member. Notice to the consumer reporting
agencies -CORRECTANSWER c. The credit union must complete its investigation of
the dispute within 30 days, report the results of the investigation to the member and
notify consumer reporting agencies if the investigation reveals information reported was
inaccurate.
Which statements are true under the Regulation Z qualification and screening
requirements for mortgage loan originators? Choose the best CORRECTANSWER.
QUESTIONS AND VERIFIED ANSWERS
2025 UPDATE | 100% SOLVED!!
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).
c. False, this requirement only applies if the credit union uses the term "fixed" in the
advertisement.
d. False, the credit union only needs to include this information on internet
advertisements. -CORRECTANSWER 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.
Lenders are required to provide a homeownership counseling disclosure, listing ten
HUD approved counseling organizations in order of proximity to the borrower's current
zip code, to applicants for which of the following types of federally-related mortgage
loans? Choose the best CORRECTANSWER.
,a. Purchase-money mortgages
b. Refinances
c. Closed-end home equity loans
d. Home equity lines of credit (HELOCs)
e. All of the above -CORRECTANSWER e. All of the above
A member applied for a $3000 personal line of credit. The credit union wants to
counteroffer the member with a $1500 line of credit. To meet its Regulation B
notification requirements, the credit union:
a. Must send the member an adverse action notice, which cannot be combined with the
counteroffer.
b. May send the member an adverse action notice combined with the counteroffer, but if
the member does not accept or does not respond to the counteroffer, the credit union
must send another adverse action notice.
c. May send the member an adverse action notice combined with the counteroffer, and
if the member does not accept or does not respond to the counteroffer, the credit union
does not need to send another adverse action notice.
d. Must send the member an adverse action notice with all counteroffers. -
CORRECTANSWER c. May send the member an adverse action notice combined with
the counteroffer, and if the member does not accept or does not respond to the
counteroffer, the credit union does not need to send another adverse action notice.
, A member has submitted a direct dispute to the credit union regarding her performance
on a credit card account. Which of the following accurately describes the credit union's
obligations?
a. The credit union does not have any obligations regarding the direct dispute because
disputes relating to a member's performance on an account are not covered by the rule.
b. The credit union must complete its investigation of the dispute within 10 days and
rep01t the result's of the investigation to the member.
c. The credit union must complete its investigation of the dispute within 30 days, report
the results of the investigation to the member and notify consumer repotting agencies if
the investigation reveals information reported was inaccurate.
d. The credit union must complete its investigation of the dispute within 30 days and
report the results of the investigation to the member. Notice to the consumer reporting
agencies -CORRECTANSWER c. The credit union must complete its investigation of
the dispute within 30 days, report the results of the investigation to the member and
notify consumer reporting agencies if the investigation reveals information reported was
inaccurate.
Which statements are true under the Regulation Z qualification and screening
requirements for mortgage loan originators? Choose the best CORRECTANSWER.
