CC-FEDERAL MORTGAGE-RELATED LAWS

Which cost would be included in the APR calculation on the closing disclosure forms? A-escrow deposit B-mortgage insurance C-down payment D-pest inspection fee

B-mortgage insurance The APR reflects the total cost to borrow money. Mortgage insurance is one of those costs, but the others are merely costs associated with buying property, not necessarily with a mortgage, and so would not be part of the APR calculation shown on the closing disclosure.

What financial information is NOT required to be listed on the LE? A-total finance charges B-name of the entity that will service the loan C-APR D-loan amount

B-name of the entity that will service the loan The name of the entity servicing the loan is not a required disclosure in the LE Statement. The other information is required.

The Truth in Lending Act (TILA) was enacted to A-enable banks to sell mortgages more easily B-prevent abuses in consumer credit cost disclosure C-put procedures in place for handling settlement D-delay closings

B-prevent abuses in consumer credit cost disclosure TILA requires lenders to disclose consumer credit costs in a uniform manner to promote informed use of consumer credit, enabling them to compare credit costs and shop around for the best credit terms.

When a consumer chooses a provider that was on the Written List of Providers for a service, that service is listed as: A-service borrower did shop for B-services borrower did not shop for C-other D-title and government fees

B-services borrower did not shop for When a consumer chooses a provider that was on the Written List of Providers for a service, that service is listed as Services Borrower Did Not Shop For in the Closing Disclosure Loan Costs table.

A lender that provides only which service would NOT be required to forward statistical information under the Home Mortgage Disclosure Act? A-home equity loans B-first mortgages C-second mortgages D-financing for multi unit housing with at least 5 units

D-financing for multi unit housing with at least 5 units The Home Mortgage Disclosure Act only applies to one- to four-family housing. Five units would be considered commercial financing and is not subject to HMDA.

Which factor is NOT considered when determining "average charge" calculations for settlement services? A-type of loan B-geographic area C-period of time before settlement D-size of loan

D-size of loan The size of the loan should never be a consideration for average charge calculations for settlement services.

What is the only website authorized by the FTC from which consumers can get their free credit report each year? A-www.creditreport.ftc B-www.freecreditreport.com C-www.anualcreditreport.gov D-www.annualcreditreport.com

D-www.annualcreditreport.com The only vendor authorized by the FTC and the credit reporting agencies under the Fair and Accurate Credit Transactions Act to provide this service for free is www.annualcreditreport.com.

What regulation forbids the seller to require the use of a particular title company as a condition of sale? A-Regulation X B-Regulation C C-Regulation Z D-Regulation B

A-Regulation X

The Real Estate Settlement Procedures Act does NOT apply to A-loans used to finance the purchase of 25 acres or more or vacant land B-property improvement loans C-purchase loans that are secured by a first mortgage on the property D-loans involving lenders who invest more than$1 million in residential mortgages

A-loans used to finance the purchase of 25 acres or more or vacant land RESPA does not apply to loans used to finance the purchase of 25 acres or more, vacant land, or transactions where the buyer assumes, or takes subject to, an existing first-lien loan.

TILA requires all of this financial information to be reflected on the closing disclosure EXCEPT the A-note rate B-total of payments C-amount financed D-finance charges

A-note rate The note rate (the rate used to amortize the loan) is not required to be listed on the closing disclosure, however the APR is required.

What loan has a three business-day rescission period? A-owner-occupied refinance B-vacant land C-non-owner occupied residential D-commercial

A-owner-occupied refinance On an owner-occupied residential refinance (and on a second mortgage), there is always a three-business day right of rescission. During that time, the borrower can change his mind and cancel the transaction.

Which federal law requires financial institutions to file reports of cash transactions exceeding a daily aggregate amount of $10,000? A-RESPA B-BSA/AML C-SAFE D-TILA

B-BSA/AML It is the Bank Secrecy Act/Anti-Money Laundering Act that includes this requirement.

On the closing disclosure form, the date issued is the: A-funding rate B-date the form is delivered to the consumer C-Date the loan is scheduled to close D-Date the form is prepared by the creditor

B-date the form is delivered to the consumer Date Issued is the date the Closing Disclosure is delivered to the consumer.

Which data is a lender NOT required to record in order to comply with HMDA? A-HOEPA status B-familial status C-applicant gross income D-loan decision

B-familial status HMDA is not concerned with an applicant's familial status, but does require lenders to note the other types of information, in addition to other categories.

Which act requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application? A-Real Estate Settlement Procedures Act B-Community Reinvestment Act of 1977 C-Federal Fair Housing Act D-Equal Credit Opportunity Act

D-Equal Credit Opportunity Act The Equal Credit Opportunity Act or ECOA requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application.

Which disclosure is required by TRID and itemizes potential closing costs for the borrower? A-Settlement Service Providers B-HUD Settlement Cost Booklet C-TIL Statement D-Loan Estimate

D-Loan Estimate TRID requires lenders to provide, in a clear and concise form, a Loan Estimate (LE) of the amount of, or range of, settlement charges the borrower is likely to pay.

Which federal act created the Consumer Financial Protection Bureau? A-Bank Secrecy Act/Anti-Money Laundering Act B-Fair Credit Reporting Act C-Dodd-Frank Act Gramm-Leach Bliley Act

C-Dodd-Frank Act Title X of the Dodd-Frank Act creates the Consumer Financial Protection Bureau (CFPB) as an independent entity with rule-making and enforcement authority over many consumer financial laws.

Under which federal legislation does the consumer have the right to receive a copy of the appraisal report on a dwelling that is to be used as collateral for a loan? A-RESPA B-HMDA C-ECOA D-TILA

C-ECOA Since the appraised value and the property condition are considered in the approval process, the consumer has the right to inspect the document being used to evaluate these facts, according to the Equal Credit Opportunity Act.

Which federal regulation limits the length of time that adverse collection information may appear in a consumer's credit report? A-Regulation Z B-Regulation B C-Regulation V D-Regulation C

C-Regulation V The Fair Credit Reporting Act, or Regulation V, limits the number of years that negative credit information can appear in a credit report.

What's another name for Regulation Z? A-ECOA B-RESPA C-TILA D-Title VIII

C-TILA Regulation Z is also referred to as the Truth in Lending Act (TILA).

Under Regulation Z, which advertisement would trigger the requirement to disclose all finance charges and the true APR? A-no money down B-stop paying rent C-monthly payments under $700 D-interest rates at an all-time low

C-monthly payments under $700 Regulation Z requires that once you state any type of credit terms in advertising, such as an exact interest rate or monthly payment, you must disclose all finance charges and total annual percentage rate (APR).

The final rule on higher-priced loans (as defined under HOEPA regulations) requires an originating lender to establish and maintain an escrow (impound) account for property taxes and insurance for a minimum of ___ years. A-11 B-7 C-3 D-5

D-5 The final rule which takes effect June 2013 requires the originating lender to establish and maintain an escrow (impound) account for property taxes and insurance (hazard, flood, mortgage, etc.) for a minimum of five years.

Which federal law is NOT primarily intended to address issues of privacy and identity protection relating to credit? A-FACT Act B-Gramm-Leach-Bliley C-FCRA D-ECOA

D-ECOA The Equal Credit Opportunity Act is primarily an anti-discrimination law. The other laws deal directly with credit reporting and protection of consumer financial records and identity.

What data is NOT part of the data collected for HMDA monitoring? A-sex B-race C-national origin D-family size

D-family size Family size is not part of the information needed for HMDA monitoring.