NMLS

Under the FCRA law:

negative information more than 7 years old may not be reported employers must obtain consent from the customer before receiving the report access to the credit file is limited to those recognized by FCRA

How many months after a business relationship has been established are you allowed to call your customer if they have thier phone number listed on the Do-Not-Call Registry?

18-month period runs from the date of the last payment, transaction, or shipment between the consumer and the seller

A prepaid Finance Charge is:

Any Finance Charge that is paid separately to the financial institution or to a third party, in cash or by check, before or at closing, settlement, or consummation of a transaction A discount point or points paid by the borrower An application fee collected at the time of application

The law that requires a notice of action letter is

ECOA and Regulation B have specific requirements for adverse action notices. The required elements, include that the notice provide the creditor's name and address, a statement of the action taken, a list of the principle and specific reasons for the adverse action, and the ECOA notice

FACTA

FACTA is an amendment to the Fair Credit Reporting Act.

Which law forbids the imposition of different standards or more onerous terms for approval that could have a disparate effect on different groups of borrowers?

FHAct

When selling a home, the law that prohibits discrimination in whom the house is sold to is

FHAct (the Fair Housing Act) prohibits discrimination in housing. The primary federal regulator for the FHAct is HUD

handling and disposal of sensitive customer information

Gramm-Leach-Bliley Act The Safeguards Rule FACTA

What act helps determine if lenders are serving the housing needs of communities and assists public officials with identifying discrimination patterns?

HMDA

Incidental credit is defined by the Equal Credit Opportunity Act as

Incidental credit refers to extensions of consumer credit other than the types described in paragraphs (a) and (b) of this section:

The Fair and Accurate Credit Transactions Act:

Is an amendment to Fair Credit Reporting Act. Permits borrowers to obtain a free credit report every 12 months Initiates the Red Flags Rule

The effect of not providing a Right to Rescind to a borrower on a primary residence refinance transaction is:

It extends the rescission period from 3 days to 3 years.

The Truth in Lending Act disclosure on a Graduated Payment Mortgage will differ in what manner from a disclosure on a fully amortized fixed rate mortgage?

It will include the payment for each of the payment graduations in the Payment Schedule

Which of the following are charges always included in the computation of Finance Charge as determined by Regulation Z?

Mortgage Broker fees Loan Origination Fees Interest

ECOA requires the following disclosures

Notice of action Purpose of Equal Credit Opportunity Act Disclosure

Regulation "C" refers to

Regulation C is the regulation that puts the Home Mortgage Disclosure Act into effect.

Which agency/agencies regulate the Fair Credit Reporting Act?

The Federal Trade Commission is the primary regulator of the Fair Credit Reporting Act. However, the Fair Credit Reporting Act also specifically gives states the right to enforce the act

The requirement of disclosure of the annual percentage rate is featured in:

TILA

What does the Address Discrepancy Rule deal with or require?

That any differences in the address(es) listed in the application and the credit report be satisfactorily reconciled

The Truth in Lending Act disclosure contains four major pieces of information. Three of those are (1) the Annual Percentage Rate, (2) the Finance Charge, and (3) the Total of Payments. What is the fourth

The Amount Financed-The Annual Percentage Rate, the Finance Charge, the Amount Financed, and the Total of Payments are four pieces of information that must be "clearly and conspicuously" disclosed on every Truth in Lending Act disclosure. See the top of your TIL disclosure form.

Which of the following statements is true regarding the Section 32 Disclosure

The Commentary on Regulation Z says, "Format. The disclosures must be clear and conspicuous but need not be in any particular type size or typeface, nor presented in any particular manner. The disclosures need not be a part of the note or mortgage document.

Which Federal Law first gave the borrower the right to receive a copy of their appraisal report

The Equal Credit Opportunity Act

What law sets a time limit on how long you can have a complete application before it must be dispositioned?

The Equal Credit Opportunity Act dictates that you must inform a consumer of the disposition of their loan with 30 days of having received all of the information you have requested.

The law that was part of the 1968 Civil Rights Act is:

The Fair Housing Act (FHAct) was a part of the Civil Rights Act of 1968

Which federal law gives consumers the right to place a freeze on their credit

The Fair and Accurate Credit Transactions Act was an amendment to the Fair Credit Reporting Act which permitted states to pass laws which allow consumers to place a freeze on their credit if they suspected that they were victims of identity theft.

Which Federal agency is the prudential regulator for the Equal Credit Opportunity Act

The Federal Trade Commission regulates the Equal Credit Opportunity Act for mortgage brokers and mortgage banks which are unaffiliated with nationally or state chartered banks and savings institutions. The Federal Reserve Board actually controls Regulation B, which applies The Equal Credit Opportunity Act. However, they are not the primary regulator for mortgage brokers and mortgage bankers.

If the Annual Percentage Rate is the cost of credit expressed as a percentage of the net amount borrowed, the Finance Charge is:

The Finance Charge is computed by totaling all of the charges that a borrower is required to pay which the borrower would not have to pay if the transaction were a cash transaction. Without knowing the Finance Charge, the Annual Percentage Rate can not be computed.

Gramm-Leach-Bliley has two rules which affect most mortgage originators. They are

The Financial Modernization Act of 1999, also known as the "Gramm-Leach-Bliley Act" or GLB Act, includes provisions to protect consumers' personal financial information held by financial institutions. There are three principal parts to the privacy requirements: the Financial Privacy Rule, Safeguards Rule and pretexting provisions.

What act is Pretexting under?

The Gramm-Leach-Bliley Act

NPI stands for

The Gramm-Leach-Bliley Act (GLBA), which is also known as the Financial Services Modernization Act of 1999, provides limited privacy protections against the sale of your private financial information. A new term, "Nonpublic Personal Information

What act requires you to provide your customer with your company's privacy policy?

The Gramm-Leach-Bliley Act requires businesses to give their customers a copy of their privacy policies, which includes the option for consumers to "opt-out" of the company's information sharing policies.

Privacy notices must be sent to whom?

The Gramm-Leach-Bliley Act requires you to send your company's privacy policy to your customers.

Certain lenders are required to report data on their borrowers in order to determine how the needs of the community are being met is required by what law?

The Home Mortgage Disclosure Act (HMDA),

HOEPA

The Home Ownership and Equity Protection Act of 1994 (HOEPA) addresses certain deceptive and unfair practices in home equity lending when refinancing a mortgage or applying for a home equity installment loan. It amends the Truth in Lending Act (TILA) and establishes requirements for certain loans with high rates and/or high fees. The rules for these loans are contained in Section 32 of Regulation Z, which implements TILA, so the loans are sometimes called "Section 32 Mortgages." A loan is "covered" by the Act if it is a first mortgage and the annual percentage rate (APR) is more than 8 points higher than the rates on Treasury securities of comparable maturity (10% if the loan is a second mortgage) OR if the total fees and points payable by the consumer at or before closing equal the larger of $625 or 8% of the total loan amount.

The Red Flags Rule is based on which law?

The Red Flags Rule is based on The Fair and Accurate Credit Transactions Act

Which of the following Federal regulations requires specific data security measures?

The Red Flags Rule is designed to prevent the use of stolen information. The Privacy Rule gives consumers control over their Nonpublic Private Information. ECOA protects a consumer's rights against discrimination. The Safeguards Rule (tied to the Gramm-Leach-Bliley Act) establishes procedures to protect data you gather from customers and consumers.

The Safeguards Rule requires financial institutions to ensure the security of:

The Safeguards Rule encompasses all of the policies and procedures which financial institutions use to ensure the protection of their customers' information.

Section 32 provisions of the Truth in Lending Act are?

The Truth in Lending Act Section 32 exempts Reverse Mortgages and Open Ended credit plans, including HELOCS

Which disclosures are controlled by the Truth in Lending Act

The Truth in Lending Act requires certain disclosures to be given to consumers. Two of the disclosures are the TIL form and in a refinance transaction, the consumer's Right to Rescind.

Which of the following must be disclosed by estimated assumption example on the Truth in Lending Act disclosure on an Adjustable Rate Mortgage loan?

The index rate, the adjusted interest rate, and the resulting payment

The Truth in Lending Act requires redisclosure if the Annual Percentage Rate has changed more than 0.125% (1/8th of a percent). To determine whether redisclosure is necessary, the final APR is compared to . . .?

The most recent TIL Disclosure given to the consumer.

What is the purpose of the Truth in Lending Act?

To promote the informed use of consumer credit by requiring disclosures about its terms and cost

What act requires a borrower to properly identify themselves?

USAPA

The purpose of the Fair Credit Reporting act is:

Under the Fair Credit Reporting Act (FCRA), both the consumer reporting company and the information provider are responsible for correcting inaccurate or incomplete information in a consumer's credit report.

The development of the "Uniform Documents" was a function of which law?

When The Real Estate Settlement Procedures Act passed, Congress empowered the Department of Housing and Urban Development to develop a set of uniform documents which could be used to originate federally related mortgage loans

The Truth in Lending Act allows lenders to correct material errors in disclosures. How long does a lender have to correct those errors?

Within 60 Days of discovering the error

What are the legal consequences of failure to comply with the Red Flags Rule and/or failure to develop a written Red Flags Policy?

You may be written up by a regulator and may be liable for civil damages.

The FCRA applies to:

all credit transactions

The FCRA allows a potential borrower be allowed to request a free copy of their credit file if:

annually, under any circumstance, or at any time when they have been denied credit

The Truth in Lending Act was designed to disclose the

cost of credit

What is The Fair Credit Reporting Act:

establishes procedures for consumers to receive a free copy of their credit file annually establishes the time credit records may be retained establishes a method for disputing inaccuracies

The illegal practice of denying loans for housing in certain neighborhoods is called:

redlining

The Financial Privacy Rule was designed:

to keep peoples non-public private information from being randomly published or accessed to affect both information you collect and information you request to require a disclosure at application stating what you intend to use the information for