Dodd-Frank Act

Which of the following is the best definition of Unfair per the Dodd-Frank? Activities that will likely deceive the consumer into making poor decisions Activities that will not cause injury or harm to the consumer, especially if that harm can be avoided Activities that can cause injury or harm to the consumer, especially if that harm cannot be avoided Activities that involve the MLO taking advantage of the consumer's lack of knowledge or trust in their position in order to confuse the consumer

Activities that can cause injury or harm to the consumer, especially if that harm cannot be avoided

Which of the following is most likely a UDAAP as defined and outlawed by the Dodd-Frank Act? An MLO persuades a client to obtain a risky loan product by continuously emphasizing that they are a professional and know more about the industry and products than the client. An MLO clearly explains the risks and benefits to two loan products and the client choses the riskier product. An MLO prices out multiple loan options for a client, however the client ultimately decides to use a different mortgage company An MLO discloses all the initial disclosures within the required timeframes

An MLO persuades a client to obtain a risky loan product by continuously emphasizing that they are a professional and know more about the industry and products than the client.

In 2012, the Dodd-Frank Act transferred most of the federal regulation and enforcement to which agency? CFPB Federal Reserve HUD FTC

CFPB

What does the acronym CFPB stand for? Consumer Financial Processing Bureau Customer Financial Protection Bureau Customer Financial Processing Bureau Consumer Financial Protection Bureau

Consumer Financial Protection Bureau

Which regulatory authority was created by the Dodd-Frank Act? Federal National Mortgage Association Fair Housing Administration Consumer Financial Protection Bureau Department of Housing and Urban Development

Consumer Financial Protection Bureau

UDAAPs are prohibited and outlawed as part of which federal law? Dodd-Frank Act Gramm-Leach-Bliley Act USA Patriot Act FACTA

Dodd-Frank Act

Which of the following should be considered when determining if an action is or is not a UDAAP? Does the action cause financial benefit to the consumer? Does the action cause increased awareness for the consumer? Does the benefit to the consumer outweigh any financial harm? Does the benefit to the consumer outweigh any potential penalties and fines?

Does the benefit to the consumer outweigh any financial harm?

In which ways did the Dodd-Frank Wall Street Reform and Consumer Protection Act improve consumer protection laws? Created the secondary market as a method for increasing the flow of money in the lending industry Outlawed subprime mortgages Repealed some of the Glass-Steagall Act's restrictions around Investors interacting with mortgage lending Establishing the CFPB and defining and outlawing UDAAPs

Establishing the CFPB and defining and outlawing UDAAPs

Which of the following does the Dodd-Frank Act apply to? Select all that apply. Financial and Investment Advisors Financial institutions Real Estate Agents Appraisers

Financial and Investment Advisors Financial institutions Appraisers

Which of the following best describes an exception to the concept of a behavior being unfair as defined by Dodd-Frank's UDAAPs? If the benefit of the act outweighs the injury caused If the consumer is not interested in continuing with the loan process If the benefit of the act outweighs the costs incurred If the consumer is not knowledgeable about the mortgage industry

If the benefit of the act outweighs the injury caused

Which of the following best describes the main purpose of the CFPB? Protect lenders from consumer fraud Protect lenders from industry fraud Protect consumers from deceptive and unethical financial practices Protect consumer from over-regulated mortgage lenders

Protect consumers from deceptive and unethical financial practices

An action is considered a UDAAP if which of the following are true? Select all that apply. The action causes financial harm to the consumer The benefit to the consumer doesn't outweigh any financial harm The action is misleading or deceptive The action takes advantage of the consumer's lack of expertise

The action causes financial harm to the consumer The benefit to the consumer doesn't outweigh any financial harm The action is misleading or deceptive The action takes advantage of the consumer's lack of expertise

Which of the following is most likely a UDAAP as defined and outlawed by Dodd-Frank? The MLO recommends the consumer buys down their rate, paying more at closing for a lower rate and long-term savings The consumer falsifies bank statements to qualify for a better product than they would otherwise qualify for The consumer qualifies for three different loan products, but the MLO only offers them one The MLO recommends that the consumer apply for a balloon mortgage

The consumer qualifies for three different loan products, but the MLO only offers them one

Which of the following financial markets was the Dodd-Frank Act enacted to address economic concerns? Local student loan originators Offshore banks The New York Stock Exchange The mortgage industry

The mortgage industry

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was enacted in response to which of the following? The near collapse of the European financial system The near collapse of the world's financial system The backlash of the Gramm-Leach-Bliley Financial Services Modernization Act The backlash of the American Dream Down Payment Initiative

The near collapse of the world's financial system

Why is Dodd-Frank's definition of UDAAPs intentionally broad? To increase investigations into MLOs who have a history of discrimination To increase MLO accountability pertaining to avoiding discrimination of borrowers To avoid any loopholes and allow for a higher level of accountability in the financial marketplace To avoid investigations into ethical concerns in the financial marketplace

To avoid any loopholes and allow for a higher level of accountability in the financial marketplace

Which of the following best describes the overall reason the CFPB was established? To consolidate the federal regulatory authority for consumer protections of federal banking agencies To ensure mortgage brokers are regulated within the financial marketplace To increase the amount of MBS being sold in the secondary market, therefore increasing lender availability to funds To reduce the amount of regulation happening within the marketplace in the future

To consolidate the federal regulatory authority for consumer protections of federal banking agencies

What does the acronym UDAAP stand for? Unfair, deceptive or abusive acts or practices Unfair, deceptive or accidental acts or practices Uniform, deceptive or abusive acts or practices Unfair, deceiving or accidental acts or practices

Unfair, deceptive or abusive acts or practices

Which of the following situations would be prohibited under UDAAPs Your client decides to back out of the mortgage at the closing table, prior to signing any final disclosures. Your client has expressed that they would prefer an ARM and you move forward with the MLO process. Your client has expressed that they would prefer to not have an ARM as they are uneasy about the changing rate and payment, however you convince your client that an ARM is the best option anyhow. Your client previously had a balloon mortgage and asks for another. You inform your client you do not offer balloon mortgages currently and instead offer them an ARM, which also meets their needs and goals.

Your client has expressed that they would prefer to not have an ARM as they are uneasy about the changing rate and payment, however you convince your client that an ARM is the best option anyhow.