Federal Law - Credit & information
Which of the following gave the FTC the authority to create the do not call registry?
Telemarketing consumer fraud and abuse prevention act (telemarking Act)
The following data can be found in an HMD a file except
ARM index
According to the FCRA Which of the following must be included in the adverse action notice
A specific contact information for the credit reporting agency
Terms or definitions of ECOA
Adverse action, correct of action, discriminate, discouragement, prohibited bases, self testing, tester.
BCFP
Bureau of Consumer Financial Protection.
Which law was an acted to regulate the use of consumer credit reports?
FCRA
What is the difference between FCRA and FACTA
FCRA Promotes accuracy and privacy of credit report information while FACTA Allows borrowers to receive documentation of their actual credit score
How long after a loan closure may end and mellow contact a former client without consulting the do not call registry?
18 months
Under ECOA When is the latest by which a lender can make a decision to underwrite a mortgage
30 days after receiving the application
Under ECOA, When is the latest by which a lender can make a decision to underwrite a mortgage
30 days after receiving the application
AN MLO receives a call from a former clients they discuss loan options, the applicant decided to wait. To ensure compliance with DNCIA the MLO should
90 days
Which depository institution would not have to report HMDA. Data ?
A credit union with 90 purchase loan origination's the preceding calendar year. And with year end assets of 8 million
When a Lender rejects an applicant, which is one item that must be provided to the applicant
A description of how to appeal the decision
What is the LAR
A format that mortgage lender is used to send mortgage applicants information to FFIEC ( Federal financial institutions examination council)
Which of the following is an example of a red flag
A notice of address discrepancy in response to a request for a credit report
What is the difference between FCRA and FACTA Amendment
FCRA promote accuracy and privacy of credit reports information while FACTA Allows borrowers to receive documentation of their actual credit score
A team of professionals was tasked with creating activities to address the redlining rules. Which of the following is a good example
An automatic email or other electronic notification when charges appear on a check card from outside The users home state
A team of professionals was tasked with creating activities to address the red flag rules. Which of the following is a good example?
An automatic email or other electronics notification when charges appear on a check card from an area outside the users home state
DNCIA
And acted in 2003 established I do not call directory
Which one of the following data is not required on an HMDA file
Appraisal number
Metropolitan Statistical Area (MSA)
Area consisting of both large population nucleus an adjacent communities that have high degree of economic and social integration with that nucleus they are composed of entire countries or community Equivalents.
laws and goals a government follows or pursues
Arise from violations of rights, designed to protect the rights of market participants, discrimination in the extension of credit and use of credit information, privacy and identity theft protection
Penalties
Liability for punitive damages is limited to $10,000 in an individual action and the lesser of $500,000 or 1% of the credit tors net worth in class action
Which of the following is not an exception to the do not call list
Call's for the purpose of debt collection
Which of the following is allowed under the Tele marketing rule
Calling a consumer at 8 AM in the consumers time zone
Which of the following is allowed under the Tele marketing rule?
Calling a consumer at 8 AM in the consumers time zone
Usually the decision to deny an application was based on the following reasons
Credit, employment status, income, residents, insurance or guaranteed or purchased denied by
Which of these is not an example of uses of HMDA data
Determining the impact that has resulted from lending through nonprofit institutions
Which of the following laws Was not implemented in part to help stem discrimination in mortgage lending?
DNCIA
An MLO called a married couple about the recent application with a different lender and offered a better option for this situation. The couple responded that there is contacting them was illegal since they exercise there DNCIA. What is DNCIA?
Do not call Implementation act to protect the choice of consumer regarding solicitation calls
FCRA (Fair Credit Reporting Act) & FACTA
Enacted in 1970 and 2003, addressed proper procedures For retrieval, evaluation, storage and disposal of loan applicant credit information
ECOA
Enacted in 1974 implemented by regulation B
Red Flags Rule
Enacted in 2000 for as an amendment to FCRA/FACTA , Standards for professional institutions to implement in order to prevent identity theft
Reg B
Equal credit opportunity
How often must a Tele marketing business or individual check the do not call registry
Every 31 days
Reg V
Fair credit reporting
How long does the national do not call registry retain a consumer's phone number
Five years as long as the number is not disconnected or reassigned prior to five years
LAR Loan application register
Format that has been prescribed for lending institutions to report HMDA Data to FFIEC. Computer generated reports must conform to the format of the LAR
According to HMDA, it is optional to report which of the following
HELOCs. For Home-improvement
Reg c
Home Mortgage Disclosure Act
What does HMDA Stand for
Home Mortgage Disclosure Act
HMDA (Home Mortgage Disclosure Act)
I Stabley should requirements for lenders to submit a mortgage applicants dad up to the government. Enacted in 1975 implemented by regulation C
When is the notice of right to receive appraisal report given
It is due at the Time of notice of action taken
Loan program guidelines are often specific to targeted MSAs what is an MSA
Metropolitan statistical area, a population of communities with high degree of economic and social integration
Reg N
Mortgage Acts and practices - advertising
Reg O
Mortgage Assistance relief services
A mortgage processor asked about the residency of immigration status of an applicant to complete the 1003 accurately. Has the processor violated any federal guidelines?
No, it was except a bowl to ask about residency and immigration status
Which of the following provides consumer protection against unwanted solicitation
National do not call registry
A Lender Is reviewing a credit report and observes several medical collections. Should the Lender seek more information regarding the applicants health status to determine the consumers ability to pay?
No, any health status information cannot be used to determine credit eligibility only the financial impact of medical collections
A lender is reviewing a credit report and observes several medical collections. Should the lender seek more information regarding the applicants health status to determine the consumers ability to pay
No, any health status information cannot be used to determine credit eligibility, only the financial impact of the medical collections
A mortgage processor asked about the residency and immigration status of an applicant to complete the 1003 accurately. Has the processor violated any guidelines?
No, it was except a bowl to ask about residency and immigration status
An applicant states it is illegal for a lender to request a credit report as this is discriminatory and refuses the request. He threatened legal action if the application is denied due to his refusal. Is this an accurate interpretation of federal guidelines?
No, while the applicant can choose not to provide his credit report, the lender may deny the loan and the absence of credit report can be the reason
What is an adverse action notice as stated in FCRA
Notice to the borrower when the lender has denied the bar is loan application
What are red flags?
Patterns, practices and specific activities that could indicate identity theft
What are red flags
Patterns, practices in specific activities that could indicate identity Theft
Reg P
Privacy of Consumer Financial Information
CFPB (Consumer Financial Protection Bureau)
Protects consumers financial products
According to FACTA How must Linders in form applicants of their right to dispute incorrect credit information?
Provide a disclosure about 10 applicants right to dispute credit agency information
Reg X
RESPA (Real Estate Settlement Procedures Act)
Before a Lender Retrieves And applicants credit score they must do which of the following
Receive the applicants approval
HMDA Contributes to the mortgage regulatory process by establishing?
Requirements for sending applicant data to the government
The FTC (Federal Trade Commission) Disposal rule?
Requires the establishment of policies and procedures governing document disposal
The FTC Disposal rule?
Requires the establishment of policies and procedures governing document disposal
Reg G
S.A.F.E Mortgage Licensing Act- Federal Registration of Residential Mortgage Loan Originators
Reg H
S.A.F.E. Mortgage Licensing Act-State Compliance and Bureau Registration System
Which of the following is an appropriate method for disposing consumer report information
Shredding
BCFP Regulates depository and non-depository institutions in three ways
Supervision, examination and enforcement
Which of the following gave the FTC the authority to create a do not call registry?
Tele marketing consumer fraud and abuse prevention act, Tele marketing act
CFPB (Consumer Financial Protection Bureau)
The Dodd-Frank Wall Street Reform consumer protection Act of 2010, the mission of CFPB is to protect consumers from Unfair, deceptive and abusive practices, It will also regulate depository and non-depository institutions through supervision examination and enforcement
And MLO can request which of the following details from an applicant
The ages of dependence
An MLO Can request which of the following details from an applicant
The ages of dependents
And MLO can request which of the following details from an applicant
The ages of the dependents
Which of the following is a legitimate reason for a creditor To refuse credit
The applicant is not a US citizen
What organization in force the red flag rules
The federal trade commission, bank regulatory agencies of the national credit administration
HMDA Was proposed as a response to which of the following
The need for more mortgage data to help the government identify underserved population's
HMDA What is proposed as a response to which of the following
The need for mortgage of data to help the government identify underserved populations
Which of the following scenarios can result in dumpster diving and consequently identity theft?
The practice of making private information available through irresponsible disposal of customer information
A description of 26 red flags is available in
The red flag Rules
A description of 26 red flags is available in ?
The red flag rule
And MLO called a married couple about the recent application with a different lender the and offered a better option for their situation. The couple responded that his contacting them was illegal since they exercise their DNCIA rights. What is this ?
They do not call implementation act to protect her the choice of the customer regarding solicitation calls
What is the purpose of ECOA
To make credit applications equally available and to allow the request of credit without fear of discrimination of protected classes
What is the purpose of ECOA
To prevent discrimination in granting of credit
What is the purpose of ECOA?
To prevent discrimination in granting of credit
Why is it important to identify red flags early in the application process?
To protect consumers from becoming victims of fraud and help mitigate financial losses for lenders
Reg Z
Truth in Lending
When must a Lender send the notice of action item
Within 30 days of receiving a completed application
Metropolitan division MD
a Metropolitan division is a subset of an MSA having a single core with the population of 2.5 million or more
