Module 8 Exam

An MLO hired a third-party independent processing company to perform processing functions on their loan files. Loan files for applicants who were not approved were disposed of in a dumpster at the back of the processing company's office. The processing company violated a. FACTA. b. RESPA. c. HMDA. d. ECOA.

a.

The FACT Act prohibits businesses from printing more than _____ digits of any customer's credit/debit card number or expiration date on any receipt provided to the cardholder at the point of sale or transaction. a. five b. six c. three d. four

a.

Under the GLB Act, regulated by Regulation P, customers must receive a financial institution's privacy notice _______________ for as long as the customer relationship lasts. a. once every year b. monthly c. one time d. every two years

a.

According to the FRCA, all of the following would have a business need for access to credit reports EXCEPT a(n) a. mortgage loan originator. b. doctor's office. c. employer performing a background check for a potential employee. d. landlord considered renting an apartment.

b.

Even if the consumer's phone number is on the National Do Not Call Registry, a company may call a consumer for up to __________ after the consumer makes an inquiry or submits an application to the company. a. 18 months b. 3 months c. No calls can be made to a number on the DNC Registry d. 6 months

b.

The Fair Credit Reporting Act does NOT allow a consumer to request a a. freeze on a credit report. b. credit score disclosure statement from a creditor. c. dispute of inaccurate or incomplete information of a report. d. copy of an adverse action notice.

b.

The National Do Not Call Registry regulations require companies to update they national customer lists every a. 15 days. b. 31 days. c. 6 months. d. year

b.

According to Regulation V, a creditor is define as a. the title insurance agency. b. the agency that maintains, gathers, and scores information for credit reports. c. someone who grants credit. d. someone who is obtaining credit.

c.

The USA PATRIOT Act seeks to a. ensure that consumer credit information is accurately maintained and recorded. b. regulate credit bureau reporting obligations. c. prevent the funding of terrorist operations. d. protect consumers from identity theft.

c.

The consumer reporting agency must correct or delete any data EXCEPT information that is a. inaccurate. b. incomplete. c. disputed. d. unverifiable.

c.

The primary purpose of the Fair Accurate Credit Transactions Act (FACT Act) is to protect consumers from a. predatory lending. b. credit agency fraud. c. identity theft. d. mortgage fraud.

c.

Which law includes Red Flags Rules that require financial institutions and creditors to implement procedures to protect customer identity? a. Gramm-Leach-Bliley Act (The Financial Privacy Act) b. Fair Credit Reporting Act c. Fair and Accurate Credit Transactions Act d. Homeowners Protection Act

c.

According to the GLB Act, a person who completes a single transaction with a creditor is known as a(n) a. creditor. b. customer. c. applicant. d. consumer.

d.

For how many months after a loan closes may a mortgage loan origination call to solicit new business from a customer whose phone number is on the National Do Not Call Registry? a. 3 months b. No calls can be made to a number on the Registry. c. 6 months d. 18 months

d.

The FCRA mandates that a credit reporting bureau remove a consumer's Chapter 7 bankruptcy record after a. 7 years. b. credit has been re-established for over five years. c. dismissal of the case by a Federal Bankruptcy Court. d. 10 years.

d.

The Fair and Accurate Credit Transactions Act regulates all of the following EXCEPT a. truncation of credit card numbers on a credit card receipt. b. a credit freeze registered with a credit bureau. c. fraud alerts placed on a credit report. d. an adverse action notice to the borrower who is turned down for a loan.

d.

The USA Patriot Act requires lenders and banks to create and maintain programs that a. communicate known terrorist to employees. b. establish a do not call registry c. track customer accounts for all overseas transactions. d. verify their customers' identity.

d.

The _________________________ entitles consumers access to the same credit information that lenders use in making their credit decisions. a. Fair and Accurate Credit Transactions Act b. Gramm-Leach-Bliley Act c. USA Patriot Act d. Fair Credit Reporting Act

d.