MLO

As defined and used throughout ECOA and Regulation B, _____ means a termination of an account or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts.

Adverse action

To comply with the provisions of RESPA, a lender must provide a consumer with a(n) ______ when the lender owns greater than ______ of the referred provider or has a personal interest in the provider.

AfBA Disclosure; 1%

The Federal Trade Commission's Telemarketing Sales Rule prohibits telemarketers from calling anyone

before 8am or after 9 pm

According to the GLB Act, a person who completes a single transaction with a creditor is known as a(n)____ and is entitled to receive an initial privacy notice from a financial institution only if the company shares nonpublic personal information with companies not affiliated with it, with some exceptions.

consumer

Which of the following BEST describes the purpose of the USA PATRIOT Act?

prevent the funding of terrorist operations

Due to consumer information now shared across several industries, the Gramm-Leach-Bliley (GLB) Act includes provisions in Title V to protect and regulate the disclosure of consumers' personal financial information. There are three principal parts to the Title V privacy requirements. Which of the following is NOT one of the three principal parts? Financial Privacy Rule Safeguards Rule Bank Secrecy Rule correct! Pretexting Provisions

Bank Secrecy rule

The ______ directed the Bureau of Consumer Financial Protection to integrate the mortgage loan disclosures formally under TILA and RESPA.

Dodd-Frank Act

What federal legislation allows the borrower to challenge the value stated within an appraisal report?

ECOA

The _____ sets forth that if a law requires that a business retain a record of a transaction, the business satisfies the requirement by retaining an electronic record, as long as the record is accessible to people who are entitled to access it.

Electronic Signatures in Global and National Commerce Act

The ______ prohibits discrimination in granting credit and prohibits a creditor from discouraging someone from applying for a loan on the basis of sex, age, marital status, race, color, religion, national origin, receipt of public assistance, and exercised rights under the Consumer Credit Protection Act.

Equal Credit Opportunity Act

Which act requires the lender to provide the borrower a reason for rejection of credit in writing within 30 days of loan application?

Equal Credit Opportunity Act

Which of the following accurately reflects the requirement specific to notifying a customer regarding the filing of a SAR?

Financial institutions are prohibited from notifying a customer for whom they have filed a SAR.

Adrian, a mortgage broker, referred her client to A&A Title, a company that both she and her husband Andy own. According to RESPA, Adrian must

Give full disclosure to the client at, or prior to, the time the referral is made.

The purpose of the ____ is to establish requirements for canceling and terminating private mortgage insurance.

Homeowners Protection Act

Which of the following is NOT a requirement of the E-Sign Act for lenders?

Lenders must provide the consumer with hardware to access records electronically.

To stay in compliance with the Equal Credit Opportunity Act and Regulation B, if Juan applied for a loan on March 1 and XYZ Mortgage Company rejected his loan application on March 5, XYZ must send Juan a written explanation of its decision by

March 31

It is a violation of Regulation N to make any material misrepresentation in any commercial communication regarding any term of any mortgage credit product, including misrepresentations specific to an advertised APR, simple annual rate, periodic rate, or any other rate. What advertisement triggers the requirement to disclose all finance charges and the true APR?

Monthly payment under $700

As set forth by Regulation X, which of the following is NOT a condition required for a person licensed and able to perform both the services of an MLO and real estate broker?

The individual must provide a bundle services discount to the party for the services.

According to RESPA, an Affiliated Business Arrangement (AfBA) disclosure must be provided

at or prior to the time a referral is made, if there is an AfBA.

Which of the following does NOT need to be included in an adverse action notice to comply with Regulation B?

a statement explaining the applicant has 30 days to request the reason for the denial.

As set forth by RESPA, at the time a servicer creates an escrow account for a borrower, the servicer may charge the borrower an amount sufficient to pay the charges respecting the mortgaged property, such as taxes and insurance, which are attributable to the period from the date such payment(s) were last paid until the initial payment date. The servicer may charge the borrower a cushion that must be no greater than ____ of the estimated total annual payments from the escrow account.

1/6th

A mortgage servicer must wait _____ days before it is allowed to file for foreclosure or trustee's sale if the borrower has not submitted an application for assistance.

120 days

For how many months after a loan closes may a mortgage loan originator call to solicit new business from a customer whose phone number is on the National Do Not Call Registry?

18 months

To comply with Regulation N (Mortgage Acts and Practices - Advertising, 12 CFR Part 1014), a lender must maintain documents for a period of ___ months describing or evidencing all mortgage credit products available to consumers during the time period in which it made or disseminated an applicable commercial communication.

24 months

Lyle calls XYZ Mortgage to inquire about current rates and provides his name and phone number. Assuming that Lyle's name is on the National Do Not Call Registry, how long does XYZ Mortgage have to follow up with Lyle?

3 Months

For closed-end credit, Regulation B states that a creditor must provide a copy of an appraisal promptly upon completion or three business days prior to consummation of the transaction. An applicant may waive the timing of this requirement. Generally, any such waiver must be obtained at least ____ business days prior to consummation.

3 days

Regulation X states that the lender or the mortgage broker generally must provide a GFE no later than ___ business days after a mortgage broker receives either an application or information sufficient to complete an application.

3 days

Per the Telemarketing Sales Rule, a loan servicer cannot call a customer later than ___ days after a customer's name is included on the National Do Not Call Registry.

31 days

Regulation X sets forth that when a servicer receives a loss mitigation application at least ___ days before a foreclosure sale, the servicer must promptly review the application to determine if it is complete.

45 days

To comply with Regulation B, a Statement of Adverse Action must either disclose a specific principal reason for the action taken or disclose the applicant's right to request the reason(s) for denial within ____ days of receipt of the lender's notification.

60 days

The Homeowners Protection Act permits a borrower to request the cancelation of mortgage insurance when the current loan balance is ______ of the original sale price or appraised value, whichever is less.

80%

Per the Real Estate Settlement Procedures Act, what situation BEST describes an affiliated business arrangement that requires disclosure?

A lender/broker has an ownership interest in a settlement service provider used to process a loan for a fee in one of its transactions.

When PMI is required for conforming adjustable-rate mortgages, the lender must provide required PMI cancellation disclosure notices

At Loan Consummation

XYZ Mortgage encourages its borrowers to employ attorney Ed to perform title searches and related settlement services in connection with their transaction. XYZ and Ed have an understanding that in return for the referral of this business, Ed provides legal services to XYZ's officers or employees for no charge. In this scenario, who is in violation of RESPA?

Both the attorney and lender

What method may be used by financial institutions to comply with the USA PATRIOT Act?

Implementing a customer identification program.

In compliance with the E-Sign Act, how must institutions confirm consumers can access electronic documents?

Obtain consumer consent electronically.

The legislation that sets out specific procedures and guidelines for closing and settlement procedures is

RESPA

RESPA is implemented by

Regulation X

Regulation X defines ______ as any service provided in connection with a prospective or actual settlement, including origination of a federally related mortgage loan including, but not limited to, rendering of credit reports and appraisals, rendering of inspections, and conducting of settlement by a settlement agent and any related services.

Settlement service

Within the Gramm-Leach-Bliley Act, the Financial Privacy Rule restricts the collection and disclosure of a customers' nonpublic personal information. As set forth in this Rule, which of the following is NOT a requirement for providing a customer with a Privacy Policy notice? The notice must provide a customer with instructions on how to opt-in to having nonpublic personal information shared within the institution. The notice must disclose its privacy policy to customers before they disclose personal information to third parties. An entity must disclose the company privacy policy annually throughout the customer relationship. The notice must provide customers with instructions on how to opt out of having nonpublic personal information shared with third parties.

The notice must provide a customer with instructions on how to opt-in to having nonpublic personal information shared within the institution.

The Bank Secrecy Act was amended by the USA PATRIOT Act (Section 326) adding the requirement that financial institutions establish a written customer identification program (CIP). Which statement is FALSE as it relates to an institution establishing a CIP?

The term "financial institution" does not include a mortgage broker or loan originator.

The Safeguards Rule, within the GLB Act, requires companies to

develop a written information security plan to ensure the security and confidentiality of customer records.