MLO National Exam Chapter 4 Review Questions
What act applies to PMI cancellation?
HPA.
A mortgage company originates a loan for a borrower on the do not call list. At what point would it violate telemarketing laws to call the client?
After 18 months.
Who ultimately oversees the SAFE Act?
CFPB (Consumer Financial Protection Bureau).
A bankruptcy will stay on a consumer's credit report:
10 Years.
If a consumer on the do not call list makes an inquiry with a mortgage company the mortgage company may return the call within _____ months with no penalty.
3.
The external do not call list must be updated every _______ months?
3.
How long will derogatory credit show on a credit report:
7 Years.
What is the earliest point a homeowner may cancel PMI coverage.
80% LTV.
The CFPB enforces which laws?
Fair Credit Report Act. Fair and Accurate Credit Transactions Act. The Truth in Lending Act. All of the above ^
According to FACTA, it would be considered a red flag if the applicant is a recent immigrant.
False.
A letter adverse action must identify:
Fraud alert on the borrower's credit report. Suspicious identifying documents Specific reason for the adverse action. All of the above ^
Which of the following would be a red flag?
Fraud alert on the borrower's credit report. Suspicious identifying documents. Unusual behavior detected in the credit report. All of the above ^
The internal do not call list must be updated every ______ month(s).
One.
According to the Fair Credit Reporting Act, does a consumer have the right to inspect and correct errors on their credit report?
True.
The Fair Credit Reporting Act requires all three national repositories of accumulated credit records to give a consumer a free copy of the borrower's credit report every 12 months.
True.
The Gramm-Leach-Bliley Act requires that the privacy notice be given to the customer at the time a relationship is established and then annually during the continuation of the relationship.
True.
if the borrower is turned down for credit he has the right to a free copy of the credit report within 60 days.
True.
Automatic PMI termination occurs at what point?
When the loan has been paid down to 78% of the properties original value.