Tests over Section 17
The ______ was enacted in 1946 in response to the creation of several new federal agencies. It established a process for how the agencies could propose and establish regulations. Administrative Procedure Act Equal Credit Opportunity Act Federal Agency Control Act Federal Agency Roles and Responsibilities Act
Administrative Procedure Act
A bank that addresses a community development need in its assessment area and donates to recovery efforts of a flooded lower-income area might be an example of the bank supporting what act? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act
Community Reinvestment Act
Because of the Mortgage Disclosure Improvement Act, the only advance fee that a creditor can charge to a consumer before providing required loan disclosures is a(n) ______ fee. Application Appraisal Credit report NMLS license discovery
Credit report
Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Discrimination Act
Equal Credit Opportunity Act
The ______ was enacted in 1974 as a response to discriminatory practices by lenders. It was created to help ensure that access to consumer credit was not based on protected class status, but on creditworthiness. Community Reinvestment Act Equal Credit Opportunity Act Home Mortgage Disclosure Act Real Estate Settlement Procedures Act
Equal Credit Opportunity Act
South Carolina's predatory lending law is called ______. High Cost and Consumer Home Loan Act Junk Loan Avoidance Act Predatory Prevention Act SAFE Act
High Cost and Consumer Home Loan Act
The ______ Act was legislation aimed primarily at addressing the effects of the subprime mortgage crisis. Home Financing Recovery Homeownership Prosperity and Economic Recovery Housing and Economic Recovery Housing Stabilization
Housing and Economic Recovery
What's the purpose of the Equal Credit Opportunity Act? It requires financial institutions to maintain, report, and publicly disclose information about their mortgages. It requires lenders to make credit equally available to all creditworthy applicants, regardless of the applicant's protected class status. It requires that lenders disclose all credit terms in any advertisement that offers credit, allowing consumers to make informed comparisons. It requires that lenders invest in development and rehabilitation efforts that enable low- and moderate-income individuals and families to afford a home.
It requires lenders to make credit equally available to all creditworthy applicants, regardless of the applicant's protected class status.
Fairwell Lending must seek the court's permission to foreclose on a property used as collateral for a loan that is in default. What type of foreclosure process is likely being used? Arbitration Deed in lieu of foreclosure Judicial foreclosure Non-judicial foreclosure
Judicial foreclosure
In South Carolina, the ______ creates a lien against the property. Deed of Trust Mortgage Promissory note Title
Mortgage
The CFPB promotes consumer protection in the credit market through a number of strategies, including ______. Participating in the secondary mortgage market Providing tuition grants to prevent overwhelming student debt Responding to and investigating consumer complaints regarding financial services The creation of new financial services
Responding to and investigating consumer complaints regarding financial services
With this alternative to foreclosure, borrowers receive permission from their lender to sell the property for less than the amount owed on the borrower's mortgage. Bankruptcy Repayment plan Short sale Voluntary conveyance of deed
Short sale
What's the acronym for the legislation that requires lenders to make full disclosure of the terms and conditions of credit? ARRA ECOA MDIA TILA
TILA
Rules and regulations that protect consumers of financial services are now the responsibility of ______, which was created by the Dodd-Frank Act. HUD The CFPB The ECOA The U.S. Department of Commerce
The CFPB
Abigail is a consumer in South Carolina who's closing on a mortgage. Which statement related to her legal representation is true? The borrower has no rights related to legal counsel representation at closing. The borrower has the right to choose legal counsel to represent them at loan closing. The borrower must seek permission from the lender to have legal counsel representation at loan closing. The lender has the right to choose the legal counsel to represent the borrower at closing.
The borrower has the right to choose legal counsel to represent them at loan closing
In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer? The consumer's lender The consumer's mortgage broker The consumer's real estate broker The settlement officer for the transaction
The consumer's lender
Joyce and Danny purchased a home in 2009 for $280,000. They received a homebuyer credit of $8,000. Their friends Margie and Scott purchased a home in 2010 for $320,000. Margie and Scott didn't receive a homebuyer credit. Why not? Joyce and Danny used a loan backed by the Federal Housing Administration, which automatically credits the homebuyer, while Margie and Scott used a conventional loan. Margie and Scott received a subprime mortgage and weren't eligible for the homebuyer credit. The homebuyer credit was part of the stimulus package enacted in 2009 and was only effective between January and December of 2009. The house that Margie and Scott purchased was in a neighborhood with a large minority population.
The homebuyer credit was part of the stimulus package enacted in 2009 and was only effective between January and December of 2009.
What is a deficiency judgment? The lender pays the homeowner the amount owed and not covered by an auction sale. The mortgagee goes after the mortgagor for the amount owed and not covered by an auction sale. The mortgagee pays the mortgagor the amount owed and not covered by an auction sale. The mortgagor goes after the mortgagee for the amount owed and not covered by an auction sale.
The mortgagee goes after the mortgagor for the amount owed and not covered by an auction sale.
Under RESPA, a rebate of a licensee's commission may be offered to a transaction party, provided which of the following is true? It is less than half of the commission amount. The licensee is the listing broker. The rebate is not required for referral of business. The rebate is split among both transaction parties equally.
The rebate is not required for referral of business
The Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______. The civil rights era The Great Depression of the 1930s The recession and banking scandals of the 1980s The subprime mortgage crisis and economic meltdown of 2007-2008
The subprime mortgage crisis and economic meltdown of 2007-2008
