Missed Test questions + Study Cards
What is the Federal agency responsible for issuing and implementing regulations for TILA? (A) The USDA (B) The CFPB (C) The FTC (D) Fannie Mae
(B) The CFPB
Evidence of compliance with the TRID disclosure rule must be retained for how many year(s) after the date of disclosure? (A) 1 year (B) 2 years (C) 3 years (D) 5 years
C - TRID is part of TILA and is therefore 3 years RESPA/US Patriot act - 5 YEARS TCP - 2 YEARS HMDA/TILA(TRID) - 3 YEARS ECOA - 25 MONTHS
How many years must evidence of compliance with the TILA (TRID) be retained after the date of disclosure? (A) 1 year (B) 2 years (C) 3 years (D) 4 years
(C) 3 years
The Red Flags Rule was enacted as part of what other legislation? (A) TILA (B) HMDA (C) FACTA (D) RESPA
(C) FACTA Fair and Accurate Credit Transaction Act. Think O FAC checks.
Financial institutions should not report certain loan data. Which of the following is not on the excluded data list for a financial institutions reporting? (A) Loans on unimproved land (B) The purchase of mortgage loan servicing rights (C) Home improvement loans (D) Temporary financing (such as bridge or construction loans)
(C) Home improvement loans Why: The other choices are not dealing with either a home purchase or home improvements. (HMDA) "For each calendar year, a financial institution must report data regarding its applications, originations, and purchases of home purchase loans, home improvement loans, and refinancing's. Loans secured by real estate that are neither refinancing's nor made for home purchase or home improvements are not reported."
How long does MIP stay on an FHA loan where a borrower puts 10% down at purchase? (A) 5 years (B) Lifetime (C) 7 years (D) 11 years
(D) 11 years Most FHA loans, regardless of LTV, have MIP for eleven (11) years. The only exceptions are loans with a greater than 90% LTV. In that case, the MIP is in effect until the end of the term (lifetime) or for the first 30 years, whichever occurs first.
The USA Patriot Act requires that information collected be kept for at least how many years after the account closes? (A) 2 years (B) 3 years (C) 4 years (D) 5 years
(D) 5 years RESPA/US Patriot act - 5 YEARS TCP - 2 YEARS HMDA/TILA(TRID) - 3 YEARS ECOA - 25 MONTHS
How long does a company have to place a customer on their internal Do Not Call list once the customer makes the request? (A) 30 days (B) 3 business days (C) 5 business days (D) 60 business days
A Telemarketing Rules / TCPA - Telephone Consumer Protection Act If a client wants be placed on your internal Do Not Call List - how long do you have to comply with their request? 30 days - Keep it up to date Companies must update and synchronize their internal Do not call records with the national registry every 31 days Telemarketers must keep records for 2 years (scripts, advertising, call records)
What is FACTA, the purpose, who created, who monitors?
FTC Red FLAGS Rule FTC (Federal Trade Commission) - created, maintains and monitors compliance with the Red Flags Red Flag - a suspicious activity, potential pattern or practice or a danger to a borrower's credit information being used for identity theft. This law expanded the definition of "creditor" to not just include Financial Institutions but anyone who offers a service that is paid for later (utility, cell phone). Every company is required to have a written Red Flags Plan in place and each company plan will vary depending on the size/scope/ complexity of the organization.
What is HMDA, the purpose, the reg, how often do they report?
Home Mortgage Disclose Act - Reg C Purpose of HMDA is to find lenders who are Redlining - Redlining is 'Failing to lend' to certain geographic areas or segments of the population. Every year on March 1st lenders are required to report their loan activity - in this report they must give the disposition of each and every loan application taken.
If a borrower takes out an FHA loan and puts down 5%, how long does MIP stay on?
Lifetime or until end of term - because it was less than 10% down.
