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101-200 Flash cards

Terms in this set (100)

What does AUS stand
for?
Automated Underwriting
System
What does SAFE Act
stand for?
Secure & Fair
Enforcement Act
What does HERA stand
for?
Housing & Economic
Recovery Act
What does HPA stand
for?
Homeowner's Protection
Act
What does GLBA stand
for?
Graham Leach Bliley
Act
What type of property is
covered under RESPA?
1 - 4 unit Residential
Property
Which regulation allows lenders to
OBTAIN information regarding a
borrower's ethnicity, to help identify
possible discriminatory patterns?
HMDA - Regulation C
When can a borrower
request cancellation of
PMI?
When LTV Reaches 80%
When must the lender
automatically cancel
PMI?
When the LTV reaches
78%
What is the primary
market?
Where borrowers/consumers
obtain mortgage loans
What is the secondary
market?
Where lenders buy &
sell loans from one
another
Name the two
Government Sponsored
Enterprises (GSEs)?
Fannie Mae
Freddie Mac
Which GSE is the
Federal National
Mortgage Association?
Fannie Mae
Which GSE is the
Federal Home Loan
Mortgage Association?
Freddie Mac
TILA applies when credit
is payable by written
agreement in __________
installments?
More than 4 installments
Which AUS system does
Fannie Mae use?
Desktop Underwriter
(DU)
Which AUS system does
Freddie Mac use?
Loan Product Advisor
(formerly Loan
Prospector)
How often must
National DNC and
internal DNC list be
updated?
Every 31 days and
records must be
maintained for 24
months
An appraisal is valid for
_____ months?
An appraisal is valid for 6
months (updated 1/1/2020). It
must be re-certified if the
appraisal will be 4 months (120
days) old or more at closing.
What is the penalty for
violating the DNC list?
$42,530
Which regulation allows
the borrower to sue for
3x's the amount paid for
title insurance?
RESPA Section 9
If money was collected,
and a borrower rescinds,
how long does escrow
have to return the funds?
20 days
MLOs seeking to become licensed in
other states or who seek to move
from a bank to a non-bank lender
will be allowed ____ days of
transitional (temporary) authority.
Up to 120 days
What is the only fee that
can be collected prior to
delivery of the Loan
Estimate?
Credit Reporting fee
Once an individual is unlicensed for
________ years as an MLO, most states
require that the individual retake the
20hrs of pre-licensing education in
order to have his MLO license
reinstated.
3 years
What law requires that the
equal housing lender
slogan and/or logo be
placed on all advertising?
Fair Housing Act
How long does a person
have to sue for a
violation under the Fair
Housing Act?
1 year
Once unlicensed for ______
years, the individual must
retake and pass the
National Exam.
5 years
What is the site where you
can receive a free copy of
your credit report,
according to the FACT
Act?
Annualcreditreport.com
The lender must provide the
borrower with a list of then
______ HUD approved
counselors.
10
What regulation is designed
to protect consumer's non-
public information (NPI) and
how it can and cannot be
shared?
GLBA
Which law requires lenders to
verify the date of birth, SS#
and ethnicity of a person
getting a loan in the United
States?
U.S. Patriot Act
If you fail the test 3
times, what is the
waiting period to retest?
6 Months
Under HMDA, how long
must a lender keep the
Loan Application
Register (LAR)?
3 years
What day does your
license expire each year?
December 31st
What is the renewal
period to keep your
license current?
NOV 1 - DEC 31st
What are the two (2) types of mortgages
that require that the homeowner meet
with a counselor - to ensure that the
he/she understands how the program
works.
Reverse mortgages &
Higher-Priced (Section
35/HMLS) mortgages.
Which Act requires
companies to give
consumers privacy
notices?
Gramm-Leach-Bliley
Which act was
implemented to promote
financial stability and to
protect consumers from
abusive practices?
Dodd Frank Act
What is RESPA Section
6 responsible for?
Mortgage Servicing
What is RESPA Section
8 responsible for?
Kickbacks, Fee Splitting
& Unearned fees
What is RESPA Section
9 responsible for?
Title Insurance
What is RESPA Section
10 responsible for?
Escrow Accounts
What is the max mortgage
term (length) allowed for a
mortgage to be classified
as a Qualified Mortgage?
30 years
Until the loan estimate
has been delivered, what
fee can a MLO charge?
Credit Report
Estimate of charges and terms
for settlement services must be
available for at least _________
business days from the time the
Loan Estimate is provided?
10
If a new (revised) Loan Estimate is
required because of a changed
circumstance, it must be disclosed
and received by the borrower
________ days prior to
consummation of the loan?
4 days
Flood Insurance must be
purchased from the
_____________.
Flood Insurance must be
purchased from the National
Flood Insurance Program
(NFIP).
The minimum amount of
flood insurance required
for a home in a flood
zone is $_______.
$100k
The max amount of flood
insurance required for a
home in a flood zone is
$_______.
$250k
The loan estimate must
be retained for how
long?
3 years
What does HMDA stand
for?
Home Mortgage
Disclosure Act
What does NOV stand
for?
Notice of Value
What does CRV stand
for?
Certificate of Reasonable
Value
What does the "R" stand
for in the acronym
NMLSR
REGISTRY
What is a Mortgage Call
Report (MCR)?
Quarterly Report
required by MLO
Company and Mortgage
Brokers
Loan originator
organizations must keep
compensation records for
how many years?
3 years
Mortgage companies must
submit a residential loan
origination activity report
to the NMLSR every:
3 Months
Which Act specifically
prohibits blockbusting?
Fair Housing Act
What law protects
homeowners from
foreclosure-prevention
scams?
Mortgage Assistance
Relief Services Rule
Which law requires
financial institutions to keep
detailed records of cash
transactions exceeding
$10,000 (withdrawing,
depositing or transporting).
Bank Secrecy Act/Anti-
Money Laundering
(BSA/AML)
What type of federal
report is filed when
financial institutions detect
suspicious activity?
Suspicious Activity
Report
Which law requires
businesses to print only the
last five card numbers on a
credit card receipt?
FACT Act
What happens if the
acceptable variance
between the Loan Estimate
and the Closing Disclosure
is exceeded?
The excess is refunded to
the borrower within 60
days
A higher-priced home
loan is one that has:
APR exceeds the average prime rate by at least 1.5% for first-lien loans, 2.5% for a first lien Jumbo loan, or 3.5% for a subordinate mortgage
lien.
What is the shortest time
in which a mortgage
purchase loan can close?
7 business days
Which law states that MLOs are
required to report any suspicious
activity exceeding $5,000 that may
be a sign of tax evasion, money
laundering, or other possible
criminal activity.
Bank Secrecy Act/Anti-
Money Laundering
(BSA/AML)
Denise reviewed her credit report
and discovered a few discrepancies
and would like to dispute them -
once disputed, how long does the
credit reporting agency have to
respond to the dispute?
30 days
The Red Flags Rules are
also known as
________
Section 114
rules under the FACT Act
What law requires ARM
borrowers to receive the
Consumer Handbook on
Adjustable Rate
Mortgages?
TILA
Which law requires that
the "Know Before You
Owe" booklet be given
to the borrower?
RESPA
Lenders must maintain an
escrow account for higher-
priced (Section 35)
mortgages for a minimum
of:
5 years
What is the Fannie Mae
appraisal report form?
URAR - 1004 Form
What lien has the highest
priority and is paid off
first when a property is
sold?
Property Tax
What document is
assigned along with the
mortgage?
Promissory note
What term describes the
process of a senior
mortgage lien-holder
voluntarily changing into a
junior mortgage lien-
holder?
Subordination
What does Ginnie Mae
do?
Guarantees Ginnie-Mae
mortgage-backed
securities
Which law requires
lenders to train employees
to recognize the Red Flags
of identity theft?
FACT Act
Which law entitles a
borrower to a copy of his
appraisal report?
ECOA
According to the GLB Act,
a person who completes a
single transaction with a
creditor is known as a(n)
customer or a consumer?
A consumer
The lowest possible
interest rate for an ARM
loan is known as the:
Floor
If an applicant works 30
hours every week and is
paid $25.00 per hour, what
is the applicant's monthly
income?
$3,250
$25.00 x 30hrs a week x 52weeks in
year / 12
What law prohibits
discrimination in the sale
& lease of property?
Fair Housing Act
The term "20 basis
points" expressed as a
percentage is:
0.20%
The late fee for a
conventional loan is:
5% of principal and
interest
A funding fee is required
for a:
VA loan
The mortgagee is the:
Lender
Who does Fannie Mae
hold responsible for the
quality of an appraisal?
Lender
Which law prohibits
discrimination by lenders
when extending credit?
Equal Credit Opportunity
Act
A property sold for $200,000
and was appraised at
$180,000. The borrower
received a loan for $150,000.
What is the loan-to-value?
83.3%
($150,000/$180,000)
How many days does a
lender have to send an
adverse action notice?
30 days
The enforcement of a
lien is known as a:
Foreclosure
What minimum
percentage of ownership
qualifies an individual as
self-employed?
25%
Which law defines the
right of rescission?
Truth-in-Lending
How long after the
application date must
social security payments
continue to be received in
order to count as income?
3 years
Which clause in a
mortgage allows a lender
to increase the interest
rate?
Escalation
A VA appraisal is known
as a:
CRV or NOV
Which types of loans are
meant for rural areas?
USDA - Section 502
The purchase price of a home is
$200,000 and the loan amount is
$180,000. The borrower pays 6%
interest with 1 discount point and 1
origination point. What is the cost of
the points?
$3,600
($180,000 x 2%)
What is the maximum
allowable amount of VA
seller concessions?
4%
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