CHCP Regulatory Compliance & Legal Issues 2

Question 1

Under RESPA, which of the following is prohibited when a lender requires a borrower to use a specific title company?

Accepted Answer

Accepting a kickback or fee-splitting arrangement

Answer

RESPA Section 8 prohibits kickbacks and fee-splitting arrangements between settlement service providers as they increase consumer costs without adding value.

Question 2

A closing agent discovers that a property's legal description on the deed does not match the survey. What is the MOST appropriate immediate action?

Accepted Answer

Halt the closing and notify all parties to resolve the discrepancy

Answer

A mismatch between the deed's legal description and the survey is a title defect that must be resolved before closing to ensure the buyer receives clear title.

Question 3

Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?

Accepted Answer

TRID (TILA-RESPA Integrated Disclosure)

Answer

TRID, effective October 2015, replaced the GFE and TIL disclosure with the Loan Estimate, which must be delivered within three business days of application.

Question 4

The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against applicants based on all of the following EXCEPT:

Accepted Answer

Credit score and payment history

Answer

ECOA prohibits discrimination based on protected characteristics, but lenders may lawfully use creditworthiness factors like credit score and payment history.

Question 5

Under the Dodd-Frank Act, what is the maximum permissible points-and-fees threshold for a Qualified Mortgage on a loan of $100,000?

Accepted Answer

3%

Answer

For a Qualified Mortgage, points and fees generally cannot exceed 3% of the total loan amount for loans of $100,000 or more.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP Regulatory Compliance & Legal Issues 2