CMA - Certified Mortgage Advisor Mortgage Regulations and Compliance Questions and Answers

Question 1

Under the TILA-RESPA Integrated Disclosure (TRID) rule, which of the following events would trigger a new three-business-day waiting period for the Closing Disclosure?

Accepted Answer

The lender adds a prepayment penalty to the loan terms.

Answer

The borrower decides to take a smaller loan amount than originally disclosed.

Answer

The seller agrees to a credit for repairs discovered during the final walk-through.

Answer

The annual percentage rate (APR) decreases slightly due to a minor fee adjustment.

Question 2

A mortgage company hosts a lavish, invitation-only dinner for the top-producing real estate agents in their area to thank them for their business. This activity is most likely a violation of which regulation?

Accepted Answer

Real Estate Settlement Procedures Act (RESPA)

Answer

Equal Credit Opportunity Act (ECOA)

Answer

Fair Housing Act (FHA)

Answer

Truth in Lending Act (TILA)

Question 3

A loan applicant from a protected class under the Fair Housing Act is denied a mortgage. Which of the following is a permissible reason for the denial?

Accepted Answer

The applicant has a low credit score and high debt-to-income ratio.

Answer

The applicant's primary source of income is from public assistance.

Answer

The property is located in a neighborhood predominantly occupied by minorities.

Answer

The applicant's familial status recently changed to include a newborn.

Question 4

A borrower applies for a mortgage on Monday, June 1st. According to the TRID rule, what is the latest date the lender must provide the Loan Estimate, assuming no federal holidays?

Accepted Answer

Thursday, June 4th

Answer

Tuesday, June 2nd

Answer

Wednesday, June 3rd

Answer

Friday, June 5th

Question 5

Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of an adverse action within how many days of receiving a completed application?

Accepted Answer

30 days

Answer

15 days

Answer

60 days

Answer

90 days

Question 6

Which of the following scenarios BEST describes a potential violation of the Fair Housing Act in mortgage lending?

Accepted Answer

A lender imposing stricter underwriting standards for properties located in a specific zip code with a high minority population.

Answer

A lender offering different interest rates based on the applicant's credit score.

Answer

A mortgage advisor refusing to work with an applicant who has a recent bankruptcy.

Answer

A lender providing a lower loan amount because the property appraised for less than the sales price.