Practice Test Geeks(CMA) Certified Mortgage Advisor Practice Test
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Mortgage Regulations and Compliance Flashcards

7 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Mortgage Regulations and Compliance flashcards as text

  1. Under RESPA, what is the maximum tolerance for increases in third-party settlement service charges between the Loan Estimate and Closing Disclosure?

    Answer: 10%

    RESPA allows a 10% tolerance for third-party charges where the borrower was permitted to shop but selected a provider from the lender's written list.

  2. Which federal law prohibits mortgage lenders from discriminating based on the racial composition of a neighborhood?

    Answer: Fair Housing Act

    The Fair Housing Act prohibits redlining and other discriminatory practices based on race, color, religion, national origin, sex, disability, or familial status.

  3. A loan officer collects a $500 application fee before providing the Loan Estimate. Under TRID rules, this practice is:

    Answer: Permitted only for credit report fees

    TRID prohibits collecting any fees before the borrower receives and indicates intent to proceed with the Loan Estimate, except for a bona fide credit report fee.

  4. The Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data primarily to:

    Answer: Identify potential discriminatory lending patterns

    HMDA data collection helps regulators and the public identify whether lenders are serving the housing needs of their communities and detect discriminatory lending patterns.

  5. Under Regulation Z, the right of rescission for a refinance transaction expires how many business days after the last of three triggering events?

    Answer: 3 business days

    Borrowers have 3 business days to rescind after consummation, delivery of the rescission notice, or delivery of all material disclosures, whichever occurs last.

  6. Which agency is primarily responsible for enforcing the Equal Credit Opportunity Act (ECOA) for mortgage lenders?

    Answer: CFPB

    The Consumer Financial Protection Bureau (CFPB) has primary enforcement authority for ECOA, which prohibits credit discrimination based on protected characteristics.

  7. A mortgage company pays a real estate agent a referral fee for sending buyers to their loan officers. Under RESPA Section 8, this arrangement is:

    Answer: Prohibited regardless of disclosure

    RESPA Section 8 prohibits kickbacks and unearned fees for referrals of settlement services, regardless of disclosure or the amount involved.