Practice Test Geeks(CMA) Certified Mortgage Advisor Practice Test
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Regulations & 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 Regulations & Compliance flashcards as text

  1. Under the Home Mortgage Disclosure Act (HMDA), which institution is generally required to collect and report loan data?

    Answer: Any lender that originates at least 25 closed-end mortgage loans in each of the two preceding calendar years

    HMDA requires covered institutions that originate at least 25 closed-end or 100 open-end mortgage loans in each of the two preceding calendar years to collect and report data.

  2. Which federal law requires lenders to provide borrowers with a Closing Disclosure at least three business days before loan consummation?

    Answer: TILA-RESPA Integrated Disclosure (TRID) rule

    The TRID rule, effective October 2015, requires lenders to deliver the Closing Disclosure to borrowers at least three business days prior to loan consummation.

  3. A mortgage loan originator who is employed by a state-licensed mortgage company must be licensed under which system?

    Answer: Nationwide Multistate Licensing System (NMLS)

    The SAFE Act requires mortgage loan originators at state-licensed companies to register and obtain a license through the NMLS.

  4. Under RESPA Section 8, which of the following is PROHIBITED?

    Answer: Paying a referral fee to a real estate agent for sending mortgage business

    RESPA Section 8 prohibits kickbacks and referral fees between settlement service providers for the referral of business.

  5. Which regulation implements the Equal Credit Opportunity Act (ECOA)?

    Answer: Regulation B

    Regulation B implements ECOA and prohibits creditors from discriminating against applicants based on protected characteristics.

  6. The Ability-to-Repay (ATR) rule requires lenders to make a reasonable, good-faith determination of a borrower's ability to repay based on how many underwriting factors?

    Answer: 8

    The ATR rule requires lenders to consider at least eight specific underwriting factors including income, assets, employment, credit history, and monthly payment obligations.

  7. A Qualified Mortgage (QM) under the CFPB's rules generally cannot have points and fees exceeding what percentage of the total loan amount for loans of $100,000 or more?

    Answer: 3%

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