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 Fair Housing Act, which of the following is a protected class?

    Answer: Familial status

    The Fair Housing Act protects against discrimination based on race, color, national origin, religion, sex, familial status, and disability.

  2. Which document replaced the HUD-1 Settlement Statement for most residential mortgage transactions after October 3, 2015?

    Answer: Closing Disclosure

    The TRID rule replaced the HUD-1 Settlement Statement with the Closing Disclosure for most closed-end consumer mortgage transactions.

  3. Under the SAFE Act, which type of mortgage loan originator must register with the NMLS but is NOT required to obtain a state license?

    Answer: Employees of federally regulated depository institutions

    Employees of federally regulated depository institutions (banks, credit unions, savings associations) must register with the NMLS but are not required to obtain a state MLO license.

  4. What is the primary purpose of the Community Reinvestment Act (CRA)?

    Answer: To encourage depository institutions to meet the credit needs of all communities, including low- and moderate-income areas

    The CRA encourages insured depository institutions to help meet the credit needs of communities in which they operate, particularly low- and moderate-income neighborhoods.

  5. A lender charges a borrower a higher interest rate based on their race rather than their creditworthiness. This is an example of:

    Answer: Overt discrimination

    Overt discrimination occurs when a lender explicitly uses a prohibited basis (such as race) to make credit decisions.

  6. The Gramm-Leach-Bliley Act (GLBA) primarily governs which area of mortgage compliance?

    Answer: Privacy of consumers' nonpublic personal information

    The GLBA requires financial institutions to protect consumers' nonpublic personal information and provide privacy notices describing how information is shared.

  7. Under the Dodd-Frank Act, the CFPB has supervisory authority over which type of mortgage market participants?

    Answer: Nonbank mortgage companies and large banks with assets over $10 billion

    The CFPB has supervisory authority over nonbank mortgage originators and servicers, as well as banks and credit unions with assets over $10 billion.