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 HOEPA (Home Ownership and Equity Protection Act), a loan is classified as a high-cost mortgage if the APR exceeds the Average Prime Offer Rate (APOR) by more than how many percentage points for a first-lien transaction?

    Answer: 6.5 percentage points

    A first-lien mortgage is considered a high-cost mortgage under HOEPA if its APR exceeds the APOR by more than 6.5 percentage points.

  2. The Fair Credit Reporting Act (FCRA) requires credit reporting agencies to investigate disputes within how many days?

    Answer: 30 days

    The FCRA generally requires consumer reporting agencies to complete their investigation of a consumer's dispute within 30 days of receiving it.

  3. A mortgage loan originator is required to provide the Loan Estimate to a borrower within how many business days of receiving a completed application?

    Answer: 3 business days

    Under TRID, lenders must deliver or place in the mail the Loan Estimate no later than three business days after receiving the consumer's application.

  4. Under the SAFE Act, which of the following is a pre-licensure requirement for a new state-licensed mortgage loan originator?

    Answer: At least 20 hours of NMLS-approved pre-licensure education

    The SAFE Act requires new MLO applicants to complete at least 20 hours of NMLS-approved pre-licensure education covering federal law, ethics, and nontraditional mortgage products.

  5. Under Regulation Z, for a variable-rate loan with an initial fixed period of three years or more, when must the Initial ARM Disclosure be provided to the borrower?

    Answer: At the time of application or within 3 business days of application

    For adjustable-rate mortgages, lenders must provide the ARM disclosure at the time of application or within three business days after receiving the application.

  6. Which of the following practices is an example of 'steering' under the anti-steering provisions of the Dodd-Frank Act?

    Answer: Directing a creditworthy borrower to a higher-cost loan to earn a greater commission

    Anti-steering rules prohibit directing borrowers to loan products that pay the originator higher compensation when the borrower qualifies for a less costly loan.

  7. Under the Americans with Disabilities Act (ADA) and fair lending laws, a lender may NOT deny a mortgage application because a borrower's income is derived from:

    Answer: Social Security Disability Insurance (SSDI) benefits

    ECOA prohibits lenders from discounting or refusing to consider disability income (including SSDI) solely because it is disability-related income.