CMA Mortgage Regulations and Compliance 2

Question 1

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

Accepted Answer

10%

Answer

0%

Answer

5%

Answer

15%

Question 2

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

Accepted Answer

Fair Housing Act

Answer

HMDA

Answer

ECOA

Answer

CRA

Question 3

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

Accepted Answer

Permitted only for credit report fees

Answer

Permitted if disclosed on the application

Answer

Prohibited entirely

Answer

Permitted with written borrower consent

Question 4

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

Accepted Answer

Identify potential discriminatory lending patterns

Answer

Set maximum interest rates by region

Answer

Calculate required reserve ratios

Answer

Establish minimum down payment requirements

Question 5

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

Accepted Answer

3 business days

Answer

1 business day

Answer

2 business days

Answer

5 business days

Question 6

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

Accepted Answer

CFPB

Answer

HUD

Answer

OCC

Answer

FDIC

Question 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:

Accepted Answer

Prohibited regardless of disclosure

Answer

Permitted if disclosed in writing

Answer

Permitted if the referral fee is under $100

Answer

Permitted only in non-purchase transactions