CMA Regulations & Compliance 2

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID) rule

Answer

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

Question 3

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

Accepted Answer

Nationwide Multistate Licensing System (NMLS)

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

Regulation B

Answer

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

(CMA) Certified Mortgage Advisor Practice Test

(CMA) Certified Mortgage Advisor Practice Test

CMA Regulations & Compliance 2