CMA Regulations & Compliance 3

Question 1

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

Accepted Answer

Familial status

Answer

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

Question 2

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

Accepted Answer

Closing Disclosure

Answer

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

Question 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?

Accepted Answer

Employees of federally regulated depository institutions

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

Overt discrimination

Answer

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

(CMA) Certified Mortgage Advisor Practice Test

(CMA) Certified Mortgage Advisor Practice Test

CMA Regulations & Compliance 3