CMC Federal Regulations and Compliance Questions and Answers

Question 1

A mortgage consultant places an advertisement that reads: 'Incredibly low monthly payments! Only $1,200 per month for your dream home.
Call now!' Under the Truth in Lending Act (TILA), what additional information MUST be included in this advertisement?

Accepted Answer

The amount or percentage of the down payment, the terms of repayment, and the Annual Percentage Rate (APR).

Answer

The name of the appraiser the company uses.

Answer

The loan originator's license number.

Answer

A statement that the interest rate is not guaranteed to lock.

Question 2

A loan applicant from a protected class under the Fair Housing Act believes they were discriminated against because they were offered a higher interest rate than other similarly qualified applicants. Which of the following is NOT a protected class under the federal Fair Housing Act?

Accepted Answer

Source of Income

Answer

Religion

Answer

Familial Status

Answer

National Origin

Question 3

A mortgage company receives a completed loan application from a consumer on Monday, June 1st. According to the TILA-RESPA Integrated Disclosure (TRID) rule, what is the latest date the company must deliver or place the Loan Estimate in the mail?

Accepted Answer

Thursday, June 4th

Answer

Tuesday, June 2nd

Answer

Wednesday, June 3rd

Answer

Monday, June 8th

Question 4

Under the Equal Credit Opportunity Act (ECOA), a lender must notify an applicant of its credit decision within 30 days of receiving a completed application. If the decision is an adverse action, which of the following must the notice contain?

Accepted Answer

A statement of the specific reasons for the action taken or a disclosure of the applicant's right to request the reasons.

Answer

A copy of the applicant's full credit report.

Answer

The loan officer's personal contact information.

Answer

A referral to another specific lender.

Question 5

A title company representative offers a mortgage consultant a flat fee of $200 for every client they refer who closes a loan with that title company. This arrangement is a violation of which federal regulation?

Accepted Answer

Real Estate Settlement Procedures Act (RESPA)

Answer

Truth in Lending Act (TILA)

Answer

Fair Housing Act (FHA)

Answer

Home Mortgage Disclosure Act (HMDA)

Question 6

A non-bank residential mortgage lender becomes aware of a series of transactions by a borrower that appear designed to conceal the source of their down payment funds, potentially involving money laundering. Under the Bank Secrecy Act (BSA), what action is the lender required to take?

Accepted Answer

File a Suspicious Activity Report (SAR) with FinCEN.

Answer

Close the borrower's loan application immediately.

Answer

Report the activity to the local police department.

Answer

Advise the borrower to restructure their transactions.

A mortgage consultant places an advertisement that reads: 'Incredibly low monthly payments! Only $1,200 per month for your dream home.Call now!' Under the Truth in Lending Act (TILA), what additional information MUST be included in this advertisement?

A mortgage consultant places an advertisement that reads: 'Incredibly low monthly payments! Only $1,200 per month for your dream home.
Call now!' Under the Truth in Lending Act (TILA), what additional information MUST be included in this advertisement?