CMC Federal Regulations and Compliance Standards 2

Question 1

Under RESPA, a 'kickback' is defined as any fee, kickback, or thing of value paid for the referral of settlement service business. What is the maximum criminal penalty for a RESPA Section 8 violation?

Accepted Answer

$10,000 fine and up to 1 year imprisonment

Answer

$5,000 fine and up to 1 year imprisonment

Answer

$25,000 fine and up to 5 years imprisonment

Answer

$50,000 fine and up to 2 years imprisonment

Question 2

The Qualified Mortgage (QM) rule's 'points and fees' cap for loans of $100,000 or more is:

Accepted Answer

3%

Answer

2%

Answer

4%

Answer

5%

Question 3

Which federal law requires lenders to provide a Loan Estimate within 3 business days of receiving a completed loan application?

Accepted Answer

TRID (TILA-RESPA Integrated Disclosure)

Answer

RESPA

Answer

TILA

Answer

HMDA

Question 4

Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate a lender may charge on a mortgage for an active-duty servicemember?

Accepted Answer

6%

Answer

4%

Answer

5%

Answer

8%

Question 5

The Home Mortgage Disclosure Act (HMDA) was enacted primarily to:

Accepted Answer

Detect discriminatory lending patterns and ensure credit is available in communities

Answer

Set maximum allowable interest rates on home loans

Answer

Require lenders to maintain escrow accounts for taxes and insurance

Answer

Establish uniform appraisal standards for residential properties

Question 6

A lender charges a borrower $1,200 for a credit report that actually costs $30. Under which law is this most likely a violation?

Accepted Answer

RESPA Section 8 prohibiting fee splitting

Answer

Fair Credit Reporting Act

Answer

Equal Credit Opportunity Act

Answer

Gramm-Leach-Bliley Act

Question 7

The Ability-to-Repay (ATR) rule requires lenders to consider which of the following before extending credit?

Accepted Answer

Eight specific underwriting factors including income, assets, employment, credit history, and monthly payment

Answer

Only the borrower's current income and debt-to-income ratio

Answer

The borrower's net worth and investment portfolio

Answer

Only the property value relative to the loan amount