CMC Federal Regulations and Compliance Standards 3

Question 1

Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?

Accepted Answer

Sexual orientation

Answer

Sexual orientation is not a federally protected class under the Fair Housing Act, though many states and localities have added it independently.

Question 2

A lender's policy of refusing to make loans in certain geographic areas regardless of applicants' creditworthiness is known as:

Accepted Answer

Redlining

Answer

Redlining is the discriminatory practice of denying services to residents of specific areas based on the racial or ethnic composition of those neighborhoods.

Question 3

Under Regulation Z, the rescission period for a refinance of a primary residence allows the borrower to cancel the loan within:

Accepted Answer

3 business days from closing, delivery of the notice, or delivery of all material disclosures

Answer

Regulation Z grants a 3-business-day right of rescission measured from the latest of closing, delivery of the rescission notice, or delivery of required disclosures.

Question 4

The SAFE Act requires all mortgage loan originators (MLOs) to:

Accepted Answer

Register with or be licensed through the Nationwide Multistate Licensing System (NMLS)

Answer

The SAFE Act mandates that MLOs register with depository institutions or obtain state licensure, both recorded in the NMLS.

Question 5

Which regulation implements the Equal Credit Opportunity Act (ECOA) and prohibits discrimination in credit transactions?

Accepted Answer

Regulation B

Answer

Regulation B implements ECOA and requires creditors to evaluate applicants without regard to race, sex, age, religion, national origin, or receipt of public assistance.

(CMC) Certified Mortgage Consultant Practice Test

(CMC) Certified Mortgage Consultant Practice Test

CMC Federal Regulations and Compliance Standards 3