CMP - Certified Mortgage Processor Mortgage Compliance and Regulations Questions and Answers

Question 1

Under the TILA-RESPA Integrated Disclosure (TRID) rule, how soon must a mortgage processor ensure the Loan Estimate (LE) is delivered or placed in the mail after receiving a complete application?

Accepted Answer

Within 3 business days

Answer

Within 7 calendar days

Answer

Immediately upon receipt

Answer

At least 3 business days before consummation

Question 2

A real estate agent refers a client to a specific mortgage lender. To show gratitude, the lender's processor arranges for a gift basket worth $200 to be sent to the agent. Which regulation is most likely violated in this scenario?

Accepted Answer

Real Estate Settlement Procedures Act (RESPA)

Answer

Equal Credit Opportunity Act (ECOA)

Answer

Home Mortgage Disclosure Act (HMDA)

Answer

Fair Credit Reporting Act (FCRA)

Question 3

Which of the following is NOT a protected class under the Equal Credit Opportunity Act (ECOA)?

Accepted Answer

Credit Score

Answer

Race

Answer

Marital Status

Answer

Source of Income (Public Assistance)

Question 4

A borrower's appraisal comes in lower than expected, which changes their eligibility for the loan program they initially applied for. This necessitates a change in loan terms and costs. According to TRID, what is this event an example of?

Accepted Answer

A valid changed circumstance

Answer

A tolerance cure violation

Answer

An adverse action

Answer

A prohibited fee increase

Question 5

According to the Home Mortgage Disclosure Act (HMDA), which of the following pieces of information is a lender required to collect and report on the Loan/Application Register (LAR)?

Accepted Answer

The applicant's race, ethnicity, and sex

Answer

The applicant's preferred communication method

Answer

The name of the applicant's employer

Answer

The applicant's educational background

Question 6

A lender denies a mortgage application. According to the Equal Credit Opportunity Act (ECOA), the lender must provide the applicant with an adverse action notice within how many days of receiving the completed application?

Accepted Answer

30 days

Answer

10 days

Answer

60 days

Answer

90 days