Practice Test Geeks(CMPS) Certified Mortgage Planning Specialist Practice Test
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Regulatory Compliance & Lending Guidelines Flashcards

7 cards from real CMPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance & Lending Guidelines flashcards as text

  1. Under RESPA Section 8, which of the following is NOT considered a prohibited kickback?

    Answer: A mortgage company offering marketing services agreements (MSAs) that provide fair market value compensation

    Marketing services agreements (MSAs) are permissible under RESPA Section 8 only when compensation reflects fair market value for actual marketing services rendered.

  2. The Ability-to-Repay (ATR) rule requires lenders to consider how many specific underwriting factors before originating a mortgage?

    Answer: 8

    The ATR rule requires lenders to consider 8 specific underwriting factors including income, assets, employment, credit history, monthly payment, and debt obligations.

  3. Which regulation implements the Home Mortgage Disclosure Act (HMDA) and requires lenders to collect and report loan data?

    Answer: Regulation C

    Regulation C implements HMDA and requires covered lenders to collect, record, and report data about mortgage applications and originations.

  4. A lender charges a borrower 3.5% in points and fees on a $200,000 conventional mortgage. How does this compare to the QM fee cap?

    Answer: It exceeds the QM cap of 3%

    The Qualified Mortgage points-and-fees cap is 3% for loans of $100,000 or more, so 3.5% exceeds the threshold and would disqualify QM status.

  5. Under the Equal Credit Opportunity Act (ECOA), how long must a lender retain records of credit applications?

    Answer: 25 months

    ECOA/Regulation B requires creditors to retain records of credit applications and related actions for 25 months for consumer credit.

  6. The Homeownership and Equity Protection Act (HOEPA) applies to high-cost mortgages. Which of the following is a HOEPA trigger for a first-lien loan?

    Answer: APR exceeds APOR by more than 6.5 percentage points

    For first-lien mortgages, HOEPA is triggered when the APR exceeds the Average Prime Offer Rate (APOR) by more than 6.5 percentage points.

  7. Which federal agency has primary supervisory authority over non-bank mortgage companies under the Dodd-Frank Act?

    Answer: Consumer Financial Protection Bureau (CFPB)

    The CFPB has primary supervisory and enforcement authority over non-depository mortgage companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act.