Practice Test Geeks(CMPS) Certified Mortgage Planning Specialist Practice Test
← All CMPS Flashcard Decks

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

    Answer: Sexual orientation

    Sexual orientation is not a protected class under the federal Fair Housing Act, though many states and localities have added it through their own laws.

  2. The three-day right of rescission under TILA applies to which type of mortgage transaction?

    Answer: Refinance of a primary residence with a new lender

    The three-day right of rescission under TILA applies to non-purchase refinance transactions secured by the borrower's primary residence.

  3. A mortgage loan officer who works for a federally insured depository institution must register under which system?

    Answer: Nationwide Mortgage Licensing System (NMLS) Registry

    MLOs employed by federally insured depository institutions must register with the NMLS Registry under the SAFE Act, while those at non-bank lenders must obtain a state license.

  4. What is the maximum prepayment penalty period allowed under the Qualified Mortgage rule?

    Answer: 36 months

    Qualified Mortgages may include prepayment penalties only for up to 36 months after consummation, and only on fixed-rate or step-rate QMs.

  5. Under Regulation Z, the finance charge disclosure in a mortgage must be delivered to the borrower how many business days before consummation?

    Answer: 3 business days

    TRID requires the Closing Disclosure to be delivered to the borrower at least 3 business days before consummation of the loan.

  6. A pattern of denying mortgage applications in minority neighborhoods regardless of individual creditworthiness is known as:

    Answer: Redlining

    Redlining is the illegal practice of refusing to provide mortgage loans or insurance in specific geographic areas based on the racial or ethnic composition of those neighborhoods.

  7. The Community Reinvestment Act (CRA) was enacted primarily to address which issue?

    Answer: Discriminatory credit practices that denied services to low-income neighborhoods

    The CRA was enacted in 1977 to encourage depository institutions to meet the credit needs of all communities they serve, including low- and moderate-income neighborhoods.