CMPS Regulatory Compliance & Lending Guidelines 2

Question 1

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

Accepted Answer

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

Answer

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

Question 2

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

Accepted Answer

8

Answer

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

Question 3

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

Accepted Answer

Regulation C

Answer

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

Question 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?

Accepted Answer

It exceeds the QM cap of 3%

Answer

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.

Question 5

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

Accepted Answer

25 months

Answer

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

(CMPS) Certified Mortgage Planning Specialist Practice Test

(CMPS) Certified Mortgage Planning Specialist Practice Test

CMPS Regulatory Compliance & Lending Guidelines 2