CMPS Regulatory Compliance & Lending Guidelines 5

Question 1

The Mortgage Disclosure Improvement Act (MDIA) added a requirement that borrowers must receive the initial Truth-in-Lending disclosure within how many business days of application?

Accepted Answer

3 business days

Answer

MDIA requires lenders to provide the initial TIL disclosure within 3 business days of receiving a completed loan application.

Question 2

Under conventional Fannie Mae/Freddie Mac guidelines, what is the standard maximum debt-to-income (DTI) ratio for a manually underwritten loan without compensating factors?

Accepted Answer

45%

Answer

Conventional guidelines generally allow a maximum DTI of 45% for manually underwritten loans, though DU/LP may approve higher DTIs with strong compensating factors.

Question 3

A lender who steers a creditworthy borrower into a subprime loan when they qualify for a prime product may violate which law?

Accepted Answer

The Fair Housing Act and ECOA anti-steering provisions under Regulation Z

Answer

Anti-steering provisions under Regulation Z (implementing Dodd-Frank) prohibit steering borrowers toward non-QM or higher-cost loans when they qualify for better products.

Question 4

Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate a lender can charge on a mortgage taken out before active duty military service?

Accepted Answer

6% per annum

Answer

The SCRA caps interest rates at 6% per annum on pre-service obligations, including mortgages, while a servicemember is on active duty.

Question 5

Which disclosure must a lender provide if the APR on a revised Loan Estimate increases by more than 1/8 of 1% from the initial estimate?

Accepted Answer

A revised Loan Estimate, triggering a new 3-business-day waiting period

Answer

Under TRID, if a valid changed circumstance causes the APR to increase by more than 1/8%, the lender must issue a revised Loan Estimate and restart the 3-business-day waiting period.

(CMPS) Certified Mortgage Planning Specialist Practice Test

(CMPS) Certified Mortgage Planning Specialist Practice Test

CMPS Regulatory Compliance & Lending Guidelines 5