Practice Test Geeks(CRU) Certified Residential Underwriter Practice Test
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Regulatory Compliance & Legal Considerations Flashcards

7 cards from real CRU 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 & Legal Considerations flashcards as text

  1. Under ECOA, a lender must notify an applicant of adverse action within how many days of receiving a completed application?

    Answer: 30 days

    ECOA requires adverse action notice within 30 days of receiving a completed credit application.

  2. Which of the following is NOT one of the seven federally protected classes under the Fair Housing Act?

    Answer: Source of income

    Source of income is not a protected class under the federal Fair Housing Act, though some states and localities have enacted protections for it.

  3. The primary purpose of HMDA data collection is to:

    Answer: Identify discriminatory lending patterns and geographic redlining

    HMDA was enacted to help regulators identify discriminatory lending patterns and ensure lenders are serving their entire communities.

  4. Redlining in mortgage lending is best defined as:

    Answer: Refusing to lend in specific geographic areas based on racial or ethnic composition

    Redlining is the illegal practice of denying credit or services in geographic areas based on the racial or ethnic composition of the neighborhood.

  5. Under ECOA, which of the following characteristics is explicitly prohibited as a basis for denying a mortgage application?

    Answer: Marital status

    ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

  6. Which federal agency is primarily responsible for enforcing the Fair Housing Act in residential mortgage lending?

    Answer: Department of Housing and Urban Development

    HUD is the primary federal agency responsible for administering and enforcing the Fair Housing Act, including its lending provisions.

  7. Under fair lending law, 'disparate impact' theory means:

    Answer: A facially neutral policy disproportionately harms a protected class without sufficient business justification

    Disparate impact exists when a neutral policy disproportionately affects a protected class and the lender cannot demonstrate a legitimate business justification.