CRU Documentation & Legal Requirements 2

Question 1

Under RESPA, within how many business days must a lender provide a Loan Estimate to a borrower after receiving a completed loan application?

Accepted Answer

3 business days

Answer

RESPA/TRID requires the Loan Estimate to be delivered or placed in the mail no later than 3 business days after receiving a completed application.

Question 2

Which federal law requires lenders to collect and report data on mortgage applications by race, gender, and income to identify potential discriminatory lending patterns?

Accepted Answer

Home Mortgage Disclosure Act (HMDA)

Answer

HMDA requires covered lenders to collect, report, and publicly disclose loan-level data to help identify potential discriminatory lending patterns.

Question 3

A borrower's Closing Disclosure must be received at least how many business days before loan consummation under TRID?

Accepted Answer

3 business days

Answer

TRID mandates the borrower receive the Closing Disclosure at least 3 business days before loan consummation to allow time for review.

Question 4

Which document replaced the HUD-1 Settlement Statement and Truth-in-Lending disclosure for most closed-end residential mortgage transactions after October 3, 2015?

Accepted Answer

Loan Estimate and Closing Disclosure

Answer

TRID (the TILA-RESPA Integrated Disclosure rule) replaced the GFE and HUD-1 with the Loan Estimate and Closing Disclosure forms.

Question 5

Under the Equal Credit Opportunity Act (ECOA), a lender must provide a written notice of adverse action within how many days of receiving a completed application?

Accepted Answer

30 days

Answer

ECOA requires lenders to notify applicants of adverse action (denial, counteroffer, etc.) within 30 days of receiving a completed application.

(CRU) Certified Residential Underwriter Practice Test

(CRU) Certified Residential Underwriter Practice Test

CRU Documentation & Legal Requirements 2