The Loan Officer Flashcards

A suspicious activity report (SAR) has to be submitted within ____ calendar days of the incident that warranted it.

Answer: 30

Financial institutions are mandated to file a Suspicious Activity Report (SAR) with the Financial Crimes Enforcement Network (FinCEN) within 30 calendar days of detecting facts that may constitute a basis for filing. This strict timeframe ensures the timely reporting of potential illicit financial activities, which is crucial for aiding law enforcement in combating financial crime and protecting the integrity of the financial system.

How long does a person's name stay on the national do-not-call list if they don't take it off?

Answer: indefinitely

Once a consumer registers their phone number on the National Do Not Call Registry, it remains on the list indefinitely unless they choose to remove it. This permanent registration provides lasting protection against unwanted telemarketing calls. Consumers do not need to re-register their numbers periodically.

How long must a copy of any advertising materials utilized by a mortgage loan originator be kept on file?

Answer: 24 month

According to the Mortgage Acts and Practices – Advertising Rule (MAP Rule), mortgage loan originators are required to retain copies of all commercial communications and advertising materials for a minimum of 24 months. This record-keeping period begins from the date the communication was last disseminated. This regulation allows regulatory bodies to review advertising practices and ensure compliance with consumer protection laws.

What must a consumer do before receiving and electronically signing electronic loan disclosures?

Answer: properly consent a receive e-disclosures

Before a consumer can legally receive and electronically sign loan disclosures, they must provide proper consent to receive disclosures electronically, as mandated by the E-SIGN Act. This ensures that the consumer understands and agrees to conduct transactions and receive documents in an electronic format. This consent protects both the consumer's rights and the legal validity of the electronic signatures.

What is NOT regarded as a condition if a borrower wants to start the cancellation of private mortgage insurance (PMI)?

Answer: a minimum credit score depending on the loan product

While a borrower's credit score is vital for initial loan qualification, it is generally not a condition for initiating the cancellation of Private Mortgage Insurance (PMI). The Homeowners Protection Act (HPA) outlines the requirements for borrower-initiated PMI cancellation, which primarily focus on the loan-to-value (LTV) ratio reaching 80%, a good payment history, and a written request from the borrower, not a specific credit score at the time of cancellation.

Each of the following can result in a fraud alert, EXCEPT?

Answer: when a consumer's credit report shows that he or she is under investigation for committing fraud

Fraud alerts are placed on a consumer's credit report to warn creditors about potential identity theft or to protect active duty military members. While being a victim of fraud or filing a criminal report related to identity theft can trigger an alert, a consumer being *under investigation for committing fraud* does not typically result in a fraud alert being placed on their credit report. Such an investigation would lead to different legal or financial actions.

A consumer report will stop include ALL of the following after seven years, EXCEPT?

Answer: bankruptcy

Under the Fair Credit Reporting Act (FCRA), most negative information, such as civil judgments, paid tax liens, and accounts placed for collection, must be removed from a consumer's credit report after seven years. However, bankruptcies are a notable exception and can remain on a credit report for up to 10 years from the date of filing, reflecting their significant and prolonged impact on creditworthiness.