Mortgage Loan Originator Federal Regulations and Ethics 2

Question 1

Under the Dodd-Frank Act, a 'Qualified Mortgage' (QM) provides lenders with:

Accepted Answer

A presumption of compliance with the ability-to-repay rule

Answer

Immunity from all lawsuits

Answer

The right to charge any fee amount

Answer

Exemption from TRID disclosures

Question 2

Which federal law requires lenders to inform applicants of the action taken on their credit application within 30 days?

Accepted Answer

ECOA

Answer

RESPA

Answer

TILA

Answer

FCRA

Question 3

Under the CAN-SPAM Act, electronic marketing communications from MLOs must include:

Accepted Answer

A clear opt-out mechanism and the sender's physical postal address

Answer

The borrower's credit score

Answer

The exact APR for offered products

Answer

A disclosure approved by the CFPB

Question 4

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to:

Accepted Answer

Provide privacy notices and safeguard consumer financial information

Answer

Disclose all lending fees in advance

Answer

Offer loans to all applicants regardless of creditworthiness

Answer

Register with the SEC

Question 5

An MLO who accepts a gift valued over $50 from a settlement service provider in exchange for referrals may be violating:

Accepted Answer

RESPA Section 8

Answer

TILA

Answer

FCRA

Answer

Dodd-Frank Section 1403

Question 6

Which agency has primary supervisory authority over non-bank mortgage companies' compliance with federal consumer financial protection laws?

Accepted Answer

CFPB

Answer

OCC

Answer

FDIC

Answer

Federal Reserve