Federal Regulations and Ethics Flashcards
6 cards from real Mortgage Loan Originator practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Federal Regulations and Ethics flashcards as text
Under the Dodd-Frank Act, a 'Qualified Mortgage' (QM) provides lenders with:
Answer: A presumption of compliance with the ability-to-repay rule
A QM provides either a safe harbor (for lower-priced QMs) or a rebuttable presumption (for higher-priced QMs) that the lender satisfied the ability-to-repay (ATR) requirement.
Which federal law requires lenders to inform applicants of the action taken on their credit application within 30 days?
Answer: ECOA
ECOA requires creditors to notify applicants of adverse action within 30 days of receiving a completed application, or 30 days after taking the adverse action.
Under the CAN-SPAM Act, electronic marketing communications from MLOs must include:
Answer: A clear opt-out mechanism and the sender's physical postal address
CAN-SPAM requires commercial emails to include a functioning opt-out mechanism and a valid physical postal address for the sender.
The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to:
Answer: Provide privacy notices and safeguard consumer financial information
GLBA requires financial institutions to notify consumers about their information-sharing practices and implement security measures to protect nonpublic personal information.
An MLO who accepts a gift valued over $50 from a settlement service provider in exchange for referrals may be violating:
Answer: RESPA Section 8
RESPA Section 8 prohibits giving or receiving anything of value as a referral fee, making referral-based gifts a clear violation regardless of dollar amount.
Which agency has primary supervisory authority over non-bank mortgage companies' compliance with federal consumer financial protection laws?
Answer: CFPB
The Consumer Financial Protection Bureau (CFPB) has supervisory and enforcement authority over non-bank mortgage originators for federal consumer financial protection laws.