Mortgage Mortgage Federal Lending Regulations Questions and Answers 2

Question 1

Under the Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited?

Accepted Answer

Accepting kickbacks for referrals of settlement services

Answer

Providing a Good Faith Estimate to borrowers

Answer

Disclosing affiliated business arrangements

Answer

Allowing borrowers to shop for title insurance

Question 2

What is the maximum timeframe a lender has to provide a Loan Estimate after receiving a mortgage application under TRID rules?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

7 business days

Question 3

Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?

Accepted Answer

Truth in Lending Act (TILA)

Answer

Fair Housing Act

Answer

Community Reinvestment Act

Answer

Home Mortgage Disclosure Act

Question 4

Under the Equal Credit Opportunity Act (ECOA), which factor may a lender legally consider when evaluating a mortgage application?

Accepted Answer

Applicant's credit history

Answer

Applicant's race

Answer

Applicant's marital status

Answer

Applicant's national origin

Question 5

What does the Home Mortgage Disclosure Act (HMDA) primarily require from covered lenders?

Accepted Answer

Report data about mortgage lending activity to regulators

Answer

Maintain escrow accounts for all borrowers

Answer

Offer below-market interest rates in underserved areas

Answer

Provide free credit counseling to first-time homebuyers

Question 6

Under the Dodd-Frank Act, what entity was created to oversee consumer financial protection in mortgage lending?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Federal Housing Finance Agency (FHFA)

Answer

Office of the Comptroller of the Currency (OCC)

Answer

Federal Deposit Insurance Corporation (FDIC)