Mortgage Mortgage Federal Lending Regulations Questions and Answers 3

Question 1

Under the Homeowners Protection Act (HPA), at what loan-to-value ratio must a servicer automatically cancel private mortgage insurance (PMI) on a conventional loan?

Accepted Answer

78%

Answer

80%

Answer

75%

Answer

70%

Question 2

Which regulation implements the Fair Housing Act's prohibition against discriminatory mortgage lending practices?

Accepted Answer

Regulation B

Answer

Regulation Z

Answer

Regulation X

Answer

Regulation C

Question 3

What is the Qualified Mortgage (QM) rule's general debt-to-income ratio limit under the ability-to-repay requirement?

Accepted Answer

43%

Answer

36%

Answer

41%

Answer

50%

Question 4

Under RESPA, how long does a mortgage servicer have to acknowledge a qualified written request from a borrower?

Accepted Answer

5 business days

Answer

10 business days

Answer

20 business days

Answer

30 business days

Question 5

Which federal law requires flood insurance for properties in Special Flood Hazard Areas when the mortgage is federally backed?

Accepted Answer

National Flood Insurance Act

Answer

National Environmental Policy Act

Answer

Stafford Disaster Relief Act

Answer

Federal Emergency Management Act

Question 6

What is the primary purpose of the Community Reinvestment Act (CRA) as it relates to mortgage lending?

Accepted Answer

To encourage banks to meet the credit needs of their entire communities, including low-income areas

Answer

To set maximum interest rates on home loans

Answer

To provide government-backed mortgage insurance

Answer

To establish uniform appraisal standards nationwide