Mortgage Federal Laws and Regulations 2

Question 1

Under RESPA, which practice is prohibited between settlement service providers?

Accepted Answer

Paying or receiving kickbacks for referrals

Answer

Sharing client contact information

Answer

Advertising joint services

Answer

Offering bundled closing packages

Question 2

The Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data primarily to:

Accepted Answer

Identify possible discriminatory lending patterns

Answer

Calculate default risk scores

Answer

Verify borrower income accuracy

Answer

Determine maximum loan limits

Question 3

Which federal law establishes the right of rescission for certain mortgage transactions?

Accepted Answer

TILA

Answer

RESPA

Answer

HMDA

Answer

ECOA

Question 4

A lender denies a loan application citing the applicant's receipt of public assistance income as the reason. This most likely violates:

Accepted Answer

ECOA

Answer

RESPA

Answer

TILA

Answer

FIRREA

Question 5

Under Dodd-Frank, which agency has primary supervisory authority over large non-bank mortgage servicers?

Accepted Answer

CFPB

Answer

OCC

Answer

FDIC

Answer

HUD

Question 6

The Homeowners Protection Act requires automatic cancellation of PMI when the loan balance reaches what percentage of the original property value?

Accepted Answer

78%

Answer

85%

Answer

80%

Answer

75%

Question 7

Which federal regulation implements ECOA's requirements as they apply to mortgage lending?

Accepted Answer

Regulation B

Answer

Regulation C

Answer

Regulation X

Answer

Regulation Z