Mortgage Federal Laws and Regulations 5

Question 1

A mortgage broker receives a yield spread premium (YSP) tied to placing a borrower in a higher-rate loan. Under CFPB LO compensation rules, this practice is:

Accepted Answer

Prohibited as a form of steering

Answer

Permitted with full TILA disclosure

Answer

Allowed only on jumbo loans over $1 million

Answer

Permitted if the borrower signs a written acknowledgment

Question 2

Which federal statute requires lenders to disclose the transfer of mortgage servicing rights to borrowers?

Accepted Answer

RESPA

Answer

HMDA

Answer

ECOA

Answer

TILA

Question 3

Under the Home Ownership and Equity Protection Act (HOEPA), loans exceeding the rate or fee thresholds are subject to:

Accepted Answer

Enhanced disclosures and restrictions on loan terms

Answer

Automatic denial by Fannie Mae

Answer

Mandatory referral to HUD counseling only

Answer

Unlimited right of rescission for any reason

Question 4

Under Regulation X's 2014 servicing rules, servicers must make live contact with delinquent borrowers by the:

Accepted Answer

36th day of delinquency

Answer

15th day of delinquency

Answer

21st day of delinquency

Answer

60th day of delinquency

Question 5

Under ECOA, a lender must provide an adverse action notice within how many days of a credit decision?

Accepted Answer

30 days

Answer

10 days

Answer

45 days

Answer

60 days

Question 6

Which provision of the Dodd-Frank Act created the Ability-to-Repay and Qualified Mortgage standards?

Accepted Answer

Section 1411 — ATR and QM Standards

Answer

Section 941 — Risk Retention

Answer

Section 1031 — Prohibition on Abusive Acts

Answer

Section 165 — Systemic Risk

Question 7

Under TILA, discount points paid by the borrower to reduce the interest rate are classified as:

Accepted Answer

Finance charges included in the APR calculation

Answer

Non-finance charges excluded from the APR

Answer

Third-party fees excluded from the APR

Answer

Escrow charges outside TILA coverage