Mortgage Federal Lending Regulations 2

Question 1

Under RESPA, what is the maximum tolerance for increases in third-party settlement charges in the 'zero tolerance' category?

Accepted Answer

0%

Answer

10%

Answer

15%

Answer

25%

Question 2

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

Accepted Answer

Identify possible discriminatory lending patterns

Answer

Calculate average mortgage interest rates nationally

Answer

Set conforming loan limits annually

Answer

License mortgage loan originators

Question 3

Which federal law prohibits a lender from discriminating based on race, color, religion, national origin, sex, familial status, or disability in residential mortgage lending?

Accepted Answer

Fair Housing Act

Answer

Equal Credit Opportunity Act

Answer

Community Reinvestment Act

Answer

Home Ownership and Equity Protection Act

Question 4

A lender charges a borrower a fee not disclosed on the Loan Estimate for a service the lender controls. Under TRID, this is most likely a violation of which tolerance category?

Accepted Answer

Zero tolerance — lender-controlled fees cannot increase

Answer

10% tolerance — aggregate limit applies

Answer

Unlimited tolerance — lender fees are exempt

Answer

5% tolerance — applies to all third-party fees

Question 5

Under ECOA, within how many days must a creditor notify an applicant of action taken on a completed credit application?

Accepted Answer

30 days

Answer

3 business days

Answer

7 business days

Answer

60 days

Question 6

The Dodd-Frank Act created which agency specifically to protect consumers in financial transactions, including mortgages?

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)

Question 7

Under the Ability-to-Repay (ATR) rule, which of the following is NOT one of the eight underwriting factors a lender must consider?

Accepted Answer

Borrower's credit score tier preference

Answer

Current income and assets

Answer

Monthly payment on the covered transaction

Answer

Monthly debt obligations