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

Zero tolerance charges cannot increase at all from the Loan Estimate to the Closing Disclosure; any increase is a tolerance violation requiring a cure.

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

HMDA data is used by regulators and the public to identify fair lending issues and discriminatory patterns in mortgage lending.

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

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in residential real estate transactions including mortgage lending.

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

Fees for services provided by the lender or required services where the borrower cannot shop fall in the zero-tolerance category.

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

ECOA requires creditors to notify applicants of the credit decision within 30 days of receiving a completed application.

Mortgage Practice Test

Mortgage Practice Test

Mortgage Federal Lending Regulations 2