Mortgage Federal Lending Regulations 3

Question 1

Under TILA, the Annual Percentage Rate (APR) must be disclosed to within how many basis points for a regular mortgage transaction?

Accepted Answer

1/8 of 1% (12.5 bps)

Answer

1/4 of 1% (25 bps)

Answer

1/2 of 1% (50 bps)

Answer

1% (100 bps)

Question 2

Which regulation implements the Real Estate Settlement Procedures Act (RESPA)?

Accepted Answer

Regulation X

Answer

Regulation Z

Answer

Regulation B

Answer

Regulation C

Question 3

A lender requires a borrower to use a specific title company affiliated with the lender without disclosing the relationship. This most likely violates:

Accepted Answer

RESPA's affiliated business arrangement disclosure requirements

Answer

TILA's APR disclosure rules

Answer

ECOA's anti-discrimination provisions

Answer

HMDA's data reporting requirements

Question 4

Under the SAFE Act, a state-licensed mortgage loan originator must pass a national test with a minimum score of:

Accepted Answer

75%

Answer

70%

Answer

80%

Answer

65%

Question 5

HOEPA (Home Ownership and Equity Protection Act) applies to which type of mortgage loans?

Accepted Answer

High-cost home loans exceeding APR and points/fees thresholds

Answer

All conforming conventional loans

Answer

FHA-insured purchase transactions only

Answer

Loans with LTV ratios above 80%

Question 6

Under TRID, the Closing Disclosure must be received by the borrower at least how many business days before consummation?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

7 business days

Question 7

Which act requires federally chartered depository institutions to meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods?

Accepted Answer

Community Reinvestment Act (CRA)

Answer

Fair Housing Act

Answer

Equal Credit Opportunity Act

Answer

Home Mortgage Disclosure Act