Mortgage Federal Lending Regulations 5

Question 1

Under the Fair Credit Reporting Act (FCRA), a consumer has the right to receive a free credit report from each of the three major bureaus how often?

Accepted Answer

Once every 12 months

Answer

Once every 6 months

Answer

Twice per year

Answer

Once per lifetime

Question 2

A lender provides a borrower with a Loan Estimate but then fails to honor the quoted interest rate after the lock expires due to lender delay. This raises concerns under:

Accepted Answer

TRID and potential UDAAP violations

Answer

HMDA reporting requirements

Answer

RESPA Section 9 affiliated business rules

Answer

SAFE Act licensing standards

Question 3

Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a mortgage application?

Accepted Answer

TILA-RESPA Integrated Disclosure (TRID) rule

Answer

The SAFE Act

Answer

The Fair Lending Act

Answer

The Community Reinvestment Act

Question 4

Under ECOA, when a creditor makes a counteroffer and the applicant does not accept it, the creditor must send an adverse action notice within:

Accepted Answer

90 days of the counteroffer

Answer

30 days of the original application

Answer

3 business days of the counteroffer

Answer

60 days of the counteroffer

Question 5

Which entity is primarily responsible for enforcing HMDA data accuracy and fair lending compliance for non-bank mortgage lenders?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Federal Reserve Board

Answer

Department of Housing and Urban Development (HUD)

Answer

Office of Thrift Supervision (OTS)

Question 6

A prepayment penalty on a Qualified Mortgage (QM) is prohibited after how long from loan consummation?

Accepted Answer

3 years

Answer

2 years

Answer

5 years

Answer

1 year

Question 7

Under RESPA, a lender's escrow account analysis must be performed at least:

Accepted Answer

Annually

Answer

Monthly

Answer

Quarterly

Answer

Every two years