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

FCRA entitles consumers to one free credit report per year from each of the three major credit reporting agencies via AnnualCreditReport.com.

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

Failure to honor disclosed terms due to lender-caused delays can constitute unfair, deceptive, or abusive acts or practices (UDAAP) under Dodd-Frank in addition to TRID concerns.

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

TRID, effective October 2015, requires the Loan Estimate to be delivered or placed in the mail no later than three business days after application receipt.

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

If an applicant does not accept a counteroffer, ECOA requires the creditor to send an adverse action notice within 90 days of notifying the applicant 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

The CFPB has supervisory and enforcement authority over non-bank mortgage lenders for HMDA, TILA, RESPA, and other federal consumer financial laws.

Mortgage Practice Test

Mortgage Practice Test

Mortgage Federal Lending Regulations 5