Mortgage Federal Mortgage-Related Laws 3

Question 1

Under ECOA, a creditor must notify a loan applicant of an adverse action within how many days of receiving a completed application?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 2

Which protected class was added to the Fair Housing Act by the 1988 amendments?

Accepted Answer

Familial status and disability

Answer

Race and national origin

Answer

Sex and religion

Answer

Marital status and age

Question 3

HMDA requires covered lenders to collect and report data on mortgage applications primarily to:

Accepted Answer

Detect and deter discriminatory lending patterns

Answer

Calculate the lender's Community Reinvestment Act rating

Answer

Set maximum allowable interest rates by geography

Answer

Verify borrower income for underwriting purposes

Question 4

Under the Fair Housing Act, which of the following lender actions is considered illegal steering?

Accepted Answer

Directing minority applicants toward higher-cost loan products without objective basis

Answer

Offering a higher rate to a borrower with a low credit score

Answer

Declining a loan based on insufficient income documentation

Answer

Requiring a larger down payment due to a low appraisal

Question 5

The Community Reinvestment Act (CRA) was enacted primarily to address:

Accepted Answer

Redlining and the failure of banks to serve low- and moderate-income communities

Answer

Predatory lending in high-cost mortgage markets

Answer

Excessive mortgage origination fees charged to first-time buyers

Answer

Discrimination in the secondary mortgage market

Question 6

Which agency is primarily responsible for enforcing ECOA in the context of mortgage lending by non-bank mortgage companies?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

Federal Reserve Board

Answer

Office of the Comptroller of the Currency

Answer

Federal Housing Finance Agency (FHFA)

Question 7

Under ECOA, a creditor MAY ask about an applicant's marital status in which situation?

Accepted Answer

When state property law directly affects the creditor's rights in the collateral

Answer

When the applicant is applying for an unsecured personal loan

Answer

Only when the co-applicant requests the information

Answer

Never — marital status cannot be collected under any circumstance