Mortgage Federal Mortgage-Related Laws 5

Question 1

The SAFE Act requires mortgage loan originators (MLOs) to complete how many hours of pre-licensing education before being licensed?

Accepted Answer

20 hours

Answer

8 hours

Answer

40 hours

Answer

30 hours

Question 2

Under the Gramm-Leach-Bliley Act (GLBA), mortgage lenders must provide borrowers with a privacy notice:

Accepted Answer

At account opening and annually thereafter

Answer

Only at the time of application

Answer

Only when sharing information with third parties

Answer

At closing only

Question 3

The Bank Secrecy Act (BSA) requires mortgage companies to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?

Accepted Answer

45 days

Answer

15 days

Answer

30 days

Answer

60 days

Question 4

Under the Fair Credit Reporting Act (FCRA), if a borrower disputes information in their credit report, the credit bureau must investigate and respond within how many days?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 5

The SAFE Act created the Nationwide Multistate Licensing System (NMLS) primarily to:

Accepted Answer

Establish a uniform licensing and registration system for mortgage loan originators

Answer

Set maximum mortgage interest rates at the federal level

Answer

Replace state mortgage licensing laws entirely with federal standards

Answer

Create a centralized appraisal database for all residential properties

Question 6

Under the FCRA, an adverse action notice based on a credit report must inform the applicant of their right to obtain a free copy of their credit report within how many days?

Accepted Answer

60 days

Answer

30 days

Answer

45 days

Answer

90 days

Question 7

Which federal law requires mortgage servicers to provide a borrower with a written response acknowledging receipt of a Qualified Written Request (QWR) within 5 business days?

Accepted Answer

RESPA

Answer

TILA

Answer

FCRA

Answer

ECOA