Federal Mortgage-Related Laws Flashcards

How many hours of NMLS-approved pre-licensure education does the SAFE Act require for a new state-licensed mortgage loan originator?

Answer: 20 hours

The SAFE Act requires 20 hours: 3 federal law, 3 ethics, 2 nontraditional mortgage products, and 12 electives.

How many hours of continuing education must a licensed MLO complete each year to renew?

Answer: 8 hours

Annual CE requires 8 hours: 3 federal law, 2 ethics, 2 nontraditional lending, and 1 elective.

Under Regulation Z loan originator compensation rules, which practice is generally prohibited?

Answer: Basing compensation on the terms of the transaction, such as the interest rate

Compensation may not be based on loan terms or proxies for them, though volume-based pay is generally allowed.

Under the ability-to-repay and qualified mortgage rules, the general cap on points and fees for a QM loan of $100,000 or more (indexed) is:

Answer: 3% of the total loan amount

A QM generally cannot have points and fees exceeding 3% of the total loan amount, with higher thresholds for smaller loans.

Under the FCRA, a consumer denied credit based on a credit report may obtain a free copy of the report if they request it within:

Answer: 60 days

The FCRA entitles the consumer to a free report if requested within 60 days of receiving the adverse action notice.

A non-bank residential mortgage lender or originator subject to BSA must file a Suspicious Activity Report within how many calendar days after initially detecting facts that may constitute a basis for filing?

Answer: 30 days

SARs are due within 30 calendar days of detection, extendable to 60 if no suspect is identified.

Which basis of discrimination is covered by ECOA but NOT by the federal Fair Housing Act?

Answer: Marital status

ECOA prohibits discrimination based on marital status and receipt of public assistance, while the Fair Housing Act does not list marital status.