Federal Mortgage-Related Laws Flashcards

Under the TILA-RESPA Integrated Disclosure rule, the Closing Disclosure must be received by the consumer at least how long before consummation?

Answer: 3 business days

The consumer must receive the Closing Disclosure at least 3 business days before consummation.

Under Regulation X, generally how far in advance of the effective date must a servicing transfer notice be sent to the borrower?

Answer: At least 15 days

The transferor and transferee must send notice at least 15 days before the transfer's effective date.

Under Regulation X servicing rules, a servicer generally may not make the first notice or filing for foreclosure unless the borrower is more than how many days delinquent?

Answer: 120 days

Servicers generally cannot begin foreclosure until the borrower is more than 120 days delinquent.

Under HOEPA, a first-lien mortgage is generally high-cost if its APR exceeds APOR by more than:

Answer: 6.5 percentage points

HOEPA's APR trigger for most first-lien loans is 6.5 percentage points above APOR.

Which law established the Consumer Financial Protection Bureau?

Answer: The Dodd-Frank Act

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created the CFPB.

Under Regulation B, a creditor may generally NOT require the signature of an applicant's spouse on a credit instrument if:

Answer: The applicant individually qualifies under the creditor's standards

If the applicant qualifies individually, a creditor generally cannot require the spouse to sign, except where needed under state law to secure the collateral.

Under RESPA, the escrow account cushion a servicer may require is limited to:

Answer: One-sixth of annual disbursements

RESPA limits the cushion to one-sixth of estimated annual disbursements, or two months' worth.