Mortgage Loan Originator TILA and RESPA Compliance 3

Question 1

Which of the following triggers a revised Loan Estimate under TRID?

Accepted Answer

Borrower requests a different loan product after initial LE

Answer

A valid changed circumstance such as a borrower-requested change in loan product allows the lender to issue a revised Loan Estimate and potentially reset tolerances.

Question 2

Under TILA, what is the 'amount financed'?

Accepted Answer

The loan amount minus prepaid finance charges

Answer

The amount financed equals the loan amount minus any prepaid finance charges, representing the actual dollars the borrower has use of.

Question 3

RESPA applies to federally related mortgage loans, which includes loans:

Accepted Answer

Secured by a lien on residential real property involving federally insured lenders or federal programs

Answer

RESPA covers loans secured by residential real property when made by federally insured lenders, government-sponsored enterprises, or otherwise involving federal connection.

Question 4

Which party is responsible for ensuring the Closing Disclosure is delivered on time under TRID?

Accepted Answer

The creditor (lender)

Answer

The creditor bears ultimate responsibility under TRID for ensuring the Closing Disclosure is provided to the borrower at least three business days before consummation.

Question 5

Under TILA's right of rescission, which transaction is NOT eligible for rescission?

Accepted Answer

Purchase money mortgage on primary residence

Answer

The right of rescission under TILA does not apply to purchase money mortgages used to acquire the dwelling that secures the loan.

Mortgage Loan Originator Practice Test

Mortgage Loan Originator Practice Test

Mortgage Loan Originator TILA and RESPA Compliance 3