Mortgage Mortgage Federal Laws and Regulations Questions and Answers 2

Question 1

Under the Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited?

Accepted Answer

Kickbacks or referral fees for settlement services

Answer

RESPA Section 8 explicitly prohibits kickbacks, fee-splitting, and unearned fees in connection with federally related mortgage loans.

Question 2

What is the primary purpose of the Home Mortgage Disclosure Act (HMDA)?

Accepted Answer

To require lenders to report lending data for fair lending analysis

Answer

HMDA requires covered lenders to collect and publicly disclose mortgage lending data so regulators and the public can monitor for discriminatory lending patterns.

Question 3

Under the Equal Credit Opportunity Act (ECOA), a lender must provide an adverse action notice within how many days of taking negative action on a mortgage application?

Accepted Answer

30 days

Answer

ECOA and Regulation B require creditors to notify applicants of adverse action within 30 days of taking such action.

Question 4

Which federal law requires mortgage servicers to provide borrowers with an annual escrow account statement?

Accepted Answer

Real Estate Settlement Procedures Act (RESPA)

Answer

RESPA Section 10 requires mortgage servicers to conduct an annual escrow account analysis and provide borrowers with a statement of activity.

Question 5

The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) requires mortgage loan originators to do which of the following?

Accepted Answer

Obtain a state license or federal registration through the NMLS

Answer

The SAFE Act mandates that all mortgage loan originators be either state-licensed or federally registered through the Nationwide Multistate Licensing System (NMLS).

Mortgage Practice Test

Mortgage Practice Test

Mortgage Mortgage Federal Laws and Regulations Questions and Answers 2