Mortgage Mortgage Federal Lending Regulations Questions and Answers 2

Question 1

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

Accepted Answer

Accepting kickbacks for referrals of settlement services

Answer

RESPA Section 8 prohibits kickbacks or fee-splitting for referrals of settlement services.

Question 2

What is the maximum timeframe a lender has to provide a Loan Estimate after receiving a mortgage application under TRID rules?

Accepted Answer

3 business days

Answer

Under TILA-RESPA Integrated Disclosure (TRID) rules, lenders must provide a Loan Estimate within 3 business days of receiving a loan application.

Question 3

Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?

Accepted Answer

Truth in Lending Act (TILA)

Answer

The Truth in Lending Act (TILA) requires lenders to disclose the APR and other credit terms to borrowers.

Question 4

Under the Equal Credit Opportunity Act (ECOA), which factor may a lender legally consider when evaluating a mortgage application?

Accepted Answer

Applicant's credit history

Answer

ECOA prohibits discrimination based on race, color, religion, national origin, sex, marital status, or age, but allows consideration of creditworthiness factors like credit history.

Question 5

What does the Home Mortgage Disclosure Act (HMDA) primarily require from covered lenders?

Accepted Answer

Report data about mortgage lending activity to regulators

Answer

HMDA requires covered lenders to collect and report data about their mortgage lending activity to help identify potential discriminatory lending patterns.

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Mortgage Practice Test

Mortgage Mortgage Federal Lending Regulations Questions and Answers 2