Regulatory Compliance Flashcards

Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a loan application?

Answer: TRID (TILA-RESPA Integrated Disclosure)

TRID, which integrates TILA and RESPA disclosure requirements, requires lenders to provide a Loan Estimate within three business days of receiving a mortgage application.

A property manager who accepts a kickback from a maintenance contractor without the owner's knowledge is violating:

Answer: Fiduciary duty and RESPA

Accepting undisclosed kickbacks violates the property manager's fiduciary duty to the owner and may also violate RESPA's prohibition on kickbacks for settlement services.

The Home Mortgage Disclosure Act (HMDA) primarily requires lenders to:

Answer: Collect and report data on mortgage loan applications

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

A licensee must report a change of business address to the state licensing authority within:

Answer: 30 days

Most states require licensees to notify the licensing authority of any address change within 30 days to ensure the authority can maintain accurate contact records.

Which of the following actions would constitute a violation of antitrust laws in real estate?

Answer: Two competing brokers agreeing to charge the same commission rates

Price-fixing between competitors—including agreement on commission rates—is a per se violation of the Sherman Antitrust Act.

Under Regulation Z (Truth in Lending Act), the Annual Percentage Rate (APR) must be disclosed because:

Answer: It reflects the true cost of credit including fees

The APR includes the interest rate plus certain fees and costs, giving borrowers a standardized measure of the true cost of credit for comparison shopping.

A real estate licensee who advertises property in a way that indicates a preference for buyers of a particular religion is violating:

Answer: The Fair Housing Act

The Fair Housing Act prohibits discriminatory advertising that indicates a preference, limitation, or discrimination based on religion or other protected classes.