PrepL Regulatory Compliance 3

Question 1

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

Accepted Answer

TRID (TILA-RESPA Integrated Disclosure)

Answer

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

Question 2

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

Accepted Answer

Fiduciary duty and RESPA

Answer

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.

Question 3

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

Accepted Answer

Collect and report data on mortgage loan applications

Answer

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

Question 4

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

Accepted Answer

30 days

Answer

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.

Question 5

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

Accepted Answer

Two competing brokers agreeing to charge the same commission rates

Answer

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

(PrepL) Preparation for Licensing Practice Test

(PrepL) Preparation for Licensing Practice Test

PrepL Regulatory Compliance 3