SAFE Federal Mortgage-Related Laws 2

Question 1

Under RESPA, a 'controlled business arrangement' (now called an 'affiliated business arrangement') requires the referrer to:

Accepted Answer

Provide an Affiliated Business Arrangement disclosure to the consumer

Answer

Obtain HUD approval before making referrals

Answer

Charge the consumer a fee for the referral

Answer

Register the arrangement with the CFPB annually

Question 2

The Homeowners Protection Act (HPA) requires automatic cancellation of PMI when the borrower's LTV reaches what threshold based on the original amortization schedule?

Accepted Answer

78%

Answer

80%

Answer

75%

Answer

70%

Question 3

Under HMDA, which of the following institutions is NOT generally required to report mortgage data?

Accepted Answer

A small non-depository lender originating fewer than 25 closed-end mortgages annually

Answer

A bank with assets over $54 million located in an MSA

Answer

A credit union originating 25 or more closed-end loans in the prior year

Answer

A mortgage company originating 100 or more closed-end loans in the prior year

Question 4

The Equal Credit Opportunity Act (ECOA) requires creditors to notify applicants of adverse action within how many days for applications involving credit primarily for personal use?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 5

Under the Gramm-Leach-Bliley Act (GLBA), financial institutions must provide customers with a privacy notice:

Accepted Answer

At the time of establishing a customer relationship and annually thereafter

Answer

Only when the customer requests one

Answer

Only when nonpublic personal information will be shared with third parties

Answer

Every two years as long as the relationship continues

Question 6

Which federal law specifically prohibits lenders from discriminating in residential real estate transactions based on race, color, national origin, religion, sex, familial status, or disability?

Accepted Answer

Fair Housing Act

Answer

Equal Credit Opportunity Act

Answer

Community Reinvestment Act

Answer

Home Mortgage Disclosure Act

Question 7

Under Regulation Z, the right of rescission for a refinance of a primary residence allows the consumer how many business days to cancel the transaction?

Accepted Answer

3 business days

Answer

1 business day

Answer

5 business days

Answer

7 business days