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

RESPA requires settlement service providers to give consumers an Affiliated Business Arrangement (AfBA) disclosure when referring them to an affiliated company.

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

The HPA mandates automatic PMI cancellation when the mortgage balance reaches 78% LTV based on the original amortization schedule, even without borrower request.

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

Non-depository lenders originating fewer than 25 closed-end mortgage loans in each of the two preceding calendar years are exempt from HMDA reporting.

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

ECOA requires creditors to provide notice of adverse action within 30 days of receiving a completed credit application.

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

GLBA requires financial institutions to give customers a privacy notice at account opening and annually for as long as the customer relationship continues.

(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test

(SAFE) Certified Secure and Fair Enforcement Mortgage Loan Originator Practice Test

SAFE Federal Mortgage-Related Laws 2