Regulations & Compliance Flashcards
7 cards from real CMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulations & Compliance flashcards as text
A mortgage servicer fails to credit a payment on the date received. Under RESPA, how many days does a servicer have to credit a payment to the borrower's account?
Answer: Same business day received
RESPA requires mortgage servicers to credit a periodic payment to the borrower's loan account as of the date of receipt.
Which of the following triggers a revised Loan Estimate under TRID rules?
Answer: A valid changed circumstance such as a natural disaster affecting the property
A revised Loan Estimate may be issued when a valid changed circumstance occurs, such as a natural disaster, new information about the borrower, or a borrower-requested change.
Under the Truth in Lending Act (TILA), what is the right of rescission?
Answer: A borrower's right to cancel certain mortgage transactions within three business days
TILA grants borrowers the right to rescind certain non-purchase, consumer mortgage transactions (such as refinances on a primary residence) within three business days of consummation.
Under the Bank Secrecy Act (BSA), mortgage companies are required to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?
Answer: 30 calendar days
Mortgage companies subject to the BSA must file a SAR within 30 calendar days of initially detecting a suspicious transaction.
Which federal law prohibits lenders from inflating appraisals or applying pressure on appraisers to reach a predetermined value?
Answer: The Appraisal Independence Requirements under Dodd-Frank/TILA
Dodd-Frank's appraisal independence requirements under TILA prohibit coercion, bribery, or any attempt to influence appraisers to produce a predetermined value.
A lender's practice of denying mortgage loans to qualified applicants in certain geographic areas based on the racial composition of those neighborhoods is known as:
Answer: Redlining
Redlining is the illegal practice of refusing to originate mortgage loans in minority neighborhoods regardless of applicants' individual qualifications.
Under Regulation X (RESPA), an escrow account analysis must be conducted at least:
Answer: Annually
RESPA requires servicers to conduct an escrow account analysis at least once every 12 months to ensure the account is not over- or under-funded.