Documentation & Legal Requirements Flashcards
7 cards from real CRU practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Documentation & Legal Requirements flashcards as text
Under RESPA, within how many business days must a lender provide a Loan Estimate to a borrower after receiving a completed loan application?
Answer: 3 business days
RESPA/TRID requires the Loan Estimate to be delivered or placed in the mail no later than 3 business days after receiving a completed application.
Which federal law requires lenders to collect and report data on mortgage applications by race, gender, and income to identify potential discriminatory lending patterns?
Answer: Home Mortgage Disclosure Act (HMDA)
HMDA requires covered lenders to collect, report, and publicly disclose loan-level data to help identify potential discriminatory lending patterns.
A borrower's Closing Disclosure must be received at least how many business days before loan consummation under TRID?
Answer: 3 business days
TRID mandates the borrower receive the Closing Disclosure at least 3 business days before loan consummation to allow time for review.
Which document replaced the HUD-1 Settlement Statement and Truth-in-Lending disclosure for most closed-end residential mortgage transactions after October 3, 2015?
Answer: Loan Estimate and Closing Disclosure
TRID (the TILA-RESPA Integrated Disclosure rule) replaced the GFE and HUD-1 with the Loan Estimate and Closing Disclosure forms.
Under the Equal Credit Opportunity Act (ECOA), a lender must provide a written notice of adverse action within how many days of receiving a completed application?
Answer: 30 days
ECOA requires lenders to notify applicants of adverse action (denial, counteroffer, etc.) within 30 days of receiving a completed application.
Which section of RESPA prohibits the payment of kickbacks or referral fees for the referral of settlement service business?
Answer: Section 8
RESPA Section 8 prohibits giving or receiving any fee, kickback, or thing of value for the referral of settlement service business.
The Right of Rescission under the Truth in Lending Act (TILA) allows borrowers to cancel which type of transaction within 3 business days?
Answer: Refinances and home equity loans on a primary residence
TILA's right of rescission applies to non-purchase refinances and home equity loans secured by the borrower's primary residence, not purchase money mortgages.