Mortgage Federal Lending Regulations Questions and Answers

Question 1

A mortgage loan originator gives a real estate agent a $50 gift card for each referral that results in a closed loan. Which federal regulation is being violated?

Accepted Answer

Real Estate Settlement Procedures Act (RESPA)

Answer

Equal Credit Opportunity Act (ECOA)

Answer

Truth in Lending Act (TILA)

Answer

Home Mortgage Disclosure Act (HMDA)

Question 2

Under the TILA-RESPA Integrated Disclosure (TRID) rule, which of the following events would require a new 3-day waiting period for the Closing Disclosure?

Accepted Answer

The annual percentage rate (APR) becomes inaccurate.

Answer

A minor typographical error is found on the disclosure.

Answer

The seller's real estate commission changes.

Answer

The borrower decides to purchase homeowner's insurance from a different provider.

Question 3

A loan applicant is denied a mortgage. According to the Equal Credit Opportunity Act (ECOA), which of the following actions is the lender required to take?

Accepted Answer

Provide a written statement of the specific reasons for the denial.

Answer

Provide the applicant with a copy of their credit report automatically.

Answer

Suggest an alternative lender who may approve the loan.

Answer

Disclose the applicant's credit score to them.

Question 4

Which of the following is NOT a protected class under the Equal Credit Opportunity Act (ECOA)?

Accepted Answer

Disability Status

Answer

Marital Status

Answer

Source of Income (as long as it's legal)

Answer

Age

Question 5

A consumer is refinancing their primary residence with a new lender. Under the Truth in Lending Act (TILA), they have a right to rescind the loan. How long is this rescission period?

Accepted Answer

3 business days after closing

Answer

24 hours after closing

Answer

7 calendar days after closing

Answer

There is no right of rescission on a refinance.

Question 6

According to the SAFE Act, what is the minimum number of hours of continuing education a state-licensed mortgage loan originator must complete annually?

Accepted Answer

8 hours

Answer

10 hours

Answer

20 hours

Answer

12 hours