Federal Mortgage-Related Laws Flashcards
7 cards from real Mortgage practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Federal Mortgage-Related Laws flashcards as text
The SAFE Act requires mortgage loan originators (MLOs) to complete how many hours of pre-licensing education before being licensed?
Answer: 20 hours
The SAFE Mortgage Licensing Act requires a minimum of 20 hours of NMLS-approved pre-licensing education for state-licensed MLOs.
Under the Gramm-Leach-Bliley Act (GLBA), mortgage lenders must provide borrowers with a privacy notice:
Answer: At account opening and annually thereafter
GLBA requires financial institutions to provide a privacy notice at the time a customer relationship is established and annually thereafter.
The Bank Secrecy Act (BSA) requires mortgage companies to file a Suspicious Activity Report (SAR) within how many days of detecting a suspicious transaction?
Answer: 45 days
BSA regulations require covered institutions to file a SAR within 30 days of initial detection of a suspicious transaction, with a 60-day extension if no suspect is identified — the standard deadline is 30 days.
Under the Fair Credit Reporting Act (FCRA), if a borrower disputes information in their credit report, the credit bureau must investigate and respond within how many days?
Answer: 30 days
FCRA generally requires credit bureaus to complete investigations of disputed items within 30 days (extended to 45 days if the consumer provides additional information).
The SAFE Act created the Nationwide Multistate Licensing System (NMLS) primarily to:
Answer: Establish a uniform licensing and registration system for mortgage loan originators
The SAFE Act mandated NMLS as a uniform, centralized registry for licensing and tracking mortgage loan originators across states.
Under the FCRA, an adverse action notice based on a credit report must inform the applicant of their right to obtain a free copy of their credit report within how many days?
Answer: 60 days
FCRA requires the adverse action notice to inform the consumer they can obtain a free copy of the credit report used within 60 days of the adverse action notice.
Which federal law requires mortgage servicers to provide a borrower with a written response acknowledging receipt of a Qualified Written Request (QWR) within 5 business days?
Answer: RESPA
RESPA Section 6 requires servicers to acknowledge receipt of a Qualified Written Request within 5 business days and resolve it within 30 business days.