Uniform State Content 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 Uniform State Content flashcards as text
Which federal act established the Consumer Financial Protection Bureau (CFPB)?
Answer: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
The Dodd-Frank Act of 2010 created the CFPB to consolidate consumer financial protection authority previously spread across multiple federal agencies.
A mortgage loan originator receives a gift card from a title company after closing several loans with them. Under RESPA, this arrangement is:
Answer: Prohibited as an unearned fee or kickback under Section 8
RESPA Section 8 prohibits any fee, kickback, or thing of value exchanged for referrals of settlement service business, regardless of dollar amount.
Under the SAFE Act's continuing education requirements, a licensed MLO must complete how many hours of continuing education annually?
Answer: 8 hours
The SAFE Act requires MLOs to complete a minimum of 8 hours of approved continuing education each year to maintain their license.
Which of the following loan features characterizes a 'balloon payment mortgage'?
Answer: A large lump-sum payment is due at the end of the loan term
A balloon payment mortgage requires a large final payment at the end of the term, often after a period of smaller regular payments.
Under the Home Mortgage Disclosure Act (HMDA), what is the primary purpose of collecting and reporting loan data?
Answer: To help identify discriminatory lending patterns and determine whether lenders are serving their communities' housing needs
HMDA data is used by regulators and the public to identify discriminatory lending practices and assess whether financial institutions are meeting community credit needs.
When a loan applicant is a non-citizen permanent resident, how must a lender treat them under ECOA?
Answer: Immigration status may not be used as a basis for denying credit if the applicant is creditworthy
ECOA prohibits discrimination based on national origin, and treating a creditworthy permanent resident differently than a citizen solely due to immigration status would violate this prohibition.
An MLO's pre-licensure education requirement under the SAFE Act includes which mandatory topic?
Answer: Federal law and regulations, ethics, and nontraditional mortgage products
SAFE Act pre-licensure education must include federal mortgage law, ethics (including fraud, consumer protection, and fair lending), and nontraditional mortgage products.