Term
| What is the name of the regulation associated with RESPA? |
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Definition
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Term
List at least two disclosures required under RESPA and the purpose of
each. |
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Definition
-initial/annual escrow statements, so that loan servicers don't overcharge for escrow payments
-servicing transfer statement, which informs borrowers that their new servicer can't assess late fees for a period of 60 days after the transfer |
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Term
| Name one practice that is prohibited under Section 8 of RESPA. |
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Definition
| giving an incentive for the referral of settlement business. Sham business affiliations. These are pseudo-relationships, whose sole purpose is for the referral of settlement business. Both entities do not have other significant business practices outside of the sham affiliation. |
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Term
| What is the name of the regulation associated with ECOA? |
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Definition
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Term
| List at least three unlawful inquiries under ECOA. |
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Definition
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Term
| List at least two disclosures required under ECOA and the purpose of each. |
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Definition
-notice of action taken:to inform the consumer of the reasoning behind any adverse actions taken.
-notice of incomplete application: to inform the consumer of information needed, give reasonable time for completion, and make known that failure to complete will result in no further consideration of the application. |
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Term
| List at least two disclosures required under TILA. |
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Definition
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Term
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Definition
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Term
| List at least two advertising trigger terms under TILA. |
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Definition
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Term
| What is the purpose of the Homeowner’s Protection Act? |
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Definition
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Term
| Who is required to report according to HMDA? |
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Definition
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Term
List one of the obligations of “users of credit information” under the
FCRA? |
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Definition
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Term
| List the three notices required under the Gramm-Leach-Bliley Act. |
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Definition
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Term
| What does the Safeguards Rule require? |
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Definition
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Term
| List at least two common Red Flag examples. |
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Definition
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Term
Summarize the differences between conventional loans and government
loans. |
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Definition
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Term
Provide a web address for at least one website where you can get up-to-date
information about government loan programs. (hint: this information may
not be in your course – you may need to perform some research outside of
TrainingPro’s content – use a search engine if you need help getting
started.) |
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Definition
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Term
A borrower is unsure whether to go with a faxed rate or adjustable rate
loan. What kind of questions would you ask to help them decide? |
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Definition
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Term
Select two different loan programs/types and summarize the important
points you would need to communicate to a potential borrower. (some
examples: interest-only loans, home equity loans, loans with a balloon
feature, reverse mortgages) |
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Definition
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Term
How would you go about determining whether a loan product/program is
suitable for a particular loan applicant? |
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Definition
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Term
Make a list of some typical documentation you would request from a loan
applicant and/or the verifications you would perform. |
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Definition
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Term
Provide the names of two HUD-approved counselors in your area. (hint: 5
use HUD’s counseling agency search:
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm) |
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Definition
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Term
A first time borrower does not understand the importance of qualifying
ratios. How would you explain the concept to him/her? |
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Definition
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Term
A borrower isn’t sure whether to lock or float. What kind of questions would
you ask to help his/her decide? |
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Definition
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Term
Make a list of at least three items that are important to double check before
submitting a loan application to underwriting. |
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Definition
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Term
List at least two things you would be sure to tell a borrower in preparation
for closing. |
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Definition
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Term
Select a government loan program and summarize its guidelines. (examples:
FHA, VA, USDA) |
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Definition
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Term
A borrower has asked about mortgage insurance premiums and private
mortgage insurance. How would you summarize these requirements for
them? |
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Definition
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Term
Provide a web address for a website containing consumer information
about RESPA. (hint: you may use a search engine or search on HUD’s
website) |
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Definition
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Term
| Describe your ethical obligations pertaining to appraisers. |
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Definition
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Term
Provide web addresses for at least two websites addressing mortgage fraud.
(hint: can be a state/federal agency or an industry website/blog) |
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Definition
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Term
Write a fictional scenario (can be based on something you have witnessed in
real life) describing an ethical challenge you might encounter in a loan
transaction. |
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Definition
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Term
| When is the Servicing Disclosure Statement provided to the borrower? |
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Definition
| Three business days after application |
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Term
| what is the Servicing Disclosure Statement? |
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Definition
| states whether the loan servicing can be sold, assigned, or transferred during the life of the Loan Servicing Transfer Statement |
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Term
| An initial Servicing Transfer Notice must be provided to a borrower, at least _____ days prior to the transfer of servicing of the loan? |
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Definition
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Term
| A lender has an affiliated business arrangement with a third party service provider. Under what circumstances can the lender require a borrower to use the services in a loan transaction? |
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Definition
| If there is no kickback or referral fees and the service provider is an attorney, credit reporting agency or appraiser |
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Term
| A borrower may request a copy of the HUD-1 how many business days prior to settlement? |
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Definition
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Term
| According to fair lending laws, which of the following are you permitted to ask loan applicants? |
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Definition
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Term
| Mr. Jones’ loan application has been denied and you provide him with an Adverse Action Notice as required by ECOA. Which of the following pieces of information would NOT be included on the notice? |
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Definition
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Term
| Which of the following fees in not included on the Good Faith Estimate? |
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Definition
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