MOL test Study Guide

 

1.    Per Dodd-Frank Act, FHA streamline refinances loan types may exempt a lender from income 1erification on a consumer’s mortgage loan?

2.     A creditor can ask about an applicant’s marital status, when the information is not used to determine whether credit will be extended.

3.    Risk layering was a major concern of the industry regulators when they authored the Interagency guidance for Non-Traditional Mortgages.

4.    Selling a home without the borrower being given the opportunity to cure a defaulted loan is an example of foreclosure abuse.

5.    Verification of deposit is not required to have an “Application” requiring the issuance of a Loan Estimate.

6.    In 1990s decade the predatory lending increase significantly.

7.    Dodd-Frank introduced new appraisal independence regulations that require that on a higher- priced loan the appraiser does physically performs a property visit of the interior of the property.

8.    The Dodd-Frank appraisal independence provisions prohibits lenders from compensate, coerce, bribe or intimidate an appraiser or appraisal firm to influence value.

9.     The Patriot Act broadened the scope of the 1970 Bank Secrecy Act to enhance focus on terrorist financing and money laundering

10. the purpose of HMDA and Regulation C is To ensure the proper distribution and availability of credit to underserved geographic urban areas and neighborhoods.

11.When mortgage loan originators receive the credit information from the credit reporting agency (CRA), they must provide the credit score and key factors of the report.

12.Hard money loan terms best describe a loan that would heighten the need for a borrower to rely on the sale of, or refinancing of a property once amortization begins.

13. A creditor must notify an applicant of its intended action on an IMMEDIATELY UPON DECISION AND NO LONGER THAN 30 days after the application is received.

14.A conventional mortgage that is non-conforming best describes a 2nd mortgage loan.

15.A financial institution required to report data regarding its applications, origination, and purchases of home purchase loans, home improvement loans, and refinancing every twelve months or annually.

16. The CFPB is the Federal agency responsible for issuing and implementing regulations for TILA.

17.HMDA was implemented within the regulation-C pieces of legislation.

18.The Bureau of Consumer Financial Protection will be under the direction of A Director appointed by the President with advice and consent of the Senate.

19. Short form notice is given to consumers who are not customers, in lieu of full initial notice, when the lender has no plans to  share nonpublic personal information about them.

20. Appraisal and fair market value practices areas is not addressed by the agencies' guidance on nontraditional mortgage guidance.

21.A loan processor who is confirming information on a loan application for a VA loan must  obtain a request for COE in addition to the standard verification letters.

22.         HMDA grew out of public concern over credit shortages in certain urban neighborhoods best describes the fundamental reasons for the creation of the Home Mortgage Disclosure Act.

23.         Any non-public, personal information a customer offers to a financial institution (paper, electronic, or otherwise) that the institution or its affiliates handles or maintains. Is considered to be customer information.

24.         While a creditor/ broker does not have to advertise every single plan offered, it is unlawful to conceal more consumer – friendly plan from consumers.

25.         The Closing Disclosure must be retained for 5 year(s) after the date of disclosure.

26.         The best definition of the “average prime offer rate is the average rate on fixed and adjustable loans given to the lowest risk prime borrowers over a given timeframe.

27.         According to TRID, 10% is the maximum (tolerance) percentage that a settlement service selected by the originator can INCREASE.

28.         Educational and state-required materials are not counted as advertisements, unless: they combine educational or state required information with a sales pitch.

29.         HUD’s regulation __x___ forbids a seller from requiring the use of a particular title company as a condition of the sale.

30.          Trigger term require disclosure of additional loan parameters in advertising.

31.         HOEPA  federal law prohibits making a high cost loan to a customer without verifying the customer’s ability to repay the loan?

32.         Reverse Redlining is called when subprime products are pushed upon vulnerable or underserved groups for reasons other than credit quality.

33.         The Gramm-Leach-Bliley Act. (GLB) is also known as the Financial Services Modernization Act.