Which of the following entities has the primary enforcement authority under the Red Flags Rule?
Which of the following facets of a loan could be considered predatory lending or steering?
When a mortgage loan originator (MLO) receives information from a borrower that indicates potential employment fraud, the MLO should:
According to the TILA-RESPA Integrated Disclosure rule (TRID), changed circumstances that may result in a revised Loan Estimate include which of the following situations?
A real estate broker overhears her buyer discussing what she believes to be illegal activities while on a phone conversation. The real estate broker notifies the buyer's mortgage loan originator (MLO) that the borrower may be using illegally acquired funds as down payment for this property. The MLO decides to report some suspicious cash deposit transactions found in the borrower's bank records. Under the Patriot Act, the MLO may discuss the filing of this report with which of the following parties, if any?
A mortgage company is permitted to verify which of the following information?
An individual who is a loan processor or underwriter must maintain a state originator license if they:
Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?
In a federally related mortgage loan transaction, a charge for a settlement service by a person for which no services or nominal services are performed is prohibited:
Which of the following documents must be provided to the borrower when they request a change in loan product?
Which of the following statements defines the term "business day" in a mortgage rescission under the Truth in Lending Act (TILA)?
A borrower works at Company XYZ and was recently approved for a cash-out refinance of her primary residence. The closing is scheduled for Friday. On Monday of closing week, the mortgage loan originator (MLO) sees on the local news that XYZ is closing and the employees have been let go. Which of the following actions, if any, should the MLO take?
A mortgage loan originator (MLO) cannot be approved for licensure if the applicant has:
A mortgage loan originator (MLO) closes a high-cost mortgage for a borrower. Seven months later, the borrower returns to the MLO to apply for a cash-out refinance as the borrower intends to use the cash to purchase a collector car. The MLO determines that the only loan the borrower qualifies for is a high-cost mortgage at a higher interest rate. In which of the following ways should the MLO proceed?
An advertisement only reads: "Looking for low rates on a new mortgage loan? I can get you a $1,100 monthly payment on a $200,000 loan." This statement is a violation of which of the following rules?
When preparing a corrected Closing Disclosure, under which of the following conditions is a three-day waiting period required before a loan consummation?
What is the minimum amount of flood insurance a lender must require on a residential building located in a special flood hazard area?
A woman and her son meet with a mortgage loan originator (MLO) about refinancing the mother's home. During the meeting, the MLO senses that the mother is against the transaction and may be being unfairly coerced into the procedure. In which of the following ways should the MLO proceed?
Loan applications must include all of the following information with respect to mortgage loan originators (MLOs) except the:
Under which of the following programs is a creditor required to provide disclosures to the consumer that fully describe each of the creditor's variable-rate loan programs in which the consumer expresses an interest?
Which of the following activities is an example of redlining in mortgage lending?
Maximum available flood insurance structure coverage for a residential property from the National Flood Insurance Program is what amount?
The SAFE Act mandates that state regulatory authorities must have legal mechanisms to impose civil money penalties for which of the following activities?
A sign that an appraisal report may be overvaluing a property is that the:
Which of the following activities is a function of the Consumer Financial Protection Bureau (CFPB)?
Mortgage loan originators planning to renew their licenses are required by the SAFE Act to complete which of the following education topics as part of their mandatory annual continuing education?
When providing documents to a state regulator regarding a consumer complaint that was submitted to the state regulator, a licensed company should:
How long does Regulation Z of the Truth in Lending Act (TILA) require a mortgage company to retain the Closing Disclosure for a closed mortgage loan?
How many days before consummation must a borrower receive a revised Loan Estimate?
A mortgage loan originator paying compensation to a real estate agent for client referrals is:
According to the Truth in Lending Act (TILA), a dwelling includes which of the following?
A lender is permitted to accept the employment information provided by the borrower on the initial loan application without asking for a letter of explanation in which of the following circumstances?
Which of the following occupancy types are listed on the Uniform Residential Loan Application?
How many business days after issuance is an unlocked Loan Estimate considered expired?
The practice of denying a creditworthy applicant a loan for housing because of the location of the property is sometimes referred to as:
Which of the following responses describes the main purpose of the secondary market?
Which of the following is an acceptable reason for denying a forward mortgage under the Equal Credit Opportunity Act (ECOA)?
A borrower obtains a 2-1 buydown mortgage loan with a 30-year term and a 6% note rate. The borrower's payments will be calculated based upon which of the following?
During the closing the borrower notices that the interest rate increased from 3.250% to 3.875%. The lender must:
Which of the following is a requirement for a mortgage loan originator (MLO) license?
Which of the following scenarios is permissible according to the SAFE Act?
A borrower visits a mortgage loan originator (MLO) for Mortgage ABC to discuss getting a home equity line of credit (HELOC) loan from Bank LMN. The MLO encourages the borrower to apply with Bank XYZ instead because ABC does not provide HELOC loans. When the borrower submits an application directly to XYZ, XYZ pays the MLO $100 from the 1% origination fee that it collected from the borrower. Is this fee permissible?
In a federally related mortgage loan on a principal dwelling, which of the following parties has the right to rescind the transaction?
A customer wants an estimate of closing costs for the purchase of a $300,000 property with a 20% down payment. Although she has provided the other five pieces of information, a loan application, per Regulation X, has not been triggered because she has not yet found a property to purchase. Which of the following responses best describes what should be done, if anything, according to Regulation Z when a written cost estimate is given prior to a Loan Estimate?
Within three business days of receiving an application, which of the following information is a creditor required to provide to an applicant?
Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?
Which of the following federal laws requires mortgage lenders to adopt and follow anti-money laundering (AML) rules and regulations?
What is the maximum civil penalty that is permitted to be imposed for each violation or failure to comply with the SAFE Act?
How many days must a borrower's mortgage loan be delinquent before the mortgage company is permitted to submit the first notice filing in the foreclosure process?
Which of the following loans is subject to the Real Estate Settlement Procedures Act (RESPA)?
Which of the following actions by a mortgage loan originator is prohibited regarding credit secured by a dwelling?
A creditor receives an application with all the required pieces of information but wants to have additional information to determine a borrower's qualifications for a loan. Which of the following actions is most compliant with industry regulations?