Loan Officer – NMLS Questions and Answers Graded A+

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Loan Officer – NMLS Questions and Answers Graded A+ ECOA - REG B ✔✔Equal Credit Opportunities Act If App for Cedit is Denied based on Appraisal, Borrower has 90 days to request a copy then Lend... er has 30 days to deliver HMDA - REG C ✔✔Home Mortgage Disclosure Act Found in: Section 10 of 10-03 Loan App Government Monitoring Section Eliminates / Identifies Possible Discrimination RESPA - REG X ✔✔Real Estate Settlement Procedures Act TIL/TILA - REG Z ✔✔Truth in Lending Act (2015) Deals with: (Of Consumer Loans) Credit APR Advertising HPA ✔✔Homeowners Protection Act Deals With: PMI - Private Mortgage Insurance - Protects Lender, NOT borrower Conventional Loans NOT MIP NOT Government Loans 20% Down SAFE ✔✔SECURE and Fair Enforcement Act Created by HERA* HERA ✔✔Housing and Economic Recovery Act Law that created the SAFE Act* TILA - REG Z requires lenders... ✔✔To disclose the COMPLETE COST OF CREDIT to consumer loan applicants. Tell the WHOLE STORY of the loan. 3-Day Right of Recission ✔✔ESTABLISHED BY TILA - REG Z - Creditor must return any money collected related to the loan within 20 CALENDAY DAYS - Consumers may rescind the credit transaction UNTIL MIDNIGHT OF THE THIRD BUSINESS DAY. - Borrowers must receive TWO COPIES of a Notice of Right to Rescind. Cooling Off Period ✔✔3 Days to change your mind (TILA) TILA Disclosures must be Kept for... ✔✔2 Years EXCEPTIONS: Loan Estimate - 3 YRS Closing Discolures - 5 YRS TILA Disclosures ✔✔Loan Estimate Disclosure Closing Disclosure CHARM Booklet (Consumer Handbook on Adjustable Rate Mortgages) APR ✔✔Annual Percentage Rate Another Phrase for APR... ✔✔Effective Rate Another Term for Interest Rate... ✔✔Note Rate or Nominal Rate Penalties for violating TILA ✔✔$5,000 per day for SINGLE Violation $25,000 per day for reckless violation $1,000,000 per day for KNOWINGLY violating TRID RESPA ✔✔Real Estate Settlement Procedures Act RESPA Definition ✔✔Passed in 1974 to provide consumer protection for loans on RESIDENTIAL PROPERTIES (1-4 Units) Enacted so consumers can obtain info on costs of closing so that they can shop for settlement services. Limits Escrow deposits RESPA Allows Borrowers... ✔✔... to receive pertinent and timely DISCLOSURES regarding the nature and cost of SETTLEMENT SERVICE cost. RESPA Purpose ✔✔To help consumers become better shoppers for settlement services and to eliminate unnecessary increases in the costs of due to KICKBACKS and places limitation on the use of RESERVE accounts. 4 Important Sections of RESPA ✔✔Section 6 - 8 - 9 - 10. RESPA Section 6 ✔✔Protects homeowners against Mortgage Servicing Abuse. RESPA Section 8 ✔✔Prohibits Kickbacks, Fee-Splitting, and unearned fees. RESPA Section 9 ✔✔States a seller cannot require the use of particular title company. RESPA Section 10 ✔✔Identifies amounts that can be charged to maintain escrow accounts Settlement Services Include ✔✔- Origination of a Federally related Mortgage Loan - Mortgage Broker Services - Services related to the origination , processing, or federal mortgage loan funding - Title services Settlement Services NOT Included ✔✔- Building / Remodeling Contractors - Service and Repair Contractors - Moving Companies - Landscaper - Home Improvement or Design Companies Department of Hosing and Urban Development Acronym ✔✔HUD [Show More]

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