Regulation B states that a creditor must provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling. For closed-end credit, the appraisal copy must be provided to the applicant...
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Regulation B states that a creditor must provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling. For closed-end credit, the appraisal copy must be provided to the applicant at least ____ business days prior to consummation of the transaction correct answers 3
Regulation B, which implements ECOA, states that a creditor must provide an applicant a copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling. A creditor must provide a copy of each such appraisal or other written valuation promptly upon completion, or three business days prior to consummation of the transaction (for closed-end credit) or account opening (for open-end credit), whichever is earlier.
A borrower elects to buy down the interest rate on his mortgage loan. This appears on the Loan Estimate as a correct answers charge to the borrower (not a yield-spread premium).
A buydown is money out of the borrower's pocket at closing, so it appears on the Loan Estimate as a charge to the borrower.
A higher-priced mortgage loan is one that correct answers uses the average prime offer rate as an
index to compare the annual percentage rate.
As set forth in Section 35 of Regulation Z, a higher-priced mortgage loan is a loan where the annual percentage rate is measured against the current average prime offer rate. A Section 32 loan is a high-cost loan; not higher-priced.
The Mortgage Reform and Anti-Predatory Lending Act sets forth anti-predatory measures for existing high-cost mortgage loans. These measures include all of the following EXCEPT correct answers prohibiting high-cost loans with adjustable rates.
Title XIV of the Dodd-Frank Act is designated as the Mortgage Reform and Anti-Predatory Lending Act. The Act addresses what Congress considers to be abusive or predatory lending practices in the mortgage industry such as setting forth requirements for existing high-cost residential mortgages. The changes to existing high-cost mortgage loans set forth by the Mortgage Reform and Anti-Predatory Lending Act include restricting balloon payments, disallowing prepayment penalties, and banning the practice of encouraging default on an existing
loan when refinancing. The Act did not prohibit high-cost loans with adjustable rates.
When a consumer chooses a provider that was on the Written List of Service Providers for a service, that service is listed as ____ on the Closing Disclosure. correct answers Services Borrower Did Not Shop For.
When a consumer chooses a provider that was on the Written List of Service Providers for a service, that service is listed as Services Borrower Did Not Shop For in the Closing Disclosure Loan Costs table. Which is NOT a trigger used to define a high-cost mortgage loan under the Home Ownership and Equity Protection Act? correct answers excessive prepayment penalty.
Although prepayment penalties with high-cost loans are generally prohibited by HOEPA, the prepayment penalty is not one of the triggers used to identify a high-cost loan.
What entity has supervisory authority over nonbank mortgage originators and servicers, payday lenders, and private student lenders of all sizes? correct answers Consumer Financial Protection Bureau.
The Consumer Financial Protection Bureau (CFPB) has supervisory authority over banks, thrifts,
and credit unions with assets over $10 billion, as well as their affiliates. In addition, the CFPB has supervisory authority over nonbank mortgage originators and servicers, payday lenders, and private student lenders of all sizes. The CFPB also supervises the larger participants of other consumer financial markets as defined by Bureau rules, including consumer reporting, consumer debt collection, student loan servicing, international money transfer, and automobile financing.
A loan on a borrower's primary dwelling where the APR exceeds at least 1.5% of the applicable average prime offer rate for a first lien loan is known as a correct answers higher-priced loan.
This is a higher-priced loan as defined in Section 35 of Regulation Z that implements the Truth in Lending Act.
The submission of a Loan Application Register is due by March 1 of each year as a result of Regulation C that implements what Act? correct answers Home Mortgage Disclosure Act (HMDA).
HMDA, through Regulation C, requires the collection of data for tracking compliance of Fair Housing and ECOA regulations through the completion of a Loan Application Register so that the data can be compiled, assessed, and made available to the public. The Home Mortgage Disclosure Act requires that all data collected the prior year be forwarded to the regulator by March 1.
Financial institutions are _____________ from notifying a customer for whom they have filed a SAR. correct answers prohibited.
The USA Patriot Act Section 351 section expands immunity set forth by the BSA/AML Act from liability for reporting suspicious activities and expands prohibition against notification to individuals of a SAR filing. Financial institutions are prohibited from notifying a customer for whom they have filed a SAR and are given safe harbor, immunizing them from liability that could stem from filing the SAR. The safe harbor serves as a haven from liability not only for the financial institution but also extends to directors, officers, employees, and agents. Should the financial institution be deficient in filing SARs or otherwise reporting the required suspicious conduct, the BSA/AML Act provides whistleblower protection for employees when notifying the
authorities about violations of the Act.
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