A mortgage lender discovers that one of their loan officers has been receiving $100 payments from a title company for each referral. What should the lender do?
Correct Answer
A) Report the violation to CFPB and terminate the loan officer
RESPA Section 8 violations must be addressed immediately. The lender should report the violation to appropriate authorities and terminate the loan officer to prevent further violations and demonstrate compliance commitment.
Why This Is the Correct Answer
RESPA Section 8 violations must be addressed immediately. The lender should report the violation to appropriate authorities and terminate the loan officer to prevent further violations and demonstrate compliance commitment.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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Previous Question
A borrower submits a complete mortgage application on Tuesday at 2:00 PM. When is the latest the lender can deliver the Loan Estimate without violating TRID timing requirements?
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A loan servicer fails to respond to a borrower's qualified written request within the required timeframe. What is the maximum penalty the servicer may face per violation?