Before making, increasing, extending, or renewing a loan secured by improved real estate, which document is generally used to determine whether the building is in an SFHA?
Correct Answer
A) The Standard Flood Hazard Determination Form
Why this is correct: The Standard Flood Hazard Determination Form (SFHDF) is the official document prescribed by regulation for lenders to use in determining and documenting whether a building is located in a Special Flood Hazard Area (SFHA). Its use is required at specific loan action events. Why the other choices are wrong: The Closing Disclosure is for closing cost transparency, not for flood zone determination. The Uniform Residential Loan Application is for collecting borrower and loan details, not for official flood zone assessment. The borrower's tax return provides financial history, not authoritative data on a property's flood zone status. Exam tip: For any action triggering flood review (make, increase, extend, renew), the key document is the Standard Flood Hazard Determination Form.
Why This Is the Correct Answer
Why this is correct: The Standard Flood Hazard Determination Form (SFHDF) is the official document prescribed by regulation for lenders to use in determining and documenting whether a building is located in a Special Flood Hazard Area (SFHA). Its use is required at specific loan action events. Why the other choices are wrong: The Closing Disclosure is for closing cost transparency, not for flood zone determination. The Uniform Residential Loan Application is for collecting borrower and loan details, not for official flood zone assessment. The borrower's tax return provides financial history, not authoritative data on a property's flood zone status. Exam tip: For any action triggering flood review (make, increase, extend, renew), the key document is the Standard Flood Hazard Determination Form.
More Federal Laws Questions
Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?
A team member asks about RESPA Kickbacks and Referrals in an investor-delivery review while trying to confirm the rule-based response. Which response should the loan team use?
During a disclosure desk review, the loan team encounters an RESPA Servicing Transfer issue. Which response should avoid a shortcut that would misapply the rule?
A disciplinary-risk review raises a question about TILA APR and finance-charge rules. Which action should the renewal specialist recommend?
An MLO is reviewing procedures for a case where a compliance analyst asks why covered mortgage application data is collected. What is the proper handling?
A completed application arrives on 4 May. The lender declines it on 20 May and posts the notice on 8 June.
A lender mails the loan estimate on Monday 8 June rather than delivering it in person. Consummation is set for Friday 19 June.
A consumer complaint response raises a question about GLBA privacy requirements. Which action should the state compliance officer recommend?
Before the team acts on a branch training session, a policy analyst must address RESPA Servicing Transfer Notice. Which response is most defensible?
A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?
People Also Study
General Mortgage Knowledge
20% of exam
Mortgage Loan Origination Activities
27% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
Previous Question
Before the loan advances, a training manager must resolve a ECOA and Regulation B issue in a regulator exam preparation. What should happen?
Next Question
During a borrower intake review, the loan team encounters a HOEPA Points and Fees issue. Which response should resolve the issue before the file moves forward?