Federal Mortgage-Related Laws

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?

A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?

For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?

Which of the following documents must be provided to trigger the start of the 3-day rescission period?

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 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?

A borrower refinances their primary residence on Tuesday and receives the required TILA disclosures. Assuming no federal holidays, what is the last day they can exercise their right of rescission?

For a HELOC with a 10-year draw period followed by a 15-year repayment period, which statement about APR disclosure is correct?

A borrower's mortgage payment includes principal, interest, taxes, insurance, and a monthly HOA fee collected by the lender. Which components are included in the finance charge calculation?

For a reverse mortgage, which finance charge disclosure requirement is unique compared to traditional forward mortgages?

Saturday and Sunday fall within a borrower's 3-day rescission period. How does this affect the rescission deadline?

A lender fails to provide the Notice of Right to Cancel form but properly delivers all other TILA disclosures for a refinance transaction. How long does the borrower have to exercise rescission rights?

A borrower exercises their right of rescission on a refinance loan by calling the lender on the last day of the rescission period at 8 PM. The lender claims the rescission is invalid because it wasn't in writing. Is the lender correct?

A mortgage broker's newspaper ad states '$200,000 loan amount available.' Which TILA requirement applies?

The right of rescission under TILA applies to a refinance of which type of property?

A borrower wants to waive their right of rescission to expedite their refinance closing. Under what circumstances can this be done?

A lender fails to provide the proper notice of right to rescind at closing. How long does the borrower have to exercise their right of rescission?

A borrower signs loan documents for a cash-out refinance on Tuesday at 2 PM. The lender delivers the required TILA disclosures on Wednesday at 10 AM via overnight mail. When does the rescission period expire?

A lender discovers they provided incorrect TILA disclosures after closing a refinance. What must they do regarding the borrower's rescission rights?

After a borrower exercises their right of rescission on a refinance, the lender must return all money paid by the borrower. Which of the following is NOT required to be returned?

A mortgage advertisement states 'Only $1,200 per month!' without providing additional disclosures. Under TILA, this statement is considered:

A lender's radio advertisement mentions '3.5% interest rate.' What additional information must be disclosed under TILA?

Under RESPA servicing rules, how many days before the effective date must a borrower be notified of a loan servicing transfer?

A borrower refinances their home on Monday and receives proper TILA disclosures. On Wednesday, they decide to rescind but realize they need the loan proceeds to pay off credit cards due Thursday. What happens if they rescind?

Which of the following advertising statements would NOT be considered a trigger term under TILA?

A lender provides electronic TILA disclosures for a refinance transaction through their secure online portal. The borrower logs in and views the disclosures on Tuesday but doesn't print or download them. When does the rescission period begin?

A borrower refinances a rental property they own and occupy as their primary residence 6 months per year. The lender treats it as an investment property and doesn't provide rescission rights. Is this correct?

A mortgage advertisement states 'Payments as low as $950 for qualified borrowers.' What must be disclosed if this triggers additional requirements?

An advertisement for a 5/1 ARM states 'Starting rate 4.5%' and includes all required TILA disclosures. The ad also mentions the rate may adjust. This advertisement:

A lender's radio advertisement states 'Get a $300,000 mortgage with payments as low as $1,200 per month.' What additional disclosure is required under TILA's advertising requirements?

Which of the following would be considered misleading under TILA advertising requirements?

Under TILA, which statement about advertising trigger terms is correct?

An online mortgage advertisement displays 'Refinance today! 3.5% rate available.' Under TILA, what makes this advertisement potentially non-compliant?

A mortgage company's billboard shows 'Get your dream home with our 30-year fixed loans!' This advertisement:

Under HPML rules, an escrow account must be established for the payment of property taxes and insurance. For how long must this escrow account be maintained?

Which of the following loans would be exempt from Higher-Priced Mortgage Loan requirements under TILA?

A mortgage company's billboard displays 'Refinance and save! Payments starting at $999 per month on loans up to $200,000.' What makes this advertisement non-compliant with TILA?

An advertisement states 'Jumbo loans available with interest rates starting at 4.125%.' To be TILA-compliant, what must this rate represent?

A borrower is obtaining a first-lien mortgage with an APR of 6.2% when the APOR is 4.5%. Which HPML requirement applies to this loan?

A first-lien mortgage loan is considered a Higher-Priced Mortgage Loan (HPML) under TILA when the APR exceeds the Average Prime Offer Rate (APOR) by what threshold?

A mortgage broker's radio ad states 'Get approved today! Finance charges starting at just $45,000 over the life of your loan.' What TILA disclosure is triggered by this statement?

A lender is considering a first-lien mortgage loan with an APR of 5.8% when the current APOR is 4.25%. The loan amount is $150,000 and the property value is $200,000. What additional requirement applies due to HPML status?

A borrower applies for an HPML on Monday. The creditor orders an appraisal on Wednesday that is completed the following Tuesday. When must the appraisal be provided to the borrower?

A borrower obtains a subordinate lien HPML on a property where the first lien was originated 18 months ago by the same creditor. The combined loan-to-value ratio is 95%. What appraisal requirement applies?

A lender originates a first-lien mortgage with an APR of 2.8% above the APOR. The borrower has a credit score of 720 and provides full income documentation. Which HPML requirement applies even though the borrower appears well-qualified?

A lender wants to charge a prepayment penalty on a 7-year balloon HPML. The penalty would apply only in years 1-2 and equals 2% of the outstanding balance. Is this permissible?