Federal Mortgage-Related Laws

A mortgage file is paused during a lock-desk handoff because of FCRA Adverse Action Notices. Which answer should identify which rule controls the file?

Before the team acts on a production meeting, a training manager must address SCRA Interest Rate Cap. Which response is most defensible?

Before the team acts on a production meeting, the MLO must address FCRA Adverse Action Notice. 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 mortgage team asks a quality-control reviewer about TRID Loan Estimate timing during a record-retention audit. Which answer should guide the file?

A mortgage team asks a branch supervisor about TILA APR and finance-charge rules during a renewal checklist. Which answer should guide the file?

A mortgage file is paused during a risk-control review because of TILA QM DTI Calculation. Which answer should choose the most defensible file action?

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 consumer complaint response raises a question about TILA advertising. Which action should the audit analyst recommend?

Before the team acts on a branch training session, an audit analyst must address RESPA Kickbacks and Referrals. Which response is most defensible?

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 record-retention audit raises a question about RESPA and Regulation X. Which action should the audit analyst recommend?

A policy analyst compares the file facts with TILA Right of Rescission during a licensing team review. Which conclusion is accurate?

A compliance exception review raises an ECOA Prohibited Basis question for a policy analyst. What answer should guide the file?

A training manager is resolving RESPA Referral Fees during an internal audit sample. Which action best fits the rule?

During an advertising approval, a sponsorship reviewer identifies an issue involving RESPA and Regulation X. Which response is most compliant?

A compliance exception review raises a TILA Tolerance Violations question for a training manager. What answer should guide the file?

A quality-control reviewer is resolving FCRA Permissible Purposes during an internal audit sample. Which action best fits the rule?

A disclosure specialist compares the file facts with RESPA Servicing Requirements during a borrower follow-up call. Which conclusion is accurate?

A servicer determines that flood insurance on a designated loan has expired and sends the borrower the required notice. The borrower does not obtain adequate coverage within 45 days. What must the servicer do?

A current flood determination shows that the collateral building is outside an SFHA. A new FEMA map later places it inside an SFHA during the loan term. What should the lender or servicer do?

An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?

A bank will make a loan secured by a building located in an SFHA. What should the bank do regarding the Notice of Special Flood Hazards?

During a disclosure desk review, a processor encounters a TRID Loan Estimate Timing issue. Which response should select the answer that fits the governing requirement?

A federally regulated lender makes a loan secured by an office building in an SFHA located in a participating NFIP community. Which statement is correct?

A condominium unit securing a designated loan is covered by a master flood policy, but the allocated coverage is below the amount required for the unit. What should the lender do?

In a file escalation meeting, a disclosure specialist sees facts tied to TILA Closing Disclosure. What should the file reflect?

A flood determination identifies two structures on the collateral: a residence and a detached storage shed that does not serve as a residence. Which statement is most accurate?

A team member asks about TRID Changed Circumstances in a consumer complaint triage while trying to decide how the file should be documented. Which response should the supervisor use?

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?

A loan is secured by a mobile home located in an SFHA in a participating NFIP community. Can the federal mandatory purchase requirement apply?

A loan is secured only by vacant land in an SFHA; no building or mobile home is located on the collateral and none will be placed there. Does the federal mandatory purchase rule apply solely because the land is in an SFHA?

A bank renews an existing commercial loan secured by a warehouse. Why must the bank review the flood determination at renewal?

A borrower acknowledges receipt of the special flood hazard notice electronically. When can electronic delivery satisfy the notice requirement?

A designated loan has an outstanding principal balance of $180,000. The maximum NFIP coverage available for the building type is $250,000, and the building's insurable value is sufficient. What is the minimum required coverage under the lesser-of calculation?

Which federal entity identifies and maps special flood hazard areas for purposes of the National Flood Insurance Program?

Ten days after sending a force-placement notice, a servicer buys coverage because the borrower has not yet responded. Which statement is most accurate?

A designated loan's required flood policy is cancelled during the loan term. What is the lender or servicer's first regulatory step after determining coverage is absent or insufficient?

A borrower receives the special flood hazard notice at the closing table with no earlier delivery. What is the principal compliance concern?

A borrower obtains adequate flood insurance 30 days after receiving a force-placement notice. What should the servicer do?

A quality-control reviewer flags a case because a borrower sends a written request for information to the servicer-designated address. What correction is appropriate?

The lender properly provides the Notice of Special Flood Hazards to the borrower. Who else must generally receive the notice when there is a loan servicer?

An operations lead is resolving HMDA Reporting Requirements during a quality-control sample. Which action best fits the rule?

An MLO is reviewing procedures for a case where a borrower sends a written request for information to the servicer-designated address. What is the proper handling?

During a company policy update, a policy analyst identifies an issue involving ATR/QM repayment-ability rules. Which response is most compliant?

An annual compliance meeting raises a question about FCRA credit-reporting rules. Which action should the operations lead recommend?

Before the loan advances, a quality-control reviewer must resolve a ATR/QM repayment-ability rules issue in a supervisory file review. What should happen?