Podcast
Questions and Answers
ECOA requires that a lender send a denial notice within:
ECOA requires that a lender send a denial notice within:
- 30 days (correct)
- 60 days
- 120 days
- 90 days
Which of the following statements is not true about the Federal Reserve?
Which of the following statements is not true about the Federal Reserve?
- Supervises the Truth in Lending Act.
- Regulates reserve requirements for all institutions that offer checking accounts.
- Supervises the Federal Housing Authority. (correct)
- Engages in open market operations.
RESPA applies to:
RESPA applies to:
- Second mortgage on a time-share
- Settlement charges on a shopping center
- Primary mortgage on an office building
- First mortgage on a single-family home (correct)
Fannie Mae does all of the following activities except which?
Fannie Mae does all of the following activities except which?
All of the following are primary mortgage market lenders except which?
All of the following are primary mortgage market lenders except which?
Which statement is not true?
Which statement is not true?
The maximum commission amount a mortgage loan broker can charge on a second mortgage loan of 3 years for $18,000 is what?
The maximum commission amount a mortgage loan broker can charge on a second mortgage loan of 3 years for $18,000 is what?
Regulation Z applies to:
Regulation Z applies to:
The amount of debt, time and method of payment, interest rate, and other loan terms are part of the:
The amount of debt, time and method of payment, interest rate, and other loan terms are part of the:
When a lender is evaluating a buyer's ability to repay a loan, the lender looks at all of these items except which one?
When a lender is evaluating a buyer's ability to repay a loan, the lender looks at all of these items except which one?
Who is FNMA?
Who is FNMA?
California law requires that a licensee acting as a loan broker keep the Mortgage Loan Disclosure Statement on file for how long?
California law requires that a licensee acting as a loan broker keep the Mortgage Loan Disclosure Statement on file for how long?
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Study Notes
ECOA Requirements
- ECOA mandates lenders send a denial notice within 30 days of application.
Federal Reserve Oversight
- The Federal Reserve regulates reserve requirements for institutions offering checking accounts.
- It does not supervise the Federal Housing Authority.
- Engages in open market operations and oversees the Truth in Lending Act.
RESPA Applicability
- RESPA applies to first mortgages on single-family homes.
Fannie Mae's Role
- Fannie Mae purchases conventional, FHA, and VA loans.
- It buys pools of mortgages in exchange for mortgage-backed securities.
- It does not administer special assistance programs.
Primary Mortgage Market Lenders
- Primary mortgage market lenders include investment groups, credit unions, and mortgage bankers.
- Holding warehouse agencies are not considered primary mortgage market lenders.
Mortgage Brokers and Bankers
- Mortgage brokers do not lend money; they facilitate loans.
- Mortgage bankers originate loans and are major residential loan sources in California.
- It is incorrect to say mortgage bankers simply bring borrowers and lenders together.
Commission Caps for Brokers
- The maximum commission for a mortgage loan broker on a three-year second mortgage of $18,000 is $2,700.
Regulation Z Provisions
- Regulation Z applies to a $75,000 condominium loan and governs various credit disclosure requirements.
Components of Loan Terms
- Key components of a promissory note include the amount of debt, payment method, interest rate, and other associated loan terms.
Loan Evaluation Factors
- Lenders assess a buyer's ability to repay loans by examining past credit history, present employment status, and liabilities.
- Educational history is not a factor in loan repayment evaluation.
FNMA Identification
- FNMA is an abbreviation for Fannie Mae, a key player in the mortgage market.
Record Keeping for Loan Brokers
- California law requires loan brokers to retain the Mortgage Loan Disclosure Statement for three years.
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