Federal mortgage lending regulations including TILA, RESPA, and the SAFE Act tested on the national mortgage loan originator exam.
41 cards · basic cards · AI-written, checked twice. Edit anything.
- What does SAFE Act stand for?
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Secure and Fair Enforcement for Mortgage Licensing Act- In what year was the SAFE Act enacted?
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2008- What is TILA?
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Truth in Lending Act, a federal law requiring clear disclosure of credit terms and costs to consumers- What is RESPA?
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Real Estate Settlement Procedures Act, a federal law regulating how mortgage loan originators handle closing disclosures and settlement practices- Under the SAFE Act, who must be licensed as a loan originator?
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Any employee or independent contractor who takes residential mortgage loan applications or offers/negotiates loan terms- What are the three main pre-licensing education requirements under the SAFE Act?
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Twenty hours of federal requirements, eight hours of state-specific requirements, and two hours of elective training- How many hours of continuing education must SAFE Act-licensed originators complete annually?
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Eight hours minimum, consisting of three hours federal, two hours state-specific, and three hours elective- What does TILA require lenders to disclose?
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The finance charge, Annual Percentage Rate (APR), payment schedule, and terms of the loan in writing- When must the Loan Estimate be provided under TILA?
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Within three business days of loan application- What is the definition of APR under TILA?
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The Annual Percentage Rate, the yearly cost of credit including interest and certain other charges- How long does a borrower have to rescind a closed-end credit transaction under TILA?
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Three business days from the date of the transaction or when disclosure is delivered, whichever is later- What is the primary purpose of RESPA?
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To ensure that borrowers receive accurate, timely information about settlement costs and to eliminate kickbacks in real estate transactions- Does RESPA allow steering borrowers to a particular title insurance company?
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No, RESPA prohibits steering borrowers to affiliated title companies- What is an affiliated business arrangement (ABA) under RESPA?
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An arrangement in which a settlement service provider refers business to an affiliated entity in which it has a financial interest- Under RESPA, are kickbacks and referral fees permitted?
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No, RESPA prohibits kickbacks and unearned referral fees for referrals of settlement services
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