PIN IT

9/28/2020

Lower your payment

Now more than ever you need to be careful with money.
Let's chat to see if I can lower your monthly mortgage payment!
(949) 784- 9699
C G



A few mortgage questions and answers for you to review:

Under RESPA, what may a real estate professional give to a colleague who refers real estate settlement service business?

 

A thing of value

A kickback

A thank you

A fee

RESPA prohibits any person from giving or receiving a fee, kickback, or "a thing of value" for referring business to a settlement service provider, or SSP, such as a mortgage banker, mortgage broker, title company, or title agent. Saying thank you is not considered a thing of value for purposes of the Act.

 

 

Question 2

Which of the following is not necessary in order to show that a section 8 violation has occurred.

 

Showing that payment was made for work not performed

A payment for the referral of services is offered

A payment for the referral of services is accepted.

Proving that applicant ends up being charged more for the service.

There is no direct proof of customer harm necessary to prove a Section 8 violation. "The fact that the transfer of the thing of value does not result in an increase in any charge made by the person giving the thing of value is irrelevant in determining whether the act is prohibited."

 

 

Question 3

The Homeownership Counseling List must be obtained no later than ___ days prior to the time the list is provided to the applicant?

 

30

60

45

10

The list must also be obtained no earlier than thirty (30) days prior to the time the list is provided to the applicant. In other words, it cannot be an old list.

 

 

Question 4

How many counseling agencies must be provided on the Homeownership Counseling List?

 

5

10

20

8

Consistent with §?1024.20(a)(1), lenders comply with the Homeownership Counseling List requirement when they provide a list of ten HUD-approved housing counseling agencies.

 

 

Question 5

RESPA rules do NOT cover this type of transaction:

 

Purchase of a condominium with a Federal Housing Administration mortgage

Purchase of a single-family home with a Veteran's Administration loan

Purchase of a two-flat that the owners plan to live in and rent out the other unit financed with a conventional loan

Purchase of a small warehouse financed with a Small Business Administration loan

RESPA's coverage is limited to transactions involving a federally-related mortgage with a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of one to four families. This includes any loan that is used to prepay or pay off an existing loan secured by the same property. Properties used for business purposes are not covered by RESPA.

 

"Customer" means:

 

Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative, who have a continuing relationship with a financial institution.

Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative. The term "consumer" does not apply to commercial clients, like sole proprietorships.

An individual that has not yet applied for a line of credit

Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative, including business clients

A Consumer is someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative. Customers are a subclass of consumers who have a continuing relationship with a financial institution. It's the nature of the relationship - not how long it lasts - that defines a customer.

 

Question 2

The term "nonpublic personal information" means:

 

Information provided by a consumer to a financial institution

All of the above

Information otherwise obtained by the financial institution

Information resulting from any transaction with the consumer or any service performed for the consumer

The Privacy Rule protects a consumer's "nonpublic personal information" (NPI). NPI is any "personally identifiable financial information" that a financial institution collects about an individual in connection with providing a financial product or service, unless that information is otherwise "publicly available."

 

 

Question 3

The disclosure of the privacy policy must be:

 

Provided to consumers in writing or electronic form

Posted on the wall at the financial institution

Given to consumer or customer upon request

Verbally given to the consumer or customer

Financial institutions must give their customers - and in some cases their consumers - a "clear and conspicuous" written notice describing their privacy policies and practices.

 

 

Question 4

Financial institutions are required to send annual privacy notices to individuals who have paid off their loan

 

False, the notice is not annual

True, but only if the account was paid in full less than 3 yearsYou should have checked this.

True only if it was a portfolio loan.

True, but only if the individual still maintains an open active account with the company.

A former customer "has obtained" a financial product or service from a financial institution but no longer has a continuing relationship with it. For purposes of a company's obligations under the Privacy Rule, a former customer is considered to be a consumer.

 

 

Question 5

The GLB applies to:

 

A retailer that offers credit to consumers by issuing its own credit card

All of the above

A retailer that lets some consumer make payments through an occasional lay-away plan.

A storeowner who runs a tab for customers

The Privacy Rule applies to businesses that are "significantly engaged" in "financial activities" as described in section 4(k) of the Bank Holding Company Act.

 

An oral communication is an electronic record:

 

None of the above

As long as it is recorded.

Never

Always

Oral communications or a recording of an oral communication shall not qualify as an electronic record.

 

Here's a few more questions and explanations:

Question 2

Prior to obtaining their consent, financial institutions must provide the consumer, a clear and conspicuous statement informing the consumer of certain disclosures, which is not required?

 

Informing consumer whether the consent applies only to the particular transaction that triggered the disclosure or to identified categories of records that may be provided during the course of the parties' relationship;

Informing the consumer how the consumer may not request a paper copy of a record and whether a fee will be charged if they do.

Informing the consumer of any right or option to have the record provided or made available on paper or in a non-electronic form, and the right to withdraw consent, including any conditions, consequences, and fees in the event of such withdrawal;

Informing consumer of the procedures the consumer must use to withdraw consent and to update information needed to contact the consumer electronically

Prior to obtaining their consent, financial institutions must provide the consumer, a clear and conspicuous statement informing the consumer of the following: Any right or option to have the record provided or made available on paper or in a non-electronic form, and the right to withdraw consent, including any conditions, consequences, and fees in the event of such withdrawal; Whether the consent applies only to the particular transaction that triggered the disclosure or to identified categories of records that may be provided during the course of the parties' relationship; Describing the procedures the consumer must use to withdraw consent and to update information needed to contact the consumer electronically; and Informing the consumer how the consumer may nonetheless request a paper copy of a record and whether any fee will be charged for that copy.

 

 

Question 3

Prior to consenting to the use of an electronic record, a consumer must:

 

Obtain written consent that consumer has hardware and software required to access electronic documents

Verify that consumer has hardware and software capable of receiving electronic documents.You shouldn't have checked this.

Be provided with a statement of the hardware and software requirements for access to and retention of electronic records.You should have checked this.

All of the above

Prior to consenting to the use of an electronic record, a consumer must be provided with a statement of the hardware and software requirements for access to and retention of electronic records. If the consumer consents electronically, or confirms his or her consent electronically, it must be in a manner that reasonably demonstrates the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent.

 

 

Question 4

Privacy notices can be delivered to customers electronically?

 

Only with consent from the customer, disclosure of certain terms, and a signed waiver

Only with consent from customer and disclosure of certain terms

Only with consent from customer

Any time

Information required by law, to be in writing, can be made available electronically to a consumer only if he or she affirmatively consents to receive the information electronically and the company clearly and conspicuously discloses specified information to the consumer before obtaining his or her consent.

 


9/13/2020

Federal Mortgage laws


 

Under RESPA, what may a real estate professional give to a colleague who refers real estate settlement service business?

 

A thing of value

A kickback

A thank you **

A fee

RESPA prohibits any person from giving or receiving a fee, kickback, or "a thing of value" for referring business to a settlement service provider, or SSP, such as a mortgage banker, mortgage broker, title company, or title agent. Saying thank you is not considered a thing of value for purposes of the Act.



Question 2

Which of the following is not necessary in order to show that a section 8 violation has occurred.

 

Showing that payment was made foe work not performed

A payment for the referral of services is offered

A payment for the referral of services is accepted.

proving that applicant ends up being charged more for the service. ***

There is no direct proof of customer harm necessary to prove a Section 8 violation. "The fact that the transfer of the thing of value does not result in an increase in any charge made by the person giving the thing of value is irrelevant in determining whether the act is prohibited."



Question 3

The Homeownership Counseling List must be obtained no later than ___ days prior to the time the list is provided to the applicant?

 

30  ***

60

45

10

The list must also be obtained no earlier than thirty (30) days prior to the time the list is provided to the applicant. In other words, it cannot be an old list.


Score: 100%

Question 4

How many counseling agencies must be provided on the Home ownership Counseling List?

 

5

10 ***

20

8

Consistent with §?1024.20(a)(1), lenders comply with the Home ownership Counseling List requirement when they provide a list of ten HUD-approved housing counseling agencies.



Question 5

RESPA rules do NOT cover this type of transaction:

 

Purchase of a condominium with a Federal Housing Administration mortgage

Purchase of a single-family home with a Veteran's Administration loan

Purchase of a two-flat that the owners plan to live in and rent out the other unit financed with a conventional loan

Purchase of a small warehouse financed with a Small Business Administration loan ***

RESPA's coverage is limited to transactions involving a federally-related mortgage with a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of one to four families. This includes any loan that is used to prepay or pay off an existing loan secured by the same property. Properties used for business purposes are not covered by RESPA.


"Customer" means:

 

Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative, who have a continuing relationship with a financial institution.You correctly checked this.

Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative. The term "consumer" does not apply to commercial clients, like sole proprietorship.

An indivuadal that has not yet applied for a line of credit

Someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative, including business clients

A Consumer is someone who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that person's legal representative. Customers are a subclass of consumers who have a continuing relationship with a financial institution. It's the nature of the relationship - not how long it lasts - that defines a customer.


Question 2

The term "nonpublic personal information" means:

 

Information provided by a consumer to a financial institution

All of the above. ***

Information otherwise obtained by the financial institution

Information resulting from any transaction with the consumer or any service performed for the consumer

The Privacy Rule protects a consumer's "nonpublic personal information" (NPI). NPI is any "personally identifiable financial information" that a financial institution collects about an individual in connection with providing a financial product or service, unless that information is otherwise "publicly available."



Question 3

The disclosure of the privacy policy must be:

 

Provided to consumers in writing or electronic form ***

Posted on the wall at the financial institution

Given to consumer or customer upon request

Verbally given to the consumer or customer

Financial institutions must give their customers - and in some cases their consumers - a "clear and conspicuous" written notice describing their privacy policies and practices.



Question 4

Financial institutions are required to send annual privacy notices to individuals who have paid off their loan

 

False, the notice is not annual

True, but only if the account was paid in full less than 3 years  no

True, but only if the individual still maintains an open active account with the company no

A former customer "has obtained" a financial product or service from a financial institution but no longer has a continuing relationship with it. For purposes of a company's obligations under the Privacy Rule, a former customer is considered to be a consumer.



Question 5

The GLB applies to:

 

A retailer that offers credit to consumers by issuing its own credit card


All of the above

A retailer that lets some consumer make payments through an occasional lay-away plan.

A store owner who runs a tab for customers

The Privacy Rule applies to businesses that are "significantly engaged" in "financial activities" as described in section 4(k) of the Bank Holding Company Act.


https://carolineg.swmcretail.com/ 

9/03/2020

Housing Counselors in Orange County

The Clouds painting









Affordable Housing Clearing House

https://www.affordable-housing.org/

949-859-9255


Credit.Org

 http://www.homeownership.org/

844-263-9857


Orange County Fair Housing Counsel

 http://www.fairhousingoc.org/

714-569-0823



9/02/2020

NMLS Mortgage Questions

Companies subject to Regulation N are required to keep records of ________ for 24 months.

 

All advertisements

All marketing materials

All written materials

All commercial communications.

Companies subject to Regulation N are required to keep records of all commercial communications regarding any term of any mortgage credit product for 24 months.

Score: 100%

Question 2

Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any _________.

 

Commercial Loan

Mortgage Credit Product.

Consumer Loan

Interest Rate

Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any mortgage credit product. It applies to institutions under the jurisdiction of the FTC.

Score: 100%

Question 3

Which is not a "Mortgage Credit Product"?

 

A loan to purchase a family lake house

A loan to purchase a second home

A loan to purchase husband and wife's flower shop.

A loan to purchase a family home.

A "Mortgage Credit Product" is "any form of credit that is secured by real property or a dwelling and that is offered or extended to a consumer primarily for personal, family, or household purposes. See 12 CFR § 1014.2.

Score: 100%

Question 4

Regulation N was designed to address:

 

Misrepresentations in the advertising of mortgage productsYou correctly checked this.

Permissible claims in advertising

Unearned Kickbacks and Fees relationing to settlements

Telephone solicitations to consumers

Regulation N prohibits any person from making any material misrepresentation in connection with an advertisement for any mortgage credit product.

Score: 100%

Question 5

Which is not a commercial communication:

 

A message in a newspaper

None of the above

A telephone soliciation

A radio announcement

A Commercial Communication is defined as: Any written or oral statement, illustration, or depiction, whether in English or any other language, that is designed to effect a sale or create interest in purchasing goods or services, whether it appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase display, film, slide, audio program transmitted over a telephone system, telemarketing script, on-hold script, upsell script, training materials provided to telemarketing firms, program-length commercial ("infomercial"), the internet, cellular network, or any other medium. Promotional materials and items and Web pages are included in the term commercial communication. See 12 CFR § 1014.2.

Score: 100%

The purpose of this act is to require certain reports or records that have a high degree of usefulness in criminal, tax or regulatory investigations to protect against international terrorism.

 

Patriot Act

SARs

AML

BSA.

The requirement for an AML program has been in place for depository lenders under the Bank Secrecy Act, BSA, and now applies to non-depository lenders as well.

 

Question 2

This Act is also known as the Currency and Foreign Transactions Reporting Act of 1970

 

FinCEN

AML

BSA

CFPB

The Currency and Foreign Transactions Reporting Act of 1970 is also known as The Bank Secrecy Act (BSA).

 

 

AML stands for

 

Approved Money Laundering

Approved Mortgage Lender

Anti-Money Laundering

Anti-Money Labeling

Anti-money laundering training, policies and procedures is now required for non-depository lenders.

 

 

All of the following are components of SARs reporting except

 

SARs are required by non-depository institutions

FinCEN regulates SARs

SARs are reported using FinCEN's BSA E-filing method

Once a SAR is reported, it may be disclosed to the borrower.

All SARs must be kept confidential and may not be disclosed to any parties that may be involved prior to or after reporting.

 

 

The 3 stages of money laundering.

 

Origination, Placement, Fraud

Placement, Layering, Origination

Placement, Layering, Integration

Processing, Layering, Integration

(1) Placement: The introduction of illegally obtained monies or other valuables into financial or nonfinancial institutions. (2) Layering: Separating the proceeds of criminal activity from their source through the use of layers of complex financial transactions. These layers are designed to hamper the audit trail, disguise the origin of funds and provide anonymity. (3) Integration: Placing the laundered proceeds back into the economy in such a way that they re-enter the financial system as apparently legitimate funds. NOTE: These "stages" are not static and overlap broadly. Financial institutions may be misused at any point in the money laundering process. Terrorist financing may not involve the proceeds of criminal conduct, but rather an attempt to conceal the origin or intended use of the funds, which will later be used for criminal purposes.

 

When must a lender provide the consumer with the Loan Estimate?

 

5 days after receipt of loan application

2 days after receipt of loan application

3 days after receipt of loan application

4 days after receipt of loan application

The Loan Estimate must be provided to the consumer within 3 business days of the receipt of the consumer's loan application.

Can a mortgage broker provide the Loan Estimate?

 

Yes, always.

Yes, if the mortgage broker is the main point of contact.

No, never.

Yes, if the mortgage broker receives the consumer's application..

A mortgage broker may provide a Loan Estimate to a consumer if the mortgage broker received the consumer's application.

When can a creditor issue a revised loan estimate

 

Never.

Any time as long as it is 4 business days prior to consummation

When the creditor made a good faith mistake on the original

If the consumer waits more than 10 days before indicating his/her intent to move forward with the loan.

Changed circumstances that occur after the Loan Estimate is provided to the consumer that cause estimated settlement charges to increase more than is permitted under the TILA-RESPA rule § 1026.19(e)(3)(iv)(A); Changed circumstances that occur after the Loan Estimate is provided to the consumer that affect the consumer's eligibility for the terms for which the consumer applied or the value of the security for the loan § 1026.19(e)(3)(iv)(B); Revisions to the credit terms or the settlement are requested by the consumer § 1026.19(e)(3)(iv)(C); The interest rate was not locked when the Loan Estimate was provided, and locking the rate causes the points or lender credits disclosed on the Loan Estimate to change § 1026.19(e)(3)(iv)(D); The consumer indicates an intent to proceed with the transaction more than 10 business days after the Loan Estimate was originally provided § 1026.19(e)(3)(iv)(E); or The loan is a new construction loan, and settlement is delayed by more than 60 calendar days

I made a mistake on the bank's fees on the Loan Estimate, but it is still in good faith because it was:

 

Less than the amount disclosed on the Loan Estimate

Underestimation of the charge

A miscalculation

Technical error

Generally, if the charge paid by or imposed on the consumer exceeds the amount originally disclosed on the Loan Estimate it is not in good faith, regardless of whether the creditor later discovers a technical error, miscalculation, or underestimation of a charge. However, a Loan Estimate is considered to be in good faith if the creditor charges the consumer less than the amount disclosed on the Loan Estimate, without regard to any tolerance limitations.

If the amounts paid by the consumer at closing exceed the amounts disclosed on the Loan Estimate beyond the applicable tolerance threshold, the creditor must refund the excess to the consumer no later than:

 

10 days after closing

90 days after closing

3 days after closing

60 days after closing

If the amounts paid by the consumer at closing exceed the amounts disclosed on the Loan Estimate beyond the applicable tolerance threshold, the creditor must refund the excess to the consumer no later than 60 calendar days after consummation.