|
Which of the following is an acceptable
entity to telemarket? |
An
organization must truly be a non-profit and cannot conduct business for its
own profit.
According to the Insurance Information
Institute, how many individuals had their identities stolen in 2018?
In 2018, 14.4 million people had their identities stolen. In
January 2019, 24 million mortgage and banking documents, including original
documents, were exposed in a data breach of unsecured servers. Identity
thieves drain accounts, damage credit, and even put medical treatment at
risk. The cost to businesses left with unpaid bills racked up by scam artists
has a significant impact as well.
Under RESPA, what may a real estate
professional give to a colleague who refers real estate settlement service
business?
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.
RESPA allows financial institutions to
provide real estate professionals:
The RESPA provision prohibiting the payment of a referral
fee does not include normal educational and marketing activities that are
not contingent on the referral of business. Since the notepads were not
contingent on the referral of business and are typical marketing materials
for a financial institution, they are not prohibited.
What is the purpose of the Red Flag Rules?
The rules detect
red flags of identity theft for businesses and organizations.
John calls and speaks
with Ben and applies for a loan. Does John have an established business
relationship with the bank?
The second type of established business relationship is
based on a consumer’s inquiry or application regarding a seller’s goods
or services, and exists for three months starting from the date the
consumer makes the inquiry or application. The inquiry must be of a
nature that would create an expectation on the part of the consumer that
a particular company will call them. For example, a call requesting
information on hours or location would not trigger the established
business relationship exemption. However, submitting a loan application
or inquiring about the institution’s products or services would satisfy
as an inquiry or application.
When must a lender
provide the consumer with the Loan Estimate?
The
Loan Estimate must be provided to the consumer within 3 business days of
the receipt of the consumer's loan application.
Which of the following charges are NOT
allowed to be changed from the initial loan estimate?
For certain costs or terms, creditors are permitted to
charge consumers more than the amount disclosed on the Loan Estimate
without any tolerance limitation. Prepaid interest; property insurance
premiums; amounts placed into an escrow, impound, reserve or similar
account are such allowable charges. A loan origination charge cannot be
changed.
What is the
consumer still entitled to if they authorize e-consent?
Regardless of an e-consent authorization the consumer
is entitled to paper copies
The GLBA includes provisions to
protect:
The Gramm-Leach-Bliley Act was enacted on November 12,
1999. The GLB Act seeks to protect consumer financial privacy.
The disclosure of the privacy policy
must be:
Financial institutions must
give their customers - and in some cases their consumers - a
"clear and conspicuous" written notice describing their
privacy policies and practices.
For charges subject to a 10%
aggregate tolerance, what must a lender do when that tolerance is
exceeded?
To the extent the zero tolerance charge
aggregate exceeds the estimate, the difference goes back to the
consumer.
What must the e-consent disclosure
require?
The
notice must inform the consumer of the right to withdraw consent
given
A copy of the appraisal
must be provided to each applicant no later than three business
days after consummation.
A creditor shall provide a copy of each
appraisal or other written valuation promptly upon completion, or
three business days prior to consummation of the transaction in
closed-end credit transaction, whichever is earlier.
"Customer" means;
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.
VA residual calculation
tables are based on which of the following?
Geography
(cost of living) and family size.
A lender
offers a credit card with a limit of up to $750 for applicants age
21-30 and $1,500 for applicants over 30. Is this offer permissible
under ECOA, Regulation B?
Disparate
treatment occurs when a creditor treats an applicant differently
based on a prohibited basis such as age, race, or national
origin.
Privacy notices can be delivered to customers
electronically?
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.
Question 19
Financial
institutions are required to send annual privacy notices to
individuals who have done what?
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.
When is it permissible to ask about age on a
credit application?
In
any system of evaluating creditworthiness, a creditor may
consider the age of an elderly applicant when such age is
used to favor the elderly applicant in extending credit. In
an empirically derived, demonstrably and statistically sound,
credit scoring system, a creditor may use an applicant's age
as a predictive variable, provided that the age of an elderly
applicant is not assigned a negative factor or value. In a
judgmental system of evaluating creditworthiness, a creditor
may consider an applicant's age or whether an applicant's
income derives from any public assistance program only for
the purpose of determining a pertinent element of
creditworthiness.
The term "nonpublic personal
information" means:
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."
The primary qualification for a VA loan to
determine how much money is left over after expenses is
called what?
Residual
income will determine if a Vet can afford a home.
Joe's Trucks services vehicles on credit.
Does Joe's Trucks need to comply with the Red Flags Rule
requirements?
To
determine if your business is a creditor under the Red Flags
Rule, ask these questions: Does my business or organization
regularly: Defer payment for goods and services or bill
customers? Grant or arrange credit? Participate in the
decision to extend, renew, or set the terms of credit? If
you answer: No to all, the Rule does not apply. Yes to one
or more, ask: Does my business or organization regularly and
in the ordinary course of business: Get or use consumer
reports in connection with a credit transaction? Give
information to credit reporting companies in connection with
a credit transaction? Advance funds to — or for — someone
who must repay them, either with funds or pledged property
(excluding incidental expenses in connection with the
services you provide to them)? If you answer: No to all, the
Rule does not apply. Yes to one or more, you are a creditor
covered by the Rule.
When is a financial institution required to
provide customers with the initial privacy notice?
It
must provide an "initial notice" by the time the
customer relationship is established. If this would
substantially delay the customer's transaction, it may
provide the notice within a reasonable time after the
customer relationship is established, but only if the
customer agrees.
A compliant Red Flags Program will have
policies and procedures to identify, detect, and ______ Red
Flags
4-
Step Process to the Red Flags Rule: Identify relevant red
flags, Detect red flags, Respond by preventing and
mitigating identify theft, Update the program
