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.
