#1
Which regulatory body oversees mortgage lenders and servicers in the United States?
Consumer Financial Protection Bureau
ExplanationRegulates mortgage lenders and servicers.
#2
Which of the following is NOT a typical requirement for a mortgage application?
Details of recent vacations
ExplanationNot a standard requirement.
#3
Which type of mortgage loan typically has a fixed interest rate for the entire loan term?
Fixed-rate mortgage
ExplanationInterest rate remains fixed.
#4
What is PMI in the context of mortgage lending?
Private Mortgage Insurance
ExplanationInsurance for lenders against default.
#5
What is a mortgage servicer responsible for?
Collecting mortgage payments from borrowers
ExplanationCollects mortgage payments.
#6
Which type of mortgage loan is insured by the Federal Housing Administration (FHA)?
FHA loan
ExplanationInsured by the FHA.
#7
What is the purpose of the Loan Estimate form in the mortgage application process?
To provide an estimate of closing costs and loan terms to the borrower
ExplanationProvides estimated costs and terms.
#8
What does TRID stand for in the context of mortgage regulations?
TILA-RESPA Integrated Disclosure
ExplanationIntegrated disclosure for mortgages.
#9
What does LTV stand for in the context of mortgage lending?
Loan-to-Value
ExplanationRatio of loan amount to property value.
#10
What is the purpose of the SAFE Act in the mortgage industry?
To prevent mortgage fraud and abuse
ExplanationPrevents mortgage fraud and abuse.
#11
Which federal law prohibits discrimination in lending based on race, color, religion, sex, or national origin?
Equal Credit Opportunity Act (ECOA)
ExplanationProhibits lending discrimination.
#12
What is the purpose of the CFPB's Ability-to-Repay rule?
To ensure that borrowers can afford the mortgages they are offered
ExplanationEnsures borrower affordability.
#13
What is a conforming loan?
A loan that meets the guidelines set by Fannie Mae and Freddie Mac
ExplanationMeets Fannie Mae and Freddie Mac guidelines.
#14
What does HMDA stand for in the context of mortgage lending?
Home Mortgage Disclosure Act
ExplanationRequires mortgage data disclosure.
#15
Under the Dodd-Frank Act, what is the maximum debt-to-income ratio for a 'qualified mortgage'?
45%
ExplanationMaximum DTI ratio for qualified mortgages.
#16
Which federal agency regulates mortgage-backed securities?
Securities and Exchange Commission (SEC)
ExplanationRegulates mortgage-backed securities.
#17
Which federal agency oversees the regulation of mortgage servicers to ensure compliance with consumer protection laws?
Consumer Financial Protection Bureau (CFPB)
ExplanationOversees servicer regulation.