#1
Which regulatory body oversees mortgage lenders in the United States?
Federal Reserve
Consumer Financial Protection Bureau (CFPB)
Securities and Exchange Commission (SEC)
Office of the Comptroller of the Currency (OCC)
#2
In the context of mortgages, what does PMI stand for?
Private Mortgage Insurance
Property Maintenance Inspection
Principal and Interest
Property Market Index
#3
What is the role of the Federal Housing Administration (FHA) in the mortgage industry?
To set maximum interest rates for mortgages
To provide mortgage insurance and promote homeownership
To regulate property taxes
To oversee mortgage-backed securities
#4
What does the acronym CFPB stand for in the context of mortgage regulations?
Consumer Finance and Protection Bureau
Credit and Financial Planning Bureau
Consumer Financial Protection Bureau
Central Federal Property Bureau
#5
What is the purpose of the Truth in Lending Act (TILA) in mortgage transactions?
To regulate interest rates on mortgages
To ensure fair lending practices and transparency
To provide tax benefits to homeowners
To determine property appraisal values
#6
Which of the following is a key component of the Home Mortgage Disclosure Act (HMDA)?
Requiring lenders to disclose information about home loan applicants
Setting interest rate limits on mortgages
Regulating property tax assessments
Establishing down payment requirements
#7
What does the term 'amortization' refer to in the context of mortgages?
The process of obtaining a mortgage pre-approval
The gradual repayment of a mortgage loan through scheduled payments
The legal transfer of a mortgage from one lender to another
The assessment of a property's market value
#8
Which federal law prohibits discrimination in housing and mortgage lending based on race, color, religion, sex, or national origin?
Equal Credit Opportunity Act (ECOA)
Real Estate Settlement Procedures Act (RESPA)
Fair Housing Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
#9
What is the purpose of the Escrow Account in a mortgage transaction?
To fund home renovations
To hold funds for property maintenance
To ensure payment of property taxes and insurance
To cover the cost of mortgage insurance
#10
What does the term 'Loan-to-Value (LTV)' ratio represent in mortgage lending?
The borrower's credit score
The ratio of the loan amount to the appraised value of the property
The interest rate on the mortgage loan
The duration of the mortgage term
#11
What is the primary purpose of the Qualified Mortgage (QM) rule?
To limit the size of mortgage loans
To ensure borrowers have the ability to repay their loans
To regulate the number of properties a person can own
To standardize mortgage interest rates
#12
What is the significance of the Consumer Financial Protection Bureau (CFPB) in relation to mortgage regulations?
It enforces fair lending practices and protects consumers in financial transactions, including mortgages
It determines property appraisal values for mortgage loans
It regulates interest rates on mortgages
It oversees property maintenance inspections for mortgage applicants
#13
What is the purpose of the Homeowners Protection Act (HPA)?
To regulate property tax assessments
To protect homeowners from unfair lending practices
To establish down payment requirements
To limit the requirement of private mortgage insurance (PMI)
#14
In the mortgage application process, what is a prepayment penalty?
A fee imposed on borrowers for paying off their mortgage before a specified date
A fee charged by lenders for property maintenance inspections
A penalty for late mortgage payments
A fee for obtaining a mortgage pre-approval
#15
What is the primary purpose of the Dodd-Frank Wall Street Reform and Consumer Protection Act in relation to mortgages?
To abolish the mortgage industry
To regulate property taxes
To ensure fair lending practices and protect consumers
To standardize mortgage interest rates
#16
Which federal law requires lenders to provide borrowers with a Loan Estimate and a Closing Disclosure during the mortgage application process?
Equal Credit Opportunity Act (ECOA)
Truth in Lending Act (TILA)
Fair Housing Act
Real Estate Settlement Procedures Act (RESPA)