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Mandatory Compliance Training for Loan OriginatorsSession Two in the Quarterly SeriesAugust 18, 2015ANSWER KEY – SEE ITEM IN BOLD is the correct answerMortgage Loan Originators are required to have periodic training. Which statement is false?Training should take into account the particular responsibilities of the lender.Lenders must be trained in all types of loans, including the types of loans they don’t originate in case there is a need to provide coverage during vacations.Lenders are not required to have repeat training if they already have the necessary knowledge and skill.The changes for Integrated Disclosures that become effective on 10/3/15 will require training for all mortgage loan originators to learn the new requirements.A loan originator should have the appropriate responsibility, character, and general fitness. Which of the following statements are FALSE?A sufficient review for financial responsibility considers the existence of current outstanding judgments, tax liens, other government liens, nonpayment of child support, or a pattern of bankruptcies, foreclosures, or delinquent accounts A complete review will include the payment of all debts, including medical debts.A loan originator that submitted false information on a resume to apply for a position would be considered dishonest and not suitable to be approved for hireThere is no single factor that determines suitability for financial responsibility, character, or general fitness, provided that the loan originator organization considers all relevant factors and reasonably determines that, on balance, the individual meets the standards. Training may be delivered by various methods according to 1026.36(f)3(iii). Which method is not one of the recommendations?Using a workstation or internet application.Attending a teleconference.Tail-gating with other mortgage lenders. Attending a government agency training for the types of loans applicable to Federal and State laws and regulations.NMLSR ID numbers are required on certain documents. Which document does NOT require the ID if the application is taken prior to October 3, 2015?The credit application The note or loan contract.The Good Faith Estimate & the HUD-1 statement.The security instrument.Regulation B is the backbone of the Fair Lending laws. Which of the following statements are TRUE? Regulation B only applies to consumer credit, not commercial credit.Regulation B doesn’t restrict the information that can be asked about a spouse.Regulation B covers the lending process from marketing, to underwriting, loan origination terms and conditions; it doesn’t apply to the collection/foreclosure process. Appraisal rules changed January 18, 2014 for first lien applications.The definition of an application will change on August 1, 2015 when the Integrated Disclosure rules become effective. Which item is no longer part of the definition?Property addressSocial Security NumberAny information the lenders requests and deems necessary Estimated value of the propertyThe Integrated Disclosure rules have provisions for any written cost estimate that may be given before the loan estimate (usually for a prequalification/preapproval request). Which item is false? The format must be different than the loan estimate.A disclaimer is required.The disclaimer can be on the second page above the signature line.The disclaimer must be in at least 12-point font.Reg Z was changed effective January 10, 2014 with many requirements for a lender to prove the “ability-to-repay”, also known as ATR. Which statement is FALSE?A consumer loan request to purchase a primary dwelling is covered by the ATR rules.A typical Home Equity Line of Credit is exempt from the ATR rules.There are ten general ability to repay factors including a specific debt to income ratio of no more than 47%A business purpose loan secured by a primary residence is covered by the ATR rules.Both c and d are falseThe coverage for the Integrated Disclosure is different than the current RESPA and TILA provisions. Which statement is FALSE?HELOC’s are exempt from coverageA mobile home loan without land will not be covered.The 25 acre exemption will still apply for rural creditorsConstruction only loans have been added to the coverage Appraisal rules changed under Reg B on January 18, 2014. Which statement is false?Required for both commercial and consumer loans secured by a first lien on a dwelling.A lender must provide a copy of an appraisal or written valuation promptly, or 3 business days before closing.A lender may charge a reasonable fee for the cost of copying the appraisalAn applicant may waive the timing requirement to receive a copy before closingA written notice about the right to receive copies of all written appraisals for applications secured by a first lien must be provided no later than the 3rd business day after receiving the application. ................
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