Identify Federal Mortgage Laws - Nationwide Multistate Licensing System NMLS

1. Under TILA-RESPA Integrated Disclosures, what is the name of the disclosure provided shortly after application?

   Loan Estimate (LE). TRID rules require this early estimate to inform borrowers of loan terms and costs transparently.

2. Under FDCPA, what time window is generally permitted for debt collection calls to a consumer?

   Between 8:00 a.m. and 9:00 p.m. local time. The act restricts contact times to avoid inconvenience and harassment, based on the consumer's local time zone.

3. Under FDCPA, what is prohibited regarding false or misleading representations by a collector?

   Any false, deceptive, or misleading representation. The act bans deceitful statements to maintain honesty in collector-consumer interactions.

4. Under FDCPA, what must a debt collector do when the consumer is represented by an attorney?

   Communicate with the attorney, not the consumer. The act mandates redirection of communications to respect the consumer's legal representation.

5. Under FCRA, what must a furnisher do after receiving a dispute from a CRA about reported data?

   Investigate, review, and correct or delete inaccurate data. The act obligates furnishers to maintain report accuracy by addressing consumer disputes promptly.

6. Under FCRA, what is the key requirement before obtaining a consumer report for employment purposes?

   Clear written disclosure and written authorization. The act requires informed consent to protect consumer privacy in employment-related credit checks.

7. Under FCRA, what must a user provide when taking adverse action based on a consumer report?

   Adverse action notice with CRA info and consumer rights. The act mandates notification to inform consumers of reasons and rights after report-based denials.

8. Under ECOA, what is the maximum time to provide a notice of incomplete application and needed items?

   Within 30 days. Regulation B requires prompt alerts to allow applicants to complete submissions efficiently.

9. What federal law primarily governs consumer report accuracy, access, and permissible use?

   FCRA (Fair Credit Reporting Act). This act ensures fair and accurate credit reporting, regulating how consumer information is collected and used.

10. Under ECOA (Reg B), what is the required retention period for application and related records?

    25 months. Regulation B specifies this period to facilitate compliance monitoring and dispute resolution.

11. Under ECOA, what is the maximum time to provide an application decision notice after a completed application?

    Within 30 days. Regulation B enforces timely notifications to ensure fair and efficient credit application processes.

12. What FDCPA notice must be provided within 5 days after the initial communication with a consumer?

    Written validation notice (debt details and dispute rights). The act requires early disclosure of debt details and rights to promote transparency and allow disputes.

13. Under FDCPA, what is prohibited regarding third parties when attempting to locate a consumer?

    Disclosing the debt to third parties (limited location info only). The act safeguards privacy by limiting third-party communications to basic location inquiries only.

14. Under RESPA, what is the maximum amount a lender may require in an escrow cushion?

    Up to $\frac{1}{6}$ of annual escrow disbursements (2 months). The act limits reserves to balance lender protection against excessive consumer funding requirements.

15. Under FCRA, what is required when a lender uses a credit score in connection with a mortgage application?

    Provide credit score disclosure (score, range, key factors, source). The act promotes transparency by requiring disclosure of scoring details used in lending decisions.

16. Under TILA-RESPA Integrated Disclosures, what is the name of the disclosure provided before consummation?

    Closing Disclosure (CD). TRID rules mandate this final disclosure to confirm terms and enable informed closing decisions.

17. Under RESPA, what is the general rule regarding kickbacks and unearned fees for settlement services?

    Kickbacks and unearned fees are prohibited (Section 8). The act aims to prevent conflicts of interest and ensure services are provided without improper incentives.

18. Under FDCPA, what is prohibited regarding harassment or abuse in debt collection?

    Harassment, threats, obscene language, repeated calls. The act prohibits abusive tactics to prevent intimidation and ensure respectful debt collection.

19. Under HMDA, what is the primary purpose of collecting and reporting mortgage application and loan data?

    To monitor lending patterns and support fair lending enforcement. The act requires data reporting to identify potential discrimination and inform public policy.

20. Under FDCPA, what is the rule if a consumer sends a written cease-communication request?

    Collector must stop contacting, except limited notices. The act protects consumer privacy by requiring collectors to honor written requests to cease most communications.

21. Under FCRA, what is a "permissible purpose" for pulling a consumer report in mortgage lending?

    Credit transaction involving the consumer (loan underwriting). The act allows access for legitimate business needs like evaluating creditworthiness in lending.

22. Under ECOA, what is the maximum time to provide an adverse action notice after adverse action is taken?

    Within 30 days. Regulation B mandates quick disclosure of reasons to promote transparency in credit denials.

23. Under FDCPA, what happens when a consumer disputes a debt in writing within 30 days?

    Collection must cease until verification is provided. The act halts collection to ensure debts are verified, protecting consumers from inaccurate claims.

24. What federal law primarily governs third-party debt collector conduct and communications?

    FDCPA (Fair Debt Collection Practices Act). This act establishes rules to prevent abusive, deceptive, and unfair debt collection practices by third parties.

25. Under FDCPA, what is prohibited regarding unfair practices such as adding unauthorized fees?

    Unfair practices, including unauthorized interest, fees, or charges. The act forbids exploitative actions to ensure collections are fair and legally authorized.

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