Cfpb II: B; Mortgage Servicing Pg 1 - 31

17 Questions | Total Attempts: 37

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Cfpb II: B; Mortgage Servicing Pg 1 - 31

Mortgage Servicing Audit Quiz


Questions and Answers
  • 1. 
    A servicer may service loans on behalf of itself or an affiliate.
    • A. 

      True

    • B. 

      False

  • 2. 
    Servicers must comply with various laws to the extent that the law applies to the particular servicer and its activities: (WHICH IS INCORRECT)
    • A. 

      RESPA

    • B. 

      TILA

    • C. 

      GFE

    • D. 

      EFTA

    • E. 

      HPA

    • F. 

      FCRA

  • 3. 
    The Fair Debt Collection Practices Act (FDCPA) governs foreclosure activities conducted by third-party collection agencies, as well as servicer collection activities if the servicer acquired the loan when it was already in default.
    • A. 

      True

    • B. 

      False

  • 4. 
    The Fair Credit Reporting Act (FCRA) requires servicers that furnish information to consumer reporting agencies to ensure the accuracy of data placed in the consumer reporting system.
    • A. 

      True

    • B. 

      False

  • 5. 
    Which Act requires servicers within the scope of coverage to provide privacy notices and limit information sharing.
    • A. 

      TILA

    • B. 

      ECOA

    • C. 

      GLBA

    • D. 

      FCRA

  • 6. 
    Servicer credits payments toward principal and interest before it applies payments to fees and other charges.
    • A. 

      Sometimes

    • B. 

      All the time

    • C. 

      Never

  • 7. 
    Under the FDCPA, a “debt collector” is defined as any person who regularly collects, or attempts to collect, consumer debts for another person or institution or uses some name other than its own when collecting its own consumer debts, with certain exceptions.
    • A. 

      True

    • B. 

      False

  • 8. 
    An examination of whether a servicer’s loss mitigation program results in adverse impact on the basis of a protected class is not a concern for the servicer.
    • A. 

      True

    • B. 

      False

  • 9. 
    To complete a disparate impact analysis of a servicer’s loss mitigation program, and determine whether a facially neutral policy or practice that has an adverse effect on a protected class meets a legitimate business need that cannot reasonably be achieved by a less discriminatory alternative, the auditor will need to see if there was a cost incurred to the government.
    • A. 

      True

    • B. 

      False

  • 10. 
    Determine whether information provided to consumers about loss mitigation alternatives is....
    • A. 

      Timely, in a 10 pica type, available on the internet

    • B. 

      Clear, prominent and readily understandable

    • C. 

      Presented in person by a licensed individual

    • D. 

      Approved by Fannie Mae

  • 11. 
    If there are consumer complaints or other indications that the servicer is not providing customers with accurate information throughout the process, evaluate the servicer’s practices in the following areas: Which one is the least correct.
    • A. 

      Determine whether the servicer provides adequate methods for consumers to contact it for information about the loss mitigation process, and timely responds to those contacts.

    • B. 

      Determine whether the servicer adequately documents its contacts with consumers regarding loss mitigation. Appropriate documentation of oral contacts includes the dates of communications, names of contact person(s), and a summary of the conversation.

    • C. 

      Determine whether the servicer has procedures in place to ensure all paperwork is collected and tracked in an efficient and reliable manner.

    • D. 

      If the servicer represents to consumers that it is accessible for intake of loss mitigation requests, including if it represents that it has a “single point of contact” system in place, evaluate whether consumers can readily access the servicer’s representatives and obtain complete responses.

    • E. 

      If the servicer denies the customer’s application for loan modification, determine whether it provides the customer with timely notice of rejection as well as the rationale.

  • 12. 
    Determine whether the servicer discloses all fees associated with modifications in a timely, prominent, and understandable manner.
    • A. 

      True

    • B. 

      False

  • 13. 
    Evaluate the servicer’s training programs for employees involved in the loan modification process.
    • A. 

      True

    • B. 

      False

  • 14. 
    Determine whether the servicer discloses any material negative consequences that may occur as a result of a completed loan modification (e.g., decreased credit score, income tax implications if principal reduction is offered, and any increase in monthly payment amount).
    • A. 

      True

    • B. 

      False

  • 15. 
    Determine whether the servicer discloses any rescheduling of payments that may occur under an existing obligation in a clear, prominent, and understandable manner.
    • A. 

      True

    • B. 

      False

  • 16. 
    If the servicer is offering short sales as a loss mitigation tool, determine whether it provides clear, timely disclosures to the customer about the process.
    • A. 

      True

    • B. 

      False

  • 17. 
    Determine whether the servicer has foreclosed on any customers paying on a trial modification agreement, permanent modification agreement, forbearance agreement, or other similar agreement as allowed by CFPB.
    • A. 

      True

    • B. 

      False

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