Net Operating Income In Real Estate! Trivia Questions Quiz

1. A Reg B (ECOA) application is simply a borrower inquiry for credit. The Notice of Incompleteness (NOI) requirements apply even if you do not have the 6 elements of a RESPA application.

True

False

The explanation for the given correct answer is that a Reg B (ECOA) application, which refers to an application under the Equal Credit Opportunity Act, is a borrower's inquiry for credit. The Notice of Incompleteness (NOI) requirements apply to such applications, even if they do not have all six elements of a RESPA (Real Estate Settlement Procedures Act) application. This means that even if the borrower's inquiry does not meet all the requirements for a complete application, the lender is still obligated to comply with the NOI requirements under Reg B.

Explanation

The explanation for the given correct answer is that a Reg B (ECOA) application, which refers to an application under the Equal Credit Opportunity Act, is a borrower's inquiry for credit. The Notice of Incompleteness (NOI) requirements apply to such applications, even if they do not have all six elements of a RESPA (Real Estate Settlement Procedures Act) application. This means that even if the borrower's inquiry does not meet all the requirements for a complete application, the lender is still obligated to comply with the NOI requirements under Reg B.

2. We can not give the borrower more or less time than the typical 30 or 90 days NOI as this could give rise to a fair housing complaint. However, if we have already sent the typical 30 or 90 day NOI and the borrower requests more time, we can send an additional NOI to provide the time requested.

True

False

The statement is true because giving the borrower more or less time than the typical 30 or 90 days Notice of Intent (NOI) could be considered discriminatory and lead to a fair housing complaint. However, if the borrower requests more time after receiving the initial NOI, it is permissible to send an additional NOI to accommodate their request.

Explanation

The statement is true because giving the borrower more or less time than the typical 30 or 90 days Notice of Intent (NOI) could be considered discriminatory and lead to a fair housing complaint. However, if the borrower requests more time after receiving the initial NOI, it is permissible to send an additional NOI to accommodate their request.

3. Who is responsible for issuing a timely NOI?

The Adverse Action Department.

The Loan Originator.

The Processor.

The Underwriter.

LOs are responsible for their own pipeline management, including issuing NOIs in a timely manner.

Explanation

LOs are responsible for their own pipeline management, including issuing NOIs in a timely manner.

4. If a borrower is pre-qualified, we do not have to issue an NOI.

True

False

Only files approved by an underwriter are considered approved. NOIs are designed to get outstanding information that will allow an underwriter to either approve or deny the loan.

Explanation

Only files approved by an underwriter are considered approved. NOIs are designed to get outstanding information that will allow an underwriter to either approve or deny the loan.

5. Which of the following statements are correct?

You must send a NOI before the loan can be denied or withdrawn.

This answer correctly identifies that a Notice of Incompleteness (NOI) must be issued within 30 days of the borrower's ECOA application if they have not been approved, denied, or withdrawn. It also states that the NOI can be sent on the day of the initial conversation with the borrower or anytime within the following 30 days. Furthermore, it explains that the 30-day NOI is for borrowers who need to submit additional information or documents, while the 90-day NOI is for borrowers who do not have a property and need more time to shop.

Explanation

This answer correctly identifies that a Notice of Incompleteness (NOI) must be issued within 30 days of the borrower's ECOA application if they have not been approved, denied, or withdrawn. It also states that the NOI can be sent on the day of the initial conversation with the borrower or anytime within the following 30 days. Furthermore, it explains that the 30-day NOI is for borrowers who need to submit additional information or documents, while the 90-day NOI is for borrowers who do not have a property and need more time to shop.

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