Regulation X, Regulation Z, And Regulation B Testing

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Quizzes Created: 3 | Total Attempts: 1,178
Questions: 16 | Attempts: 399

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Regulation Quizzes & Trivia

This quiz will help FPF management to verify that you have a full understanding of our requirements under RESPA/Regulation X, TIL/Regulation Z, and ECOA/Regulation B.


Questions and Answers
  • 1. 

    Per FPF Policy and Regulation X/Regulation Z, what is the formalized time period for initial disclosure?

    • A.

      3 business days after talking to consumer

    • B.

      7 business days after receiving a completed application

    • C.

      3 business days after the 6 items of a completed application have been received

    • D.

      30 days after the 6 items of a completed application have been received

    Correct Answer
    C. 3 business days after the 6 items of a completed application have been received
    Explanation
    According to FPF Policy and Regulation X/Regulation Z, the formalized time period for initial disclosure is 3 business days after the 6 items of a completed application have been received. This means that once all the necessary documents and information have been submitted by the consumer, the lender has 3 business days to provide the initial disclosure.

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  • 2. 

    Per FPF policy, what constitutes a need to redisclose?  Choose all that apply.

    • A.

      When the loan is locked.

    • B.

      When you change lenders.

    • C.

      When you switch from banking to brokering.

    • D.

      When the loan terms have changed.

    • E.

      When the APR has increased or decreased by .125%

    Correct Answer(s)
    A. When the loan is locked.
    D. When the loan terms have changed.
    E. When the APR has increased or decreased by .125%
    Explanation
    A need to redisclose occurs when the loan is locked, when the loan terms have changed, and when the APR has increased or decreased by .125%. This means that if any of these events happen, the lender is required to provide updated disclosures to the borrower. Changing lenders or switching from banking to brokering does not necessarily trigger a need to redisclose according to FPF policy.

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  • 3. 

    What does COC stand for?

    • A.

      Clear to Close

    • B.

      Change of Circumstance

    • C.

      Cash to Close

    • D.

      Change of Closing

    Correct Answer
    B. Change of Circumstance
    Explanation
    COC stands for Change of Circumstance. This term is commonly used in various industries, including finance and real estate, to refer to a situation where there is a significant alteration or modification in the original conditions or factors that were initially agreed upon. In the context of this question, COC is most likely referring to a Change of Circumstance in a financial or real estate transaction, indicating that there has been a significant change in the circumstances surrounding the deal that may require adjustments or modifications to the terms or conditions of the agreement.

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  • 4. 

    What is a COC (Change of Circumstance)?  Check all that apply.

    • A.

      A change in loan amount

    • B.

      Going from broker to banker

    • C.

      Change of loan type or program

    • D.

      Change of income due to inability to verify income provided or income shows a different amount

    • E.

      Appraised value is different than estimated value that changes the terms of the loan.

    • F.

      Additional service is necessary based on additional title report

    Correct Answer(s)
    A. A change in loan amount
    C. Change of loan type or program
    D. Change of income due to inability to verify income provided or income shows a different amount
    E. Appraised value is different than estimated value that changes the terms of the loan.
    F. Additional service is necessary based on additional title report
    Explanation
    A COC (Change of Circumstance) refers to any change that affects the terms of a loan. This can include a change in the loan amount, loan type or program, income verification, appraised value, or the need for additional services based on a title report. These changes can impact the terms and conditions of the loan and may require adjustments or updates to the loan agreement.

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  • 5. 

    Per FPF policy, when is a COC required to be issued?  Choose all that apply.

    • A.

      When the lock has to be extended

    • B.

      Within 3 days of whenever the consumer has been represented a change in loan terms, verbally or otherwise

    • C.

      When rates drop more than .500%

    • D.

      Whenever a loan is counter offered to the consumer with different terms than originally represented

    Correct Answer(s)
    B. Within 3 days of whenever the consumer has been represented a change in loan terms, verbally or otherwise
    D. Whenever a loan is counter offered to the consumer with different terms than originally represented
    Explanation
    A COC (Change of Circumstance) is required to be issued within 3 days of whenever the consumer has been represented a change in loan terms, verbally or otherwise. Additionally, a COC is required whenever a loan is counter offered to the consumer with different terms than originally represented.

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  • 6. 

    Do the completed application requirements for Reg X/Reg Z apply to Reg B?

    • A.

      Yes, they all have the same application requirements.

    • B.

      No, according to Reg B there are more requirements to constitute a complete application.

    Correct Answer
    B. No, according to Reg B there are more requirements to constitute a complete application.
    Explanation
    According to Regulation B, there are additional requirements that need to be met in order for an application to be considered complete. This means that the completed application requirements for Regulation X and Regulation Z do not apply to Regulation B.

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  • 7. 

    Where can you find the complete application requirements (per FPF policy)

    • A.

      In the FPF Training Center

    • B.

      On the CFPB website

    • C.

      The "Working Together" form found in Encompass

    Correct Answer
    C. The "Working Together" form found in Encompass
    Explanation
    The "Working Together" form found in Encompass is where you can find the complete application requirements per FPF policy.

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  • 8. 

    What does NOI stand for?

    • A.

      Notice of Incompleteness

    • B.

      Notice of Incompetence

    • C.

      Notice of Illegitimacy

    Correct Answer
    A. Notice of Incompleteness
    Explanation
    NOI stands for Notice of Incompleteness. This term is commonly used in various contexts, such as in legal or administrative procedures, to indicate that a document or application is lacking some required information or documentation. The notice serves as a notification to the recipient that they need to provide the missing information in order for the process to proceed.

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  • 9. 

    In what circumstances would you issue an NOI?

    • A.

      When the underwriter issues conditions.

    • B.

      When items needed from the consumer to complete application as defined by the creditor are missing or insufficient.

    • C.

      When the applicant withdraws the loan file.

    Correct Answer
    B. When items needed from the consumer to complete application as defined by the creditor are missing or insufficient.
    Explanation
    An NOI (Notice of Incompleteness) is issued when the items required from the consumer to complete the loan application, as defined by the creditor, are either missing or insufficient. This means that there are certain documents or information that are still needed in order to proceed with the loan application. The underwriter issues an NOI to notify the consumer about the missing or insufficient items and request them to provide the necessary documents or information.

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  • 10. 

    What are the components of the NOI?  Check all that apply

    • A.

      A request for all items remaining to complete an application for credit

    • B.

      2 years paystubs and W-2s or two years tax returns

    • C.

      A stated reasonable period of time for the consumer to deliver the missing or insufficient items

    • D.

      A decline of the terms in which the applicant applied for but an offer to extend credit at new term

    • E.

      A notice that failure to get those items will result in no further obligations of the creditor

    Correct Answer(s)
    A. A request for all items remaining to complete an application for credit
    C. A stated reasonable period of time for the consumer to deliver the missing or insufficient items
    E. A notice that failure to get those items will result in no further obligations of the creditor
    Explanation
    The components of the NOI include a request for all items remaining to complete an application for credit, a stated reasonable period of time for the consumer to deliver the missing or insufficient items, and a notice that failure to get those items will result in no further obligations of the creditor.

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  • 11. 

    What obligations does a creditor have if a consumer fails to deliver the requested items in the stated reasonable period of time.

    • A.

      Creditor must provide the borrower with a new TIL.

    • B.

      Creditor must give the borrower a 45 day extension.

    • C.

      The creditor has no obligation.

    Correct Answer
    C. The creditor has no obligation.
    Explanation
    If a consumer fails to deliver the requested items in the stated reasonable period of time, the creditor is not obligated to provide the borrower with a new TIL or give them a 45 day extension. The creditor is not responsible for the borrower's failure to deliver the requested items, and therefore has no obligation in this situation.

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  • 12. 

    How many calendar days does a creditor have to issue a credit decision after receipt of a complete application

    • A.

      15 Days

    • B.

      30 days

    • C.

      45 days

    • D.

      60 days

    Correct Answer
    B. 30 days
    Explanation
    A creditor has 30 calendar days to issue a credit decision after receiving a complete application. This timeframe allows the creditor sufficient time to review the application, gather any necessary information, and make a decision on whether to approve or deny the credit. It ensures that the applicant receives a timely response and allows them to move forward with their financial plans accordingly.

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  • 13. 

    What 3 types of credit decisions may be issued by the creditor?  Check all that apply

    • A.

      Approved

    • B.

      Withdrawn

    • C.

      Suspended

    • D.

      Declined

    • E.

      Counteroffer

    Correct Answer(s)
    A. Approved
    D. Declined
    E. Counteroffer
    Explanation
    The creditor may issue three types of credit decisions: approved, declined, and counteroffer. If the credit application meets all the necessary criteria and is deemed suitable, the creditor will approve the credit. On the other hand, if the application does not meet the requirements or is deemed unsuitable, the creditor will decline the credit. In some cases, the creditor may offer a counteroffer, suggesting different terms or conditions for the credit.

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  • 14. 

    What does NOAT stand for?

    • A.

      Notice of Appraisal Taxes

    • B.

      Notice of Action Taken

    • C.

      Notice of Appropriate Timeframes

    Correct Answer
    B. Notice of Action Taken
    Explanation
    NOAT stands for Notice of Action Taken. This is a formal notification that is sent to inform individuals or parties about a specific action that has been taken. It could be related to various contexts such as legal matters, financial transactions, or administrative procedures. The purpose of the NOAT is to provide clear and concise information about the action that has been taken, ensuring transparency and accountability.

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  • 15. 

    At what point must an NOAT be issued?  Check all that apply

    • A.

      Upon loan submission

    • B.

      Upon loan denial

    • C.

      Upon loan withdrawal

    • D.

      When the appraisal is received

    • E.

      When the loan interest rate is locked

    • F.

      When issuing a counteroffer

    Correct Answer(s)
    B. Upon loan denial
    C. Upon loan withdrawal
    F. When issuing a counteroffer
    Explanation
    An NOAT (Notice of Adverse Action Taken) must be issued upon loan denial, loan withdrawal, and when issuing a counteroffer. This is to inform the borrower of the adverse action taken on their loan application, whether it is a denial, withdrawal, or a counteroffer. It is a legal requirement to provide this notice to the borrower to ensure transparency and compliance with lending regulations.

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  • 16. 

    The components of a counteroffer consist of a decline of the terms in which the applicant applied for but an offer to extend credit at new terms.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    A counteroffer is a response to an initial offer, where the terms are modified by the party receiving the offer. In this case, the explanation states that the components of a counteroffer include declining the terms initially proposed by the applicant, but also offering to extend credit at new terms. This aligns with the definition of a counteroffer, making the statement true.

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Oct 22, 2012
    Quiz Created by
    FPF_Hammer
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