Sec4-P28

1. Question

A borrower receives an adverse action notice without reasons for denial. Forty-five days later, the borrower requests the reasons in writing. How must the creditor respond?

A) Provide written reasons within 30 days

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B) Provide reasons only if requested again

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C) Provide reasons only if denial was credit-based

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D) No further action is required

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2. Question

A lender provides adverse action reasons orally and does not mention any right to written confirmation. The borrower later requests written confirmation. What must the lender do?

A) No written confirmation is required

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B) Provide written confirmation within 30 days

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C) Provide written confirmation only if requested twice

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D) Provide written confirmation at closing

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3. Question

A lender delays issuing the ECOA notice until underwriting is complete. The borrower questions whether this complies with disclosure requirements. How should this be evaluated?

A) ECOA notice may be delayed until approval

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B) ECOA notice is only required at closing

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C) ECOA notice must be provided at application

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D) ECOA notice is optional

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4. Question

A borrower applies for an adjustable-rate mortgage and receives the ARM disclosure five days later. How should this be evaluated?

A) Timing is acceptable if borrower agrees

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B) Disclosure may be delayed until closing

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C) Disclosure is only required for fixed loans

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D) Disclosure timing is not compliant

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5. Question

A borrower receives the Home Loan Toolkit four business days after application. The lender claims this is acceptable. How should this be evaluated?

A) The timing violates disclosure rules

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B) The timing is acceptable

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C) Toolkit is only required at closing

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D) Toolkit is optional

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6. Question

A lender provides the Loan Estimate four business days after receiving a complete application. The borrower questions whether this meets timing requirements. How should this be evaluated?

A) Disclosure is timely if closing is delayed

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B) Disclosure timing is not compliant

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C) Disclosure may be delayed with borrower consent

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D) Disclosure is optional

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7. Question

A lender provides a list of homeownership counseling agencies that was generated 60 days earlier. How should this be evaluated?

A) The list is valid for 90 days

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B) The list is valid for 60 days

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C) The list may be reused indefinitely

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D) The list is outdated and not compliant

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8. Question

A borrower receives the appraisal on the day of closing. The lender claims the borrower waived early delivery. How should this be evaluated?

A) The lender violated disclosure rules

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B) Waiver makes delivery optional

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C) Appraisal is only required after closing

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D) Disclosure rules do not apply

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9. Question

A borrower does not receive the Summary of Rights under FCRA or the FACTA credit score disclosure within three business days of application. How should this be evaluated?

A) Disclosures are only required at closing

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B) Disclosure timing was violated

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C) Disclosure is optional

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D) Disclosure is required only upon request

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10. Question

A lender delays providing the GLBA privacy notice until after closing. The borrower questions whether this complies with disclosure rules. How should this be evaluated?

A) Disclosure may be delayed until closing

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B) Disclosure is only required upon request

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C) Disclosure timing was violated

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D) Disclosure is optional

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11. Question

A lender makes a counteroffer that the borrower does not accept. The lender does not send an adverse action notice. How should this be handled?

A) No notice is required

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B) Notice is required within 30 days

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C) Notice is optional

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D) Notice is required within 90 days

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12. Question

A borrower closes on a loan with private mortgage insurance but is not given information regarding PMI cancellation rights. How should this be evaluated?

A) The disclosure was required at closing

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B) Disclosure is only required upon request

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C) Disclosure is optional

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D) Disclosure may be delayed

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13. Question

A borrower purchases a home located in a 100-year flood zone but does not receive a flood hazard notice until after closing. How should this be evaluated?

A) Disclosure may be provided after closing

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B) Disclosure timing was violated

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C) Disclosure is only required if insurance is required

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D) Disclosure is optional

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