CH 6: FEDERAL REGULATION

Question 1

The requirement that all pertinent information about a property or a loan be provided to enable a consumer to make informed choices is referred to as:

Answer 1

Disclosure

Question 2

Finance charges include:

Answer 2

Interest charges and discount points

Question 3

According to Reg Z, triggers include:

Answer 3

Down payment amount
Interest rate
Number of dollar amount of payments

Question 4

The effective yield on a loan is referred to as:

Answer 4

The annual percentage rate (APR)

Question 5

The act that requires lenders, mortgage brokers, or services of home loans to provide borrowers with the pertinent and timely disclosure of the nature and costs of the real estate settlement process is known as the:

Answer 5

Real Estate Settlement Procedures Act (RESPA)

Question 6

The TRID rule does not apply to:

Answer 6

Home Equity Lines of Credit (HELOCs)
Reverse mortgages
Loans secured by a mobile home

Question 7

How many days prior to consummation can a revised Loan Estimate generally be provided to the borrower?

Answer 7

No later than 3 days prior to consummation

Question 8

The Loan Estimate form must provide:

Answer 8

The name and address of the creditor
The title “Loan Estimate”
A statement of “Save this Loan Estimate to compare with your Closing Disclosure”

Question 9

On the Loan Estimate form, the items shown in the section “Services You Cannot Shop For” must be in alphabetical order and may include:

Answer 9

Appraisals
Credit Reports
Government funding fees

Question 10

The Closing Disclosure Form integrates and replaces the:

Answer 10

HUD-1 form

Final TILA Disclosure Form