Ch 9 Summaries Flashcards
____ is income that is reasonably expected to continue for some time, such as three years.
Stable monthly income
As a general rule, when considering acceptable income, the applicant should have at least ___ years of continuous employment in the same field
2
Secondary sources of income may include commissions or bonuses, alimony or child support, public assistance, investment income, and rental income, if ___ and __
1) the income has been received reliably
2) can be expected to continue
Unacceptable income:
1)
2)
3)
1) Unemployment benefits,
2) income from a temporary job, and
3) income from persons who will not be co-signing the loan
The Truth in Lending Act is a federal law that makes it easier for consumers to ____ and ____
compare loans;
shop around for the best possible rates.
Within ___ business days of receiving a loan application, a lender must give the loan applicant a loan estimate form with all finance charges.
3
The most important disclosure under the Truth in Lending Act is of the loan’s ____.
Annual Percentage Rate (APR)
APR = ____
Annual Percentage Rate
The APR expresses the relationship of the total ____ to the total ____ as a percentage.
Finance charges;
Loan amount
___ = A lender can guarantee the interest rate on a loan, protecting the borrower if interest rates rise during the period between the loan application and closing.
Lock-ins
This law requires an agent who negotiates a loan to make various disclosures to the borrower, including the principal amount, loan costs, and the balance that will be paid to the borrower.
Mortgage loan broker law
California’s ____ law applies to purchase loans and home equity loans secured by a principal residence.
Predatory lending
CA’s predatory lending law prohibits various ____ practices.
Predatory lending
