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Consumer Lending Regs- Prework Flashcards

1
Q

What is an example of a type of loan that’s not considered a consumer loan?

A

Loan secured by real estate

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2
Q

What are some examples of consumer loans?

A

Car loan
Personal/signature loan
Line of credit
Credit card
Share secured loans
Student loans

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3
Q

What is the process of consumer lending?

A

Advertising
Membership
Credit application
Underwriting
Decision and communication
Disclosures
Agreement
Servicing
And collections

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4
Q

What are these acronyms?
TILA
FCRA
UDAAP
CFPB
MLA
SCRA
FDCPA
FRB
NCUA
CUNA
ECOA
UCC
CFR

A

Truth in lending act
Fair credit reporting act
Unfair, deceptive or abusive acts or practices
Consumer financial protection bureau
Military lending act
Service members civil relief act
Fair debt collections practices act
Federal reserve board
National credit Union association
Credit Union national association
Equal Credit opportunity act
Uniform commercial code
Code of federal regulations

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5
Q

Both houses of congress pass a identical bill
President signs into law
Law is assigned to regulatory agency
Proposed rule
Final rule
This is the process of what?

A

A regulation

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6
Q

What is the regulation for truth in lending act?

A

Regulation Z

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7
Q

What does the Equal credit opportunity act prohibit?

A

Discrimination on prohibited bases

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8
Q

What are examples of discrimination based on prohibited bases?

A

Discrimination based on these factors
Race
Sex
Color
Religion
National origin
Marital status
Age
Public assistance

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9
Q

What does the fair credit reporting act has to do with?

A

Anytime you use credit information
Anytime you furnish information to consumer reporting agencies
Requires disclosures be given and you need to be accurate

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10
Q

What is the regulation for equal credit opportunity act?

A

Regulation B

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11
Q

What is the regulation for fair credit reporting act?

A

Regulation v

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12
Q

Military lending act deals with what type of debt?

A

New debt

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13
Q

Who qualifies for military lending act?

A

Active duty military and their dependents

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14
Q

What type of debt does servicemember civil relief act deal with?

A

Existing debt

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15
Q

Who qualifies for the coverage of service member civil relief act?

A

Active duty military and their dependents

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16
Q

What percent is the interest rate cap for service member relief act?

A

6%

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17
Q

Does each state create their own version of UCC?

A

Yes each state has to adopt their own form of the commercial code

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18
Q

UCC article 9 deals with what type of transactions?

A

Secured transactions

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19
Q

What was UCC intended to do?

A

Create uniform laws across states to make commerce as possible

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20
Q

What are some examples of lending transactions not covered by UCC article 9?

A

Real estate

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21
Q

Article 9 deals with how you get a lien on secured goods, true or false?

22
Q

Figure out who has possession of the goods
Consumer goods there is attachment
Title process lien needs to be on the title
Financing statement or UCC 1 for items not titled by the DMV
These things are the process for what?

A

Perfecting a lien/perfecting a security interest

23
Q

True or false it is not a secured loan if we don’t have a secured lien?

24
Q

UCC requires we dispose of collateral in a commercially reasonable fashion true or false?

25
When repossessing a vehicle we should give person an opportunity to redeem it true or false?
True
26
If we sell the collateral we have to give notice? True or false
True
27
If we sell the collateral we have to apply proceeds in accordance with UCC true or false?
True
28
A loan, line of credit, or letter of credit used for commercial, industrial, agricultural or professional purposes are what type of loan?
Commercial loans
29
True or false: all loans made to a business are commercial loans?
False
30
What is the threshold amount for loan to be considered commercial loan?
$50,000
31
Do aggregate loans together to determine if a loan is a commercial loan based on the $50,000.00 threshold?
Yes
32
Loans fully secured by 1-4 family residential property Loans fully secured by shares Loans secured by a vehicle manufactured for household use These are examples of what?
Exceptions to the 50k threshold commercial loan They would not be considered a commercial loan if they are over the 50k threshold
33
Types of commercial loans you’re going to make Maximum amount of assets allowed in commercial loans Aggregate amount of commercial loans to any one borrower or group of associated borrowers These are examples of some of the things that should be included in your what?
Commercial loan policy
34
True or false: the board doesn’t have to review and approve the commercial loan policy annually?
False the board has to review the policy annually and has to approve it
35
What is the % of the credit unions net worth that commercial loans to one borrower can not exceed?
15%
36
True or false aggregate amount of commercial loans to one borrower can be $100,000 + 10% of the credit unions net worth as long as the amount exceeding 15% is fully secured at all times?
True
37
Senior management directly involved in commercial loan underwriting, servicing, and collections and any of their immediate family members, any associated borrowers Compensated directors and their immediate family These are examples of what?
Prohibited commercial loan borrowers
38
True or false you may grant a commercial loan to a compensated director as long as they remove themselves from the discussion and the board approves?
True
39
Written loan policies No prepayment penalties Maximum interest rate =18% Limit on loans and lines of credit to one borrower 10% of credit unions unimpaired shares and surplus Limit on loans and lines of credit to credit Union officials 20k+ pledged shares These are what?
General requirements for consumer lending
40
Loan amount $200-$1000 Interest rate maximum: 28% Term 1-6 months Membership length: minimum of 1 month Application fee: up to 20 bucks Must be fully amortized and underwritten No rollovers This is information for what type of loan?
Payday alternative loans (PALS)
41
Generally what is the maximum loan term for consumer loans?
15 years
42
No maturity date: lines of credit 20 years certain mobile home, RV, home improvement loan second mortgage loan 40 years residential real estate loans secured by 1-4 family property that is or will be the borrowers principle residence These are examples of what?
Exceptions to the loan maturity term
43
Adopt written policy Set cap on amount of all these Establish a time limit to repay Limit amount allowed per member Establish fee and interest rate This is all information that your credit union should disclose about what?
Overdrafts
44
What’s the maximum amount of days a member should have to repay an overdraft
45 days
45
True or false overdrafts are loans?
False
46
What is a participation loan?
When a credit Union purchases loans from Other credit unions Cusos Federally insured financial institutions State or federal government agencies
47
True or false the purchasing credit Union must have a written loan participation policy?
True
48
Underwriting standards Limit on aggregate amount that may be purchased from anyone originating lender Limit on amount by each loan type Limit on aggregate amount with respect to anyone borrower or group of associated borrowers This is information that should be covered in your credit unions _____ policy
Participation loan policy
49
What is the maximum aggregated amount that may be purchased from any one originating lender?
$5,000,000 or 100% of credit unions net worth
50
What is a statutory lien?
Lien on members share and dividends to satisfy outstanding obligations

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