Consumer Protection and Fair Housing Laws Flashcards
Which laws require the lender to inform the borrower of the annual percentage rate beforesigning the loan documents?
a. Fair Credit Reporting Act
b. Equal Credit Opportunity Act
c. Truth in Lending Act
d. Real Estate Settlement Procedures Act
C.
In originating a loan covered by RESPA, the lender is req’d to:
a. make a disclosure of all charges no later than 12 days in advance of the date of settlement.
b. provide a statement of settlement charges and fees only at the time of the settlement
c. provide the borrower w/ a loan estimate within three business days after the loan app is received
d. advise borrowers that they have the right in all cases to rescind the loan for at least three days after the loan is made
C.
a. Which statement in an advertisement would trigger full disclosure of terms under Regulation Z?
a. “3-bedroom, split-level has assumable loan”
b. “ranch house on 1 acre, seller financing available”
c. “4 BR, 2-bath house with $600 monthly payments at 8% interest
d. “estate house,5000 sq. feet with good terms available
C.
Give examples of trigger terms used in advertising:
- Down payment
- Number of payments
- amount of any payments
- Period of payments (monthly, quarterly etc.)
- Amount of any finance charge
Regulation Z requires full disclosure of the:
a. cost of obtaining credit by expressing interest and costs as an annual percentage rate.
b. cost of making repairs caused by depreciation.
c. three day right to rescind for a mortgage used to acquire a home
d. maintenance and repairs
A.
Regulation Z requires disclosure of all of the following except:
a. annual percentage rate
b. title insurance fees
c. monthly payments
d. total interest payments
B.
The provisions of RESPA apply to all of the following property types except:
a. vacant single family residence
b. duplex
c. condo unit
d. owner-occupied 5-plex
D.
Within three days of the mortgage loan app, RESPA requires which of the folllowing disclosed?
a. an estimate of referral fees
b. name of the title insurance company
c. loan estimate
d. a statement of the annual percentage rate
C.
CFPB?
Consumer Financial Protection Bureau
TILA?
Truth in Lending Act:
Regulation Z
* applies to owner occupied 1- 4 family units
* loans made by institutional lenders only
* TILA advertising rules (TRIGGER TERMS)
* required disclosures: APR and all Finance charges in $ and cents
RESPA?
Real Estate Settlement Procedures Act:
Regulation X
- applies to 1 - 4 family properties financed with a federally related mortgage loan
- requires delivery of the TRID loan estimate to the borrower within 3 business day of completed loan app
- requires delivery of “your home loan tool kit” to the borrower
- requires delivery of the TRID Closing Disclosure at least 3 days prior to closing
- ” disclosure of AfBA’s (affidavit of affiliated business arragements
Regulation Z requires:
a. disclosure of all affiliated business arrangements
b. a loan to be guaranteed by the VA or FHA
c. expressing the costs of financing both dollars and as annual percentage
d. adherence to the ECOA
C.
RESPA applies:
a. when seller financing is used
b. any time financing is used
c. when the financing comes from a federally related loan
d. upon assumption of an existing loan
C.
The primary purpose of RESPA is to:
a. provide full disclosure of costs in a transaction
b. restrict title comany charges
c reduce the control of mortgage companies
d. disclose financing charges
A.
A mortgage broker is processing a loan for a woman. If she is denied the loan bc she is an unmarried woman, the mortgage broker is violating:
a. FCRA
b. ECOA
c. Regulation Z
d. RESPA
B.
