Consumer protection laws – key terms Flashcards
Relationship between the cost of borrowing in the total finance, represented as a percentage
Annual percentage rate (APR)
A statement prepared by the lender itemizing loan costs & terms as required for RESPA-related transactions; must be provided to the borrower at least three business days prior to loan consummation
Closing disclosure
An agency funded by the Federal Reserve with rule-making and enforcement authority over a many consumer financial laws, including the Truth in Lending Act and the Real Estate Settlement Procedures Act
Consumer financial protection bureau (CFPB)
A federal law that establishes a code of fair information practices that governs the collection, Maintenance, uses, and dissemination of information about individuals
Consumer privacy act of 1974
Federal law that prohibits discrimination in granting credit to people based on sex, age, marital status, race, color, religion, national origin, or receipt of public assistance
Equal credit opportunity act (ECOA)
A federal law that regulates the collection of consumers’ credit information and access to their credit reports
Fair credit reporting act (FCRA)
A federal law that protects consumers from fraud and abuse in the sale or lease of land. The act is regulated by the US Department of housing and urban development HUD and attempts to prevent marketing schemes that entice consumers to purchase land sight unseen
Interstate land sales full disclosure act
A lender disclosure containing a “good faith estimate” of closing costs, loan terms, and the costs that the borrower must pay for a real estate loan, including the annual percentage rate (APR). The lender must give this to the borrower within three business days of a completed loan application. Required by RESPA and the truth in lending act for all federally related residential transactions
Loan estimate
Federal law dealing with real estate closings that provide specific procedures and guidelines for the disclosure of settlement costs. Implemented by Regulation X, which is under the oversight of the consumer financial protection bureau
Real estate settlement procedures act (RESPA)
A word or phrase that describes a loan, including the down payment, terms, and monthly payment. If an ad uses this term, additional disclosures are required to comply with the truth in lending act
Trigger terms
Federal law that requires disclosure of the terms of credit by a creditor to a prospective borrower. Implemented by regulation Z, which is under the oversight of the consumer financial protection bureau
Truth in lending act (TILA)
