Federal Regulations Flashcards

Question

ECOA Exceptions of Prohibited questions while taking application 3

Answer 1

Immigration status Info for special purpose credit assistance Data collection requirements of ECOA

Answer 2

10,000 individual Class action - lesser of 500,000 or 1% of net worth

Answer 3

5 years 1 year to join DOJ suit

Answer 4

Credit offered to consumers Offer or extension of credit to made regularly Credit includes a finance charge or is repaid in more than 4 installments Credit for personal, family, or household purposes

Answer 5

Business, agricultural, organizational Credit in excess of annually adjusted threshold Public utility credit Credit extended by stock broker Home fuel budget plan Student loan Employment sponsored retirement plans

Answer 6

Lender disburses all of the funds at closing and demands repayment in a period of time. I.e. Mortgages

Answer 7

Borrower and lender anticipate repeat transactions. Limit on amount, but limit can be increased. Payments depend on interest due or amount withdrawn.

Answer 8

Regularly extend consumer credit Repayment in more than 4 installments Receive initial payments on debt that the borrower assumes

Answer 9

Application- submission of customers financial information for the purposes of obtaining credit Business Day- "general"- anyway creditor is open to the public. For LE. CFPB "business day" all except Sunday or Federal Holidays Consummation- the time that a consumer becomes contractually obligated on a credit transaction

Answer 10

Finance Charge- Cost of credit as a $ amount. Includes fees, does not include taxes, HOI, prepaids APR- Cost of credit expressed as a yearly % rate

Answer 11

Excluded fees ``` Title fees Escrow fees Notary fees Appraisal and credit report fees Document prep fees ```

Answer 12

Other ARM Disclosures How interest rate is determined Description of any limits on rate increases How payment is determined Info on negative amortization and prepay penalties

Answer 13

Rate of finance Charge I posed by a creditor in any subdivision of a year

Answer 14

Two copies of the CD for each party with ownership interest

Answer 15

Consumer must then return any funds received to the lender

Answer 16

Criminal Liability- fines up to $5,000 and one year imprisionment Civil Liability- no less than 400 or greater than 4000 fine Class Action- 1,000,000 or 1% of net worth

Answer 17

Thresholds- First-lien - 6.5% or more above average prime Subordinate Lien- 8.5% above average prime $20,579 or more - points and fees exceed 5% total loan amount $20,579 or less - lesser of 8% total loan amount or $1,029

Answer 18

Refinances subject to HOEPA

Answer 19

HOEPA Disclosures ``` Any consumer who is primarily liable Those with ROR rights Due 3 business days before consummation Notice of balloon payment Amount borrowed must be within $100 Notice of inclusion of insurance premiums Variable rate Disclosure ```

Answer 20

HOEPA Exceptions Temporary and bridge loans

Answer 21

HOEPA Prohibited Practices Direct payment to home improvement contractors Loan flipping - repeated refinancing w/n 12 mo Financing points and fees Lending w/o regard to ATR Lending w/o pre loan counseling

Answer 22

HOEPA Thresholds Excerpt prime offer by: 1. 5 points first-lien loans not to exceed conforming limit of 424,100 and 636,150 2. 5 points first- lien Jumbo loans 3. 5 points or more - subordinate lien

Answer 23

HOEPA HPML Escrow Minimum 5 years Can request cancellation at 20% equity if not delinquent or default

Answer 24

HOEPA HPML Small Creditor Exception More than 50% rural or underserved Not to exceed 2,000 loans per year Assets less than 2billion annually