Financing Flashcards
Which of these Federal laws regulates the advertisement of a lender’s credit terms (rates, payment, etc.)?
Regulation Z.
A broker and the buyers he represents are anxiously awaiting the closing on their new home. The closing is scheduled in 4 days. The buyers inform the broker that they just received revised Loan Estimate and Closing Disclosure forms from the lender, indicating the Annual Percentage Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule, what action should the broker take in this situation?
Confirm with the seller’s broker, the lender and the closing entity that the closing must be delayed to allow for a new seven-day waiting period because of the interest rate revision.
When a home is purchased using an ARM, the monthly loan payment on the mortgage will
vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced.
In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT
more variety of loan programs available.
According to the Truth-in-Lending Act, if any “trigger terms” are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the
prepayment penalties and rebates.
The FHA functions MOST like
an insurance company.
When the sellers are lending part of the purchase price, they may secure the debt either with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust is that
foreclosure is usually simpler and faster.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to
demand immediate payment of the entire note.
