Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Loans > Loans > Flashcards

Loans Flashcards

1
Q

What is GAP protection?

A

Pays the deficiency between what is owed and what the insurance covers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

When using GAP protection, how much does the insurance cover?

A

Insurance covers up to the depreciation value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the 3 parts of GAP protection?

A

Deficiency, GAP advantage, and ADR.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is GAP advantage?

A

Replacement vehicle within 90 days can get $1000.00 to put towards the replacement of an auto loan only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is GAP advantage included in?

A

The GAP package. - Can apply to other auto loans if the claim to for an ATV etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What us ADR?

A

Auto Deductible Reimbursement- protection that covers the collision (accident) deductible on the members personal car insurance policy.
- Any vehicle they are titled and insured on up to a $500.00 deductible for the first 2 years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is Debt Protection?

A

Debt cancellation- if an event happens, this loan product can cancel all or part of debt…
1. Life, Disability, involuntary unemployment
2. Disability and involuntary unemployment
3. Life and Disability
4. Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is DPW?

A

Depreciation Protection Waver- secures down payments/ trade in value/ protects payment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the rules of DPW?

A
  • Secures/ locks in the value of the vehicle for the life of the loan
  • Offered only on auto loans if the loan has positive equity or owe less than the vehicle
    -Equal to the difference between vehicles retail value at the time of DPW purchase
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does MBI stand for?

A

Mechanical Breakdown Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is MBI?

A

A specialty type of car insurance coverages repairs not related to routine maintenance, wear and tear or accidents. Pays for transmission failure or engine problems, basically mechanical problems.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is Reg B?

A

Equal credit opportunity act- protects applicants from discrimination in any aspect of a credit transaction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is Reg Z?

A

Truth in Lending Act- consumer protection laws that requires disclosures about the terms and cost of credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is ARP?

A

Annual Percentage Rate- the rate charge on an account. Most important item address by Reg Z

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is MLA?

A

Military Lending Act- applies to active-duty service members, spouses, and certain dependents to limit interest rate changes on many consumer loans. (Not to exceed 36%)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is MAPR?

A

Military Annual Percentage Rate- the cost of consumer credit expressed as an annual rate that may not exceed 36%.

17
Q

What is Risk Based Pricing?

A

Lenders offer different consumers different interest rates or other loan terms based on the estimated risk that consumers will fail to pay back their loans. (Loan rate sheet/ matrix)

18
Q

What is Reg V? - or FCRA?

A

Fair Credit Reporting Act- Promotes the accurate, fairness, and privacy of information in the files of consumer reporting agencies.

19
Q

What is underwriting?

A

The process by which lenders decide whether an applicant in creditworthy and should receive a loan.

20
Q

What are the steps of underwriting?

A
  1. Preapproval
  2. Income/ asset verification
  3. Appraisal
  4. Title search/ insurance
  5. Making a lending decision
21
Q

What is Disposal income?

A

The amount of money left to spend or save after income taxes have been deducted

22
Q

What is DTI?

A

Debt to income ratio- all monthly debt payments divided by your gross monthly income

23
Q

What is gross income?

A

Pay earned before taxes and deductions

24
Q

How to calculate LTV? Loan to value

A

Loan balance divided by the value

25
Q

What are the 5 C’s of lending?

A
  1. Capacity
  2. Capital
  3. Collateral
  4. Conditions
    5.Characters
26
Q

Capacity

A

Ability to repay the loan based on the proposed amount & terms- CAPACITY TO BORROW

27
Q

Capital

A

consists of savings or investment- an additional way to repay the debt

28
Q

Collateral

A

Personal assets pledged by a borrower as security for a loan

29
Q

Conditions

A

Other information that helps determine whether you qualify for credit and the terms received. Basically how you plan to use the money

30
Q

Character

A

Refers to credit history and how debt has been managed

31
Q

Home Equity Loan

A

Let’s you borrow money against that equity built up in your home.

32
Q

HELOC

A

A revolving line of credit that is secured by equity in your home

33
Q

Loan Forms

A
  1. Loan app
  2. Fact act notice
  3. Risk base pricing
  4. Notice to provide insurance
  5. GAP wavier
  6. Debt protection
  7. Loan & security agreement

Loans (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions