Protecting the Consumer Flashcards
In July 2010, Congress passed and President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act which created the CFPB which stands for
(a) The Consumer Financial Protection Bureau
(b) The Consumer Financial Privacy Board
(c) The Congressional Finance Protection Bureau
(d) The Congressional Financial Privacy Board
(a) The Consumer Financial Protection Bureau
HUD also cautions consumers to be aware of predatory practices of lenders such as
(a) Knowingly lend more money than a borrower can afford to repay
(b) Charging a high interest rate based on the credit history of the borrower
(c) Charging fees for lenders’ additional services
(d) All the above
(a) Knowingly lend more money than a borrower can afford to repay
For refinance loans on primary residences, the borrower must be given the right to rescind (cancel) the loan
(a) Within five days before loan funding and closing
(b) However, the borrower can waive this right
(c) Both a and b
(d) Neither a nor b
(d) Neither a nor b
For refinance loans on primary residences, the borrower must be given the right to rescind (cancel) the loan within three days before loan funding and closing. The borrower cannot waive this right.
The category of higher-priced mortgages includes those mortgages whose APR exceeds the average prime offer rate (average market rate) as follows:
(a) A first trust deed loan with a rate of 1.5% or greater than conventional market rate
(b) A second trust deed loan with a rate of 2.5% or greater than conventional market rate
(c) Both a and b
(d) Neither a nor b
(a) A first trust deed loan with a rate of 1.5% or greater than conventional market rate
Advertisements soliciting financing that prominently display the name of the consumer’s current mortgage lender is
(a) Illegal
(b) Legal
(c) Legal if disclosing it is from a lender not affiliated with the consumer’s current lender
(d) Illegal even if from the consumer’s current lender
(c) Legal if disclosing it is from a lender not affiliated with the consumer’s current lender
RESPA provisions apply to lenders
(a) Making less than $100,000 per year in real estate loans
(b) That are regulated by a government agency such as the Federal Reserve Bank
(c) Lending on apartment buildings with five or more units
(d) Lending on commercial properties
(b) That are regulated by a government agency such as the Federal Reserve Bank
The federal Fair Housing Amendments Act broadened the protected classes to explicitly include
(a) Seniors age 62 and older
(b) Persons who smoke
(c) Families with children and people with physical or mental disabilities
(d) Pets
(c) Families with children and people with physical or mental disabilities
Police Power in property rights includes
(a) Zoning
(b) The right of the police to enter with a search warrant
(c) Both a and b
(d) Neither a nor b
(a) Zoning
The Map Filing Act of 1929, which later evolved into the Subdivision Map Act, served to protect the interests of
(a) Builders and developers
(b) The city financial resources
(c) The unsuspecting public
(d) All the above
(c) The unsuspecting public
The portion of the Subdivided Lands Act that applies to sales of undivided percentage interests
(a) Requires a public report for the sale of four or fewer shares
(b) Requires a public report for the sale of 5 to 10 shares without exception
(c) Requires a public report for only three or more shares
(d) Requires a public report for the sale of 5 to 10 shares but also provides an exemption from it
(d) Requires a public report for the sale of 5 to 10 shares but also provides an exemption from it
Regarding preliminary subdivision public reports and Bureau of Real Estate forms RE 612 and RE 612A
(a) Both constitute binding contracts
(b) Only preliminary subdivision public reports are binding contracts
(c) Only Bureau of Real Estate forms 612 and 612A are binding contracts
(d) None of the above
(d) None of the above
As is the case with preliminary subdivision public reports, Bureau of Real Estate forms RE 612 and RE 612A do not constitute binding contracts.
The federal Truth in Lending Act requires a mortgage lender, before the borrower becomes obligated to receive loan funds, to provide the borrower with
(a) creditor’s identity, amount financed, finance charge (including interest and fees), annual percentage rate, and payment schedule.
(b) only the amount financed, annual percentage rate, and payment schedule.
(c) only the identity of the creditor, amount financed, interest rate, and payment.
(d) only the amount financed, finance charge, annual percentage rate, and payment schedule.
(a) creditor’s identity, amount financed, finance charge (including interest and fees), annual percentage rate, and payment schedule.
Federal truth-in-lending disclosures are provided to the borrower by
(a) a good-faith estimate of settlement costs.
(b) a Truth-in-Lending Disclosure statement.
(c) the title officer.
(d) both a and b.
(d) both a and b.
The borrower must be given a three-day right of rescission, with the lender prohibited from funding and the escrow holder prohibited from closing, for
(a) a refinance loan of the borrower’s primary residence.
(b) all loans.
(c) all refinance loans.
(d) a refinance loan of rental properties only.
(a) a refinance loan of the borrower’s primary residence.
Under RESPA, the lender is required to provide the borrower with
(a) information booklets authored by HUD and a good-faith estimate of closing costs to borrowers before the close of escrow.
(b) only a good-faith estimate of closing costs at closing.
(c) only information booklets authorized by HUD.
(d) none of these.
(a) information booklets authored by HUD and a good-faith estimate of closing costs to borrowers before the close of escrow.
