TILA

Question 1

Truth in Lending act

Answer 1

Started in 1968, many changes since then
Regulation Z

Question 2

Tila applies to who

Answer 2

Individuals who make on a regular business of lending to consumers, and who collect a finance charge, paid on more than four installments for personal family or household purposes 

Question 3

CFPB consumer, federal protection bureau

Answer 3

governs tila

Question 4

PAR rate

Answer 4

Normal retail rate, margin lenders can make money

Question 5

APR

Answer 5

combines all of the costs of getting the loan, along with the annual rate to one number

Question 6

What is not included in the annual percentage rate?

Answer 6

 Fees paid to third-party vendors, such as appraisals, credit checks, tax services, attorneys, recording fees, home inspection, and document prep fees, charged by the closing agent. Escrow fees title insurance premium taxes

Question 7

Apr includes

Answer 7

Interest
Origination fee
Discount points
Processing fees
Underwriting fees
Document prep fees
Private mortgage insurance
FHA upfront costs
Va funding fees
Warehouse fees
Loan application fee
Credit life insurance

Question 8

Disclosures for ARM

Answer 8

1. Educational brochure
2. Disclosure of the specifics
3. Historical perspective for the past 10 years and how it would have effected the borrowers
   4.disclosure of initial and max interest rates

Question 9

72 hour right of rescission

Answer 9

A. Cooling off period. NOT FOR NEW PURCHASES.
B. Refinance transactions or borrowing on equity
C. Co borrowers have the same right to cancel.
D. All borrowers receive two copies of the right to cancel
E. Starts when all buyers have signed the notice of settlement.
F. If they cancel, lender has 20 days to return all funds
G. Failure to disclose the right of recision properly, gives the buyer rights for 3 years from settlement

Question 10

Consumer Advertising trigger terms

Answer 10

1.amount or percentage of any down payment
2. The number of payments or period of repayment.
3. The amount of any payment
4. The amount of any finance charge


Question 11

If the trigger terms used

Answer 11

5 required disclosures
1. amount of percentage
2.terms of repayment over the course of the loan
3. APR

Question 12

Home ownership and equity protection act

Answer 12

1994 disclosure requirements regarding high rate in high fee loans.
“Section 32 mortgages”
Primarily affecting refinancing at home equity installment loans that meet the definition of high rate over 8%
does not apply to cover loans to buy or build a home, Reverse Mortgages, or home equity lines of credit👌

Question 13

1st Lien on a mortgage

Answer 13

APR exceeds by more than 8%, the rates on treasury securities of a comparable term of maturity.

Question 14

Second mortgage

Answer 14

A second mortgage, or the APR, exceeds by more than 10%, the loans on treasury securities of a comparable term of maturity

Question 15

Total fees and points on second mortgages

Answer 15

Total fees and points payable by the consumer exceed 8% of the total loan amount

Question 16

Homeownership, an equity protection act of 1994

Answer 16

Amended in 2008 define by higher-priced mortgage loans
The annual percentage rate that consummation of the transaction will exceed by more than 6 1/2 percentage points, or 8 1/2 percentage points of the dwelling is personal property and the transaction is for less than $50,000