TILA

Question 1

When trigger terms are present in an advertisement, what information MUST be provided on that advertisement?

Answer 1

The APR (Annual Percentage Rate)

Question 2

Using the word “fixed” in a mortgage product that has a step-up payment or has a mix of fixed and variable rate is prohibited. True or false?

Answer 2

True

Question 3

When TILA is violated, what 2 agency’s step in and enforce action?

Answer 3

The FTC and the CFPB

Question 4

What is Regulation N and who implemented it?

Answer 4

Reg N is also known as the MAP Rule (Mortgage Act and Practices Rule). The FTC adopted this Rule to prohibit unfair and deceptive acts and practices in the advertising of mortgages

Question 5

What is the HOEPA?

Answer 5

This is the Home Ownership and Equity Protection Act. It was the first federal anti-predatory lending law.

Question 6

The HOEPA prohibits refinancing within the first how many months of the original extension of credit?

Answer 6

12 months unless the refinance is truly in the borrowers best interest.

Question 7

What are the only transactions exempt from the ATR rule?

Answer 7

1. open-end home equity plans
2. reverse mortgages
3. temporary or bridge loans less than 12 months
4. Timeshare plans

Question 8

What are Yield Spread Premiums referred to now?

Answer 8

“borrower credits”