TILA Flashcards
The Truth-in-Lending Act (TILA) was passed by Congress in 1968 as part of the _____________________.
Consumer Credit Protection Act
TILA is administered by the _________________.
Consumer Financial Protection Bureau (CFPB)
TILA was implemented by the Federal Reserve Board as ______________.
Regulation Z
TILA promotes the informed use of credit by disclosing finance charges in a uniform manner using the ___________________.
Annual Percentage Rate (APR)
TILA was enacted to protect consumers during _______________.
Credit Transactions
TILA deals with _____, _____, and _________ of consumer loans.
credit, APR, and advertising
Regulation Z applies to _______ mortgages of up to ______ and does not include ___________ or other __________ loans.
residential, 4 units, commercial, non-residential
TILA applies to credit transactions payable in more than __ installments.
4
What are the 7 different TILA loan disclosures?
- Loan Estimate (LE)
- Closing Disclosure (CD)
- Consumer Handbook on Adjustable Rate Mortgages (CHARM Booklet)
- When Your Home is on the Line Booklet
- ARM Disclosures
- Notice of the Right to Rescind Disclosures
- Balloon Payment disclosures
The CHARM booklet is required to be provided to the borrower when he/she receives an _______________.
adjustable rate mortgage
The “When Your Home is on the Line” disclosure is required to be provided to the borrower if they receive a _________________ or ___________________.
Home Equity Line of Credit (HELOC) / Home Equity Line of Credit Loan
The “When Your Home is on the Line” disclosure is required to be provided to the borrower if they receive a _______________ or ______________.
Home Equity Line of Credit (HELOC) / Home Equity Line of Credit Loan
The ___________________ Disclosure requires that entities that purchase or acquire mortgage loans notify the borrower and provide the name, address and telephone number of the new owner of the mortgage, within 30 days of acquisition.
Transfer of Ownership
The Transfer of Ownership Disclosure only applies to ________ mortgages.
primary
The Transfer of Ownership Disclosure must be given to the borrower within ______ of another entity acquiring their mortgage loan.
30 days
The Loan Estimate (LE) provides the borrower the estimate of what the _________ will be.
closing cost
The Closing Disclosure (CD) is required to be provided to the borrower __ days prior to loan settlement.
3 days
Another word used for APR is __________.
Effective Rate
The _________________ is the total interest being charged on the loan, expressed as a percentage.
Total Interest Percentage (TIP)
The Mortgage Disclosure Improvement Act (MDIA) states that: Initial disclosures are required within __ business days of receipt of completed application. Earliest consummation is on the ___ business day after disclosures delivered/mailed. If redisclosure is required, consumer must receive corrected disclosure at least ___ business days before loan can be consummated.
3 business days / 7th business day / 3 business days
The Mortgage Disclosure Improvement Act (MDIA) states that: Initial disclosures are required within ________ of receipt of completed application. Earliest consummation is on the _________ after disclosures delivered/mailed. If redisclosure is required, consumer must receive corrected disclosure at least __________ before loan can be consummated.
3 business days / 7th business day / 3 business days
According to TILA – the soonest that a loan can close is __________ after the disclosures have been delivered.
7 business days
TILA is the law that established the ______________ rule. This rule provides a 3-business day cooling-off period for a consumer who uses his primary residence as security for a refinance, home improvement loan, HELOC, or second mortgage loan.
“Right of Rescission”
According to TILA – there is “No Right of Rescission” on a ________, ________ or _________.
purchase / 2nd home / investment property
According to TILA – each borrower must receive _______ of the notice/right to rescind.
2 copies
The rescission period expires at _______ of the ___ day.
midnight / 3rd
If money was collected and a borrower rescinds, escrow has ____ days to return any money collected to the borrower.
20 days
The ______________ is used to determine if loan is a Section 32 (High Cost) or a Section 35 (High Priced) loan.
Average Prime Offer Rate (APOR)
Section 32 loans are also known as _________ loans.
high cost
Section 35 loans are also known as _________ loans.
high priced
