TILA - Reg Z

Question 1

What is APR?

Answer 1

Annual Percentage Rate
APR tells a borrower the TOTAL cost of financing a loan in PERCENTAGE terms, as a relationship of the total finance charges to the total amount financed

Question 2

Right of Rescission applies to which transactions?

Answer 2

Home Equity loans
Home improvement loans
Refinances
Home Equity lines of credit

Question 3

Which transactions do NOT apply under the Right of Rescission?

Answer 3

Purchase loans
Construction loans
Commercial loans
Loans of vacation or second homes
Transactions where a state agency is a creditor

Question 4

How long or when can a consumer exercise their Right to Rescind?

Answer 4

Until midnight of the third business day following loan consummation, delivery of rescission notice, delivery of all material disclosures, WHICHEVER OCCURS LAST

Question 5

If a consumer exercises their right to rescind, when must the creditor return money to consumer?

Answer 5

Creditor must return all money collected related to the loan within 20 calendar days. The consumer has liability for the loan, including finance charges.

Question 6

If the amounts paid by the consumer at closing exceed the tolerance thresholds, a creditor must refund the excess to the consumer no later than___

Answer 6

Within 60 Calendar days after consummation

Question 7

A “complete Application” contains what?

Answer 7

Borrower's name
SSN
gross monthly income
subject's property address
loan amount
An estimate value of the property

Question 8

Within how many days does a creditor need to return the money if consumer exercises their right to rescind?

Answer 8

The creditor must return any money collected related to the loan within 20 calendar days.