TILA Reg Z part 2 Flashcards
For Reg Z, what must an ARM be secured by to be considered an ARM? and how long should term be?
principal dwelling and term more than 1 year
when must the CHARM booklet and program disclosure be provided for ARM loans?
at time of application
If a creditor makes fewer than X loans under TRID in a year they are exempt?
5 or fewer mortgage loans
what constitutes application under TRID?
- loan amount
- property address
- name
- SSN
- income
- property value
what is general business days?
day a bank is open and carries substantial amount of there business
what is the mailing rule?
assume post office takes 3 specific days to deliver
How many days does bank have between LE before they can close?
delivered or mailed 7 specific days before consummation
This only applies to first/original LE.
Can a bank waive the 7 day rule before closing?
Yes if customer has bona fide personal financial/health emergency
what is a changed circumstance?
reset baseline
- applicant requests change (variable to fixed)
- floating interest and now locked (revised LE required)
- if intent to proceed not received within 10 a revised LE may be sent
- information that changes assumptions (appraisal value, credit score)
True or False
For HPML, banks must escrow for taxes and insurance for the entire life of loan.
False
For first lien loans, borrower may be given the opportunity to opt out of the escrow after 5 years.
what are the requirement to be a HPML?
- -closed
- -secured by principal dwelling
- -lien position is irrelevant
- -includes home equity, purchase, refinance, etc.
what loans are covered under HOEPA?
- -consumer purpose
- -secured by principal dwelling
- -includes purchase, home equity, refinance and HELOC
what makes a loan a HOEPA loan?
one of the following
- -APR is 6.5% over APOR for first lien and 8.5%
- -loans total points and fees exceed threshold
- -prepayment penalty can be charged more than 36 months out of more than 2%
what are some requirements for HOEPA loans?
- -additional disclosures
- -homeowner counseling required
- -limitations on prepayment penalties and fees
what is a higher risk mortgage?
an HPML that is NOT a qualified mortgage