TILA Reg Z part 3 Flashcards

1
Q

What is a higher risk mortgage?

A

HPML that is not a qualified mortgage

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2
Q

what are the requirements for a higher risk mortgage?

A
  • -appraisal is required (must include a physical inspection of interior of the property)
  • -transactions less than $27,200 are exempt
  • -disclosure must be delivered or mailed no later than 3 days after application
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3
Q

True or False

An appraisal waiver can be granted for higher risk mortgage.

A

False

It cannot be waived. Copy of any written appraisal performed must be provided no later than 3 business days prior to close.

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4
Q

when is a 2nd appraisal needed?

A

flipping transaction (2nd appraisal at no cost to applicant)

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5
Q

How can a loan originators compensation vary based on?

A

amount of loan

NOT rate or points

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6
Q

what transactions are considered private education loans?

A
  • -any funds post secondary education expense

- -not secured by real estate

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7
Q

what are the requirements for a private education loan?

A
  • -terms guaranteed for 30 days
  • -3 disclosures
  • —-at application
  • —–upon approval
  • —-at closing with right to cancel language
  • -borrower certification form from college
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8
Q

what loans are NOT subject to recision?

A
  • home purchases

- refinance of same loan at same bank(no new money

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9
Q

Who has right to rescind?

A

Individual must have both:

  • -principal dwelling
  • -ownership interest
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10
Q

when does recision start running?

A

After all borrowers have received:

  • -2 copies of recision notice
  • -final CD
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11
Q

How many days does borrower have to rescind?

A

3 specific days

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12
Q

If recision requirements are not met, how long does customer have to rescind?

A

3 years

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13
Q

Can recision period be wavied?

A

yes

For a bona fide personal financial emergency

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14
Q

True or False

A bank cannot delay funding past 3rd day to ensure not rescinded.

A

False

They can delay and charge interest. Best practice to get signed copy of resicion notice prior to funding.

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