TRID 1 Flashcards
What does TRID stand for?
- TILA/RESPA Integrated Disclosure
- Truth in lending
- RESPA
- Integrated
- Disclosure.
What does TILA stand for?
The Truth in Lending Act
Truth in Lending Act
- TILA
- Born in 1968
- Consumer Protection Act regarding the cost of credit.
- Consumers must be given detailed information and Loan Estimate 3- page document the consumer gets
within 3 days of getting a mortgage loan specific disclosures at the time of the loan. - Also, known as Regulation Z
Loan Estimate
3- page document the consumer gets
within 3 days of getting a mortgage loan.
Trigger Terms Truth in lending In advertising a lender cannot say
- Specific Interest rate
- Down payment amounts
- Monthly payment amount
- Dollar amount of the finance charged
- Term of loan
Trigger Terms Kickoff the Need For
- Cash price
- Required down payment
- APR
- Amount of all payments and due dates.
“APR” stands for
Annual Percentage Rate
Right of Rescission
when a borrower is getting a loan under Reg Z (truth in lending) the borrower has a 3-day period that they can fully cancel the loan. Does not apply to purchase money mortgages. Home buyers do not have the right of rescission.
The acronym “TRID” stands for:
A: TILA/RESPA Integrated Disclosure
B: Truth In Real Investment Disclosure
C: Trust In Real Investment Disclosure
D: Transfer Of Reconveyance Integrated Disclosure
A: TILA/RESPA Integrated Disclosure
The acronym “TILA” stands for:
A: The Acronym “TILA” Stands For:
B: Title In Lending Act
C: Trust In Licensing Act
D: Truth In Lending Act
D: Truth In Lending Act
Which federal law requires the lender to disclose the Annual Percentage Rate?
A: Equal Credit Opportunity Act (ECOA)
B: Real Estate Settlement And Procedures Act (RESPA)
C: Truth In Lending Act (TILA)
D: Sherman Anti-Trust Act
C: Truth In Lending Act (TILA)
Another name for TILA is:
A: Regulation X
B: Regulation A
C: Regulation Z
D: Regulation H
C: Regulation Z
What does RESP stand for?
Real Estate Settlement and Procedures Act
RESPA
A consumer protection statute, passed in 1974
* The purpose of RESPA are:
* To help consumers become better shoppers for settlement services and
* To eliminate KICKBACKS and referral fees that unnecessarily increase the COSTS of certain settlement services.
When does RESPA apply?
RESPA covers loans secured with a federally related mortgage placed on a one-to-four residential property, cooperative, or condominium. This includes equity lines
of credit when need as a part of a purchase.
Occupant type = ANY. Federally - related mortgage loans from lenders whose
deposits are insured by a federal agency. HUD and the CFPB (Consumer Financial Protection
Bureau) are responsible for enforcing RESPA.
When does RESPA NOT apply?
Loans on large properties more than 25 acres.
Loans for business or agricultural purposes.
Construction loans or other temporary financing.
Vacant Land
Seller-Financed transactions
Assumable loans- such as FHA, EA loans and cash