Term
| What is the Truth in Lending Act also known as? |
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Definition
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Term
| To whom does Regulation Z apply? |
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Definition
| each individual or business that offers or extends consumer credit for residential loans. |
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Term
| If credit is extended for ________, ________, or __________ purposes, Reg Z does not apply. |
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Definition
| commercial, business, or agricultural. |
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Term
| What type of credit is a mortgage? |
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Definition
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Term
| What information must be covered in Truth in Lending Statements? |
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Definition
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Term
| Which is more important to disclose in truth in lending statements? |
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Definition
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Term
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Definition
| The actual cost of credit in the form of an annual interest rate. |
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Term
| APR is calculated to the nearest ___ percent. |
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Definition
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Term
| When must a lender provide a GFE to the borrower? |
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Definition
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Term
| What is a demand feature? |
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Definition
| It is a clause that allows the lender to demand repayment for any reason. |
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Term
| How many copies of the right of rescission must lenders supply to the borrower? |
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Definition
| 2 copies, along with one copy of the disclosure statement. |
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Term
| If a consumer wants to rescind the loan, when must he notify the lender? |
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Definition
before midnight of the third business day after either
1) the consummation of the loan,
2) the delivery of the right to rescind notice
3) the delivery of all disclosures. |
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Term
| How long does the lender have to return any money or property after a rescission notice? |
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Definition
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Term
| When are educational and state-required materials counted as advertisements? |
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Definition
| When they combine educational or state required information with a sales pitch. |
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Term
| What are trigger terms defined as? |
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Definition
| phrases that represent the most attractive features of a credit plan in the context of an ad. |
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Term
| What are 5 examples of trigger terms mentioned in the book. |
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Definition
1) The amount of down payment as a percentage or dollar amount.
2) The amount of any payment as either a percentage or dollar amount.
3) The number of payment or the period of repayment.
4) The amount of any finance charge.
5) That there is no charge for credit. |
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Term
| What must variable rate credit ads also say? |
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Definition
| APR might increase or change. |
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Term
| Is it okay for a lender to conceal more consumer friendly plans? |
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Definition
| No, they can't bait and switch followers. |
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Term
| How long must a lender keep evidence of compliance with TILA regulations? |
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Definition
| At least two years after the disclosure date. |
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Term
| What could a violating lender face when it comes to TILA regulations? |
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Definition
Payment of actual damages
Attorney's fees and court costs
Statutory damages: Up to two times the amount of the finance charge, as long as the figure is at or above $100 and at or below $1000. |
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Term
| What can violating lenders face for class action law suits? |
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Definition
| Actual damages or an amount ordered by the court with no minimum requirement per class member up to $500,000 or one percent of the lender's net worth. |
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Term
| When must a consumer lawsuit begin in relation to an actual violation? |
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Definition
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Term
| What does MDIA stand for? |
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Definition
| Mortgage Disclosure Improvement Act |
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Term
| What is RESPA also known as? |
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Definition
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Term
| If APR varies beyond certain thresholds, what is required? |
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Definition
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Term
| The TILA disclosures must be delivered within _ days after application and at least _ days before the consummation of a loan. |
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Definition
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Term
| If the APR changes significantly from the initial disclosure, the loan cannot close for _ days. |
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Definition
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Term
| What is the definition of "business day"? |
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Definition
| A business day is a day on which a creditor's offices are open to the public for carrying on substantially all of the creditor's business functions. |
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Term
| What is another definition of "business day" |
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Definition
| all calendar days except Sundays and legal public holidays. |
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Term
| Important Days in Mortgage Loan Origination for next several questions |
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Definition
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Term
| Annual Continuing Education |
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Definition
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Term
| Actually, I'm making a new set. |
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Definition
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