RE Finance Ch.14
Which of the following loans is subject to the Truth in Lending Act?
A $27,000 loan secured by real property
Which of the following actions is NOT prohibited by the Real Estate Settlement Procedures Act?
Property flipping
Which of the following loans is exempt from the Real Estate Settlement Procedures Act?
A seller-financed loan
A lender charges a borrower an extremely high above-market interest rate and a larger origination fee than is justified by the services provided. This is known as:
fee packing
Which of the following advertising phrases does not require further disclosures under the Truth in Lending Act?
'Won't last; 6.33% APR'
After receiving a written loan application, how many days does a lender have in order to give applicants a loan estimate form?
3
How many days does a borrower have to rescind a home equity loan after receiving a disclosure statement, under the Truth in Lending Act?
3
The purpose of the Real Estate Settlement Procedures Act is to: a. eliminate kickbacks and referral fees in the settlement process b. provide borrowers with information about closing costs c. require disclosure of true costs of financing d. Both A and B
Both A and B
TILA imposes stricter standards on mortgage loans classed as: a. low-priced b. high-priced c. higher-priced d. Both B and C
Both B and C
Which of the following items would be included in a loan's finance charge?
Buyer-paid discount points
Use of which kind of insurance may be considered predatory, if a lender requires a borrower to pay a large, upfront premium for it at closing?
Credit life insurance
Which law prohibits discrimination in all applications for consumer credit, including residential mortgages?
Equal Credit Opportunity Act
Which law requires institutional lenders to submit annual reports to the federal government on loans issued, including geographic information on the property?
Home Mortgage Disclosure Act
Which of the following would NOT violate the Fair Housing Act?
Failing to disclose a loan's annual percentage rate
The Truth in Lending Act and the _____ are considered consumer protection laws, rather than fair lending laws.
Real Estate Settlement Procedures Act
Which of the following is NOT predatory lending?
Redlining
What is the purpose of the Community Reinvestment Act?
Require depository institutions to disclose numbers of loans made to low or middle-income borrowers
Which of the following items would not be included in the finance charge?
Title insurance premium
Which of the following borrowers is least likely to be a target for a predatory lender?
Trade-up buyers seeking a super jumbo loan for an expensive house
An adjustable-rate loan requires additional disclosures. Which of the following is not a required disclosure for an ARM?
Whether the lender requires the borrower to use a particular real estate appraiser
