Section 4 Chapter 6-9 Quiz

What is ECOA?

All access to loans

What is the CFPB

Consumer financial protection bureau provide a single point of accountability for enforcing federal consumer financial laws and protecting consumers in the financial marketplace

What is the consumer credit protection act?

Consumer protection laws safeguard purchasers of goods and services against defective products and deceptive, fraudulent business practices.

Under the telephone consumer protection act telephone solicitors cannot call before what local time

8 AM

Which protected classes or you need to ECOA? Fair housing? See notes for venndiagram

Both ECOA the fair housing act protect race color religion national origin and sex The classes unique ECOA or marital status age receipt of public assistance and anyone who is exercise their right under the consumer credit protection act Fair housing provides protection to familial status and disability

What is the Gramm leach Bliley act?

Companies explain their information-sharing practices to their customers and to safeguard sensitive data.

What is subprime lending?

Description subprime lending, the practice of extending credit to borrowers with low incomes or poor, incomplete, or nonexistent credit histories

Companies which engage in telephone solicitations must update their copy of the national do not call list

Every 31 days

What is FACTA?

Fair and accurate transactions act for Identity theft

What is the FTC

Federal trade commission protects consumers by stopping unfair, deceptive or fraudulent practices in the marketplace

If a person or firm creates an Internet website that looks exactly like a financial institutions website and uses a site to get enough public information about the firms customers this is known as

Fishing. The Graham Leach Bliley act requires watch procedures to prevent this practice

What is HMDA?

Home mortgage disclosure actData collection and discriminatory practices

The privacy notice an opt out provisions of the Gramm leach Bliley act apply to

Non-public personal information of customers not consumers customers have an ongoing relationship with the firm ware consumers may have no or incidental dealings with the firm

What are the corresponding regulations for RESPA Tela ECOAHMDA and FACTA? What is the purpose of this activity See chart in notes

Purpose of activity: to associate law and regulation and no which government entity administers the law RESPA regulation X CFPB Tela regulation Z CFPB and FTC ECOA regulation B CFPB HMD a regulation C CFPB FRB and others Factor regulation V FTC and other federal agencies

What is a RESPA?

Real estate settlement procedures act No Referral fees and kickbacks

The statement on supreme lending makes each of the following recommendations to lenders except

Risk clearing occurs when lenders have Two or more factors in a loan which makes alone a high-risk alone the statement discourages lenders from engaging in risk Learing so choice B is a false statement. Being that Lender should engage in risk layering as they should not

What is TILA?

Terms and cost disclosures

What is the FRB

The FRB is an independent non-governmental agency in charge of conducting monetary policy through open market operations or setting interest rates

What is the purpose of the Federal Trade Commission act?

The FTC protects consumers by stopping unfair, deceptive or fraudulent practices in the marketplace.

In 2007, the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators issued a joint statement entitled "Guidance on Nontraditional Mortgage Product Risks" which addressed itself primarily to:

The Guidance on Nontraditional Mortgage Product Risks addressed itself primarily to mortgage companies, both mortgage bankers and mortgage brokers. The correct answer is: Mortgage bankers and mortgage brokers

The FRB statements on subprime lending states that lenders to engage in predatory lending practices are in violation of which of the following federal laws?

The federal trade commission's act section 5

A company that engages in telephone solicitations may call a person whose telephone number is on the national Do Not Call List:

The only permissible exception to the prohibition against calling people whose number is on the Do Not Call list is if the company has an existing business relationship, such as if the customer purchased something from the firm within the past 18 months. The correct answer is: If the consumer purchased something from the firm within the past 18 months

Payment shock is especially likely to occur when:

While any interest rate adjustment might result in payment shock for some, the largest payment adjustment is likely to occur either at the first rate adjustment (which was not a choice in the question) or when the loan is recast. To recast a loan means to recompute the payments amortizing the loan over the remaining term of the loan. These adjustments are rarely subject to any payment or rate cap. The correct answer is: A loan is recast

Practices such as making loans based primarily on the liquidation value of a property, and/or repeated refinancings of a property and/or the use of deception in concealing the true nature of the loan or its ancillary products from unsophisticated borrowers are all given in the FRB Statement on Subprime Lending as examples of:

While these practices are certainly unethical, the best answer is that these practices are listed as examples of predatory lending. The correct answer is: Predatory lending