RE: Types of Loans, Terms, and Issues
Truth in Lending Act
Which of the following acts created regulations for advertising credit services?
Real Estate Settlement Procedures Act
Which of the following lending regulations apply to mortgage loans and settlement services?
Subprime lenders
Who are a valuable part of the mortgage process, making homeownership possible for many who would not otherwise qualify for loans?
subprime
Borrowers with B, C, and D credit ratings are considered what type of borrowers?
5%
Interest rates that are more than ______ over the current market rate are considered predatory lending.
The Homeowner and Equity Protection Act
What act is an amendment to the Truth in Lending Act? This act addresses abusive practices in refinancing and home equity loans by requiring special disclosures and restrictions on loan terms.
Equity skimming
occurs when an investor receives title to a property, and usually rents out the home but doesn't make the mortgage payments. This usually ends up in foreclosure.
