Truth in Lending Reg Z
When a change in terms notice is required for an open-end loan (other than a home-secured loan), it must be provided at least _____ days before the changes go into effect.
45
All of the following would be included in the finance charge EXCEPT:
Taxes
Finance charges include:
A loan-origination fee charged by a real estate broker or lender PMI obtained by the lender as a requirement of a real estate loan Insurance policies required by the institution that will make the minimum monthly payments on a credit card if cardholder loses his or her job ^^^All of the above
Closed-end loans include:
Adjustable rate mortgages
For a closed-end loan, the institution must disclose:
The APR The finance charge The amount financed All of the above
For purposes of Regulation Z, loans are classified as:
Open-end or closed-end
When calculating the "amount financed," the _____________ are subtracted from the loan amount.
Prepaid fianced fees
Any attempt to coerce the appraiser is prohibited.
T
Civil penalties for violating the TILA and Regulation Z may include actual damages plus court costs.
T
Interest is included in the finance charge and in the APR.
T
For a home equity line of credit application received by phone or mail, initial disclosures must be mailed within three business days. These home equity line of credit disclosures must:
A statement that the consumer should retain a copy of the disclosures A statement of the time by which a consumer must submit an application to obtain specific terms disclosed Information concerning whether any terms may change prior to opening the plan, along with a statement that if a term changes before the plan is opened and the consumer therefore elects not to open the plan, that any fees the consumer paid will be refunded Payment terms, including the length of the draw period and any repayment period, an explanation of how the minimum periodic payment is determined, and timing of payments All of the above
For a home equity line of credit application received by phone or mail, initial disclosures must be mailed within three business days. These home equity line of credit disclosures must include:
A statement that the consumer should retain a copy of the disclosures A statement of the time by which a consumer must submit an application to obtain specific terms disclosed Information concerning whether any terms may change prior to opening the plan, along with a statement that if a term changes before the plan is opened and the consumer therefore elects not to open the plan, that any fees the consumer paid will be refunded Payment terms, including the length of the draw period and any repayment period; an explanation of how the minimum periodic payment is determined; and timing of payments All of the above
No funds may be disbursed to the consumer until the rescission period has expired.
T
Only consumer loans are covered under the Truth in Lending Act.
T
Additional disclosures are required for a loan meant to pay for:
College room and board
Regulation Z applies to a:
Consumer loan of $57,200 or less that is not secured by real estate
If your institution solicits customers to open credit card accounts, it must:
Explain all terms of the card
A financial institution cannot reduce the limit of a home equity credit line.
F
An ARM with a term of one year or less is covered under the mortgage servicing rules regarding the new ARM disclosures (initial and ongoing notices).
F
Open-end loans are loans in which the full loan amount is always advanced at closing.
F
Prepaid finance charges are in addition to the disclosed finance charge.
F
The APR is a standardized way of expressing the interest rate in a manner the customer can understand.
F
The TILA-RESPA Integrated Disclosure (TRID) Rule applies to all residential mortgage loans
F
The TILA-RESPA Integrated Disclosure (TRID) Rule applies to all residential mortgage loans.
F
Which is an open-end loan?
Home equity line of credit
A financial institution must provide specific program disclosures and booklets at time of application for:
HELOCs and ARMs
Which type of loan has a preset borrowing limit that may or may not ever be reached?
Open-end loan
Finance charges are NOT:
Imposed uniformly in cash and credit transactions
The Truth in Lending Act ensures that:
Loan terms are disclosed in a meaningful way
The Truth in Lending Act and Regulation Z protect consumers because customers:
Receive easy-to-understand information about loans Are protected from inaccurate or unfair billing practices Are assured that advertised products are truly available as advertised Are assured they will learn the actual and total cost of credit before becoming indebted ^^^All of the above
The right of rescission does not apply to a residential mortgage transaction where the funds are used for a home purchase and secured by that home.
T
The finance charge measures:
The cost of a loan
Loan applicants must receive the Closing Disclosure no later than _________ days prior to consummation.
Three business
The Truth in Lending Act requires that all of these be disclosed, EXCEPT:
Total maximum late fees that can be assessed
