section 18 unit 1 exam: RESPA,TILA, Regualtion Z, and property lending in Ga
In the residential mortgage market, charging borrowers more than ______ over market rate for interest is considered a predatory lending practice.
5%
What does the acronym GAFLA stand for?
Georgia Fair Lending Act
What's the purpose of the Community Reinvestment Act?
It requires that lenders invest in development and rehabilitation efforts that enable low- and moderate-income individuals and families to afford a home.
A bank that addresses a community development need in its assessment area and donates to recovery efforts of a flooded lower-income area might be an example of the bank supporting what act?
community reinvestment act
Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin?
equal credit opportunity act
Which service providers are exempt from GAFLA provisions?
insurance provides
Bo's real estate ad states: "Custom homes for sale with scenic mountain views. Easy financing and low down payments." What else must be included in the ad in order for it to comply with TILA?
nothing
Which of the following lending regulations apply to mortgage loans and settlement services?
real estate settlement procedures act
Borrowers who fall into the ______ category may be faced with paying interest 1% to 5% over the current market rate.
subprime
In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer?
the consumers lender
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document?
to provide the estimated closing costs for Lawrence loan
Which of the following acts created regulations for advertising credit services?
truth in lending act
