Unit 16 Quiz

Two major sections of Truth in Lending:

1) Annual Percentage Rate (A.P.R) 2) Advertising

Equal Credit Opportunity Act

A law for lenders that prohibits them from discriminating against race, color, religion, national origin, sex, family size, handicap, marital status, age or dependency on Punic assistance in the granting of credit to consumers.

What are the criteria for being considered a creditor under Truth in Lending?

A lender must lend funds 25 times a year and/or must lend the funds for at least five housing loans annually

RESPA (Real Estate Settlement Procedures Act)

Ensures that the buyers and sellers in a residential real estate transaction involving a new first mortgage loan have knowledge of all settlement costs.

Fair Lending Laws

Ensures that the various financial institutions and other firms engaged in the extension of credit exercise their responsibility to make credit available with fairness and impartiality and without discrimination on the basis of race, sex, etc....

Lily, a licensee, has been referring her first-time home buyers to Safe Insurance Company for all of their insurance needs. The insurance company has been providing Lily with "motivation" in the form of cash to keep the referrals coming. Which law or act prohibits this type of violation?

RESPA - this prohibits kickbacks or unearned fees paid to lender for referring customers to insurance agencies, etc.

Truth in Lending Law

The law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can conpare the costs of various lenders.

If a collector makes more than then ____ annual collections, or collects more than $____ he/she must be licensed as a California real estate broker.

10 $40,000

What is included in APR

The total finance charge to the total amount to be financed.