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31 Cards in this Set
- Front
- Back
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What is the Federal Reserves Board regulation Z?
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Federal Truth In Lending Law
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Who enfoces Reg. Z?
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Federal Trade Commission
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What are the 2 purposes of RegZ?
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1 Inform consumers of the total cost of credit
2 Allow consumers to compare credit terms |
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T or F Does regZ set interest rates?
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False
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who must comply with reg Z?
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1 Creditors
2 Arrangers of credit 3 Consumer credit 4 all residential real and personal property loans |
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4 types of financing that need not comply with reg z.
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1 Buisness loans
2 commercial loans (over 4 units are considered commercial) 3 Loans with 4 or fewer installments 4 Loans with no finance charges |
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The lender must provide the borrower a ______ _______ no later than when the lender makes a loan commitment.
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Disclosure Statement
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What 2 things are the most important disclosures?
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1 Finance charges
2 APR |
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when the customer has a limited right to rescind the credit transaction, what is this called?
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Rescission
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Rescission is the right given to protect HO from unscrupolous businesses who secure credit by __________ for home improvements, furniture, appliances, et.
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taking a second mortgage on the customer's home
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In a rescission the borrower has the right to cancel the loan by ______ of the ________ following signing the note.
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midnight
3rd business day |
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What purchases does not apply to rescission?
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construction loans
loans for the acquistion of real estate |
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What purchase does apply to rescission?
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loans to purchase residential lots
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all forms of real estate advertising of credit terms are ______.
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regulated
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Only the ____ ____ and/or the _____ may be advertised alone.
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cash price
APR |
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name 5 "trigger terms"
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down paymt
amt of any paymt finance chg in dollars number in installments paymt period |
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Use of any _______ terms requires full disclosure of other credit terms.
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trigger
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name 3 disclosure terms
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down payment
repayment terms APR |
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_____ terms are allowed w/o having to disclose the other financing terms.
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general
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name 4 general terms
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low interest rate
low down payment FHA & VA financing available Fast loan approval |
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What type of term is this?
down payment |
trigger
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What type of term is this?
amount of any payment |
trigger
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What type of term is this?
finance charge in dollars |
trigger
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What type of term is this?
number of installments |
trigger
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What type of term is this?
payment period |
trigger
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What type of term is this?
down payment |
disclosure
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What type of term is this?
repayment terms |
disclosure
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What type of term is this?
APR |
disclosure
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What type of term is this?
low interest rate |
general
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What type of term is this?
FHA & VA financing available |
general
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What type of term is this?
Fast loan approval |
general
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