Nmls Ust- (8) Federal Truth In Lending Act - 1

Front 1

The Truth in Lending Act, which is Title 1 of the _____ _____ _____ _____ was enacted in 1968 in order to promote the informed use of the credit.

Back 1

Consumer Credit Protection Act

Front 2

The provisions of TILA are emplemented by _____ _____, issued by the Board of the Directors of the _____ _____ _____.

Back 2

Regulation Z, Federal Reserve System

Front 3

TIL Disclosure Statement must be delivered or mailed within _____ business days after receipt of written application, and no later than the _____th business day before the transaction is consummated.

Back 3

3, 7

Front 4

The most importent disclosures on the TIL discosure:

1.

2.

3.

4.

Back 4

1. APR

2. Finance Charge

3. Amount Financed

4. Total of the Payments

Front 5

The _____ represents the relationship of the total finance charge to the total amount financed, as a yearly rate.

Back 5

Annual Percentage Rate (APR)

Front 6

The disclosed APR must not be above or below the actual APR by more than _____ of 1% in a regular transaction.

Back 6

1/8th

Front 7

The _____ _____ is the cost of consumer credit as a dollar amount.

Back 7

Finance Charge

Front 8

The finance charge in a rela estate loan transaction might include the following types of charges?

Back 8

Interest, Points, Loan Fees, Assumption Fees, Finder's Fee, Mortgage Broker Fees, Premiums, 2rd party fees, etc

Front 9

The finance charge is the total of?

Back 9

Prepaid finance charges plus charges paid over the term of the loan.

Front 10

Finance charge does not include:

1.

2.

3.

Back 10

1. Points pd by the seller

2. Security interest charges

3. If the transaction is secured by real property or is a residential mortgage trasnsaction, bona fide and reasonable fees for title stuff, preparing loan related docs, notary services, credit reports, property appraisal or inspections, required amounts to be paid into escrow or trustee accounts.

Front 11

A _____ _____ ____ is any finance charged pd seperately, in cash or by check, before or at consummation of a transaction or withhelf from the proceeds of teh loan at any time.

Back 11

Prepaid Finance Charge

Front 12

Prepaid Finance Charges include:

1.

2.

3.

4.

5.

Back 12

1. Loan origination, discount, and commitment fees

2. Any prepaid PMI premium, FHA UFMIP, VA funding fee or USDA guaranty fee

3. Underwriting, processing, tax service & courier fees, if paid to the creditor

4. Buydown Funds

5. Prepaid Interest

Front 13

The _____ _____ is the actual amount of credit the borrower will receive from the creditor.

Back 13

Amount Financed

Front 14

In a closed-end transaction secured by real property or a dwelling, the disclosed finance charge and any disclosure affected by the finance charge are considered accurate if the finance charge is understated by $_____ or less or if it is overstated.

Back 14

$100

Front 15

When applying for an ARM, a _____ booklet must be provided at the time of application or before the consumer pays a nonrefundable fee.

Back 15

CHARM

Front 16

The _____ is an APR derived from average interest rates, points, and other loan pricing terms currently offered to consumeres by a representative sample of lenders for mortgage transactions that have low-risk pricing characteristics.

Back 16

APOR (Average Prime Offer Rate)

Front 17

A lender must provide a copy of each written appraisal, without charge, no later than _____ business days prior to consummation of the loan or _____ days after the creditor determines the loan will not be consummated.

Back 17

3, 30

Front 18

The ____ _____ _____ ____ covers all transactions secured by a dwelling, except HELOCS, extended under open-end credit plans, and loans secured by a consumer's interest in his timeshare.

Back 18

Loan Originator Compensation Rule

Front 19

A _____ _____ is a provision included in a law or regulation that provides protection against liability or penalty to an entity if certain conditions are met and/or good faith is demonstrated.

Back 19

Safe Harbor

Front 20

A creditor must mantain for _____ years after the date of payment sufficient records to evidence all compensation it pays to a loan originator and the compensation agreement that governs those payments.

Back 20

3

Front 21

A loan origiginator must maintain for _____ years after the date of the receipt or payment records evidencing all compensation and the compensation agreement that governs each receipt of payment.

Back 21

3

Front 22

A _____ _____ _____ is a nonrecourse consumer credit obligation in which a consensual security interest is credited in the consumer's principal dwelling the sercure one or more advances and other than in the case of default, any P, I or shared appreciated or equity is due and payable only after the dwelling is transferred or the consumer dies or ceases to occupy the dwelling as a principal dwelling.

Back 22

Reverse Mortgage Transaction

Front 23

In a reverse mortgage transaction, all borrowers must be at least _____ years old.

Back 23

62

Front 24

A county is considered to be _____ during a calendar yr if no more than two creditors transacted first lien covered transactions five or more times in the county.

Back 24

Underserved

Front 25

Advertising of consumer credit is regulated and disclosures of interest rates and points are required by which regulation?

Back 25

Regulation Z of Truth in Lending

Front 26

In regard to higher priced mortgage loans, a creditor or servicer may cancel an escrow account only upon termination of the underlying debt obligation; or _____ years after the loan was consummated, at the request of the customer.

Back 26

Five

Front 27

In regard to higher priced mortgage loans, an escrow account need not be established for a transaction, if, at the time of consummation, during any of the prior years more than ______% of the creditor's totaled covered transactions were secured by a first lien on properties that are located in counties that are either "rural" or "underserved"

Back 27

50%

Front 28

In connection with a customer credit transaction secured by a consumer's principal dwelling, a servicer must provide an accurate statement of the total outstanding balance required to pay off the borrower's debt in full as of a specified date no more than _____ business days after recieving a request from or on behalf of the consumer.

Back 28

7

Front 29

TILA provides that the APR advertised for a mortgage can deviate from the actual rate being offered to customers by _____%.

Back 29

0%

Front 30

Which law required distribution of the CHARM booklet to certain mortgage loan applicants?

Back 30

TILA

Front 31

If a mortgage broker charges a fee that exceeds the fee initially disclosed to the borrower, how many business days prior to the signing of closing docs must the MB provide re disclosure that explains the increase?

Back 31

3