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21 Cards in this Set
- Front
- Back
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TILA gives a consumer a _____ _____ _____, allowing him to cancel the loan contract within a specified period of time for any reason if the loan is secured by the borrower's principal residence and is a
1. 2nd mortgage 2. home improvement loan 3. HELOC 4. refinance |
Right of Recission
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Within _____ days after receiving the rescission notice, the creditor must return any money or property received by anyone in connection w/the transaction; take appropriate steps to show that the mortgage or trust deed is voided and the consumer has no responsibility for the loan or any finance charges associated w/it.
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20
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If the creditor fails to provide the required disclosure and notice of the right of rescission, the rescission period may be extended up to the date of the first of the following: 1. 2. 3. |
1. 3 yrs after the consummation of the transaction 2. Transfer of all the consumer's interest in the property 3. Sale of the property |
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Right of recsission is extended if the lender's disclosure of the finance charge is understated by more than _____% of the credit transaction or $_____, whichever is greater. |
.5%, $100 |
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A consumer has a right to rescind the transaction after initiation of a foreclosure action on his principal dwelling securing the loan if the disclosed finance charge is understated by more than $______. |
$35 |
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The TILA requres lenders or mortgage brokers to make certain disclosures on loans subject to the RESPA within _____ days after their receipt of a written application |
3 |
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When a loan is secured by the borrower's principal residence, has a rate that will fluctuate after settlement of the laon and a term that exceeds _____ year, additional disclosures must be made.
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One
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If the right of rescission is exercised, the security interest involved in the transaction and given to the creditor is _____. |
Canceled |
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The loans covered under HOEPA are called _____ _____ loans. |
Section 32 |
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For a Section 32 first-lien loan, the APR is more than _____ percentage points greater than the APOR. |
6.5 |
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PMI coverage may be automatically cancelled if the borrower is current on his loan payments and he has paid his mortgage down to _____% of the property's original value. |
78% |
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The _____ _____ _____, signed in 1998 and amended in 2000, was enacted to assist homeowners in the cancellation and termination of PMI once the requirement to maintain such coverage has passed. |
Homeowners Protection Act |
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Records relating to minimum standards for transactions must be retained for _____ years after consummation of a transaction as evidence of compliance. |
3 |
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A QM of $_____ or more may not have points and feeds that exceed _____% of the total loan amount. |
$100,000; 3% |
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_____ is the time within a loan's term at which the payments that will fully amortize the loan are required. |
Recast |
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The _____ _____ _____ is the interest rate that is calculated using the subject loan's index of formula that will apply after the recast and the maximum margin that may apply at any time during the life of the loan. |
Fully Indexed Rate. |
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Under the _____ _____ _____ Rule, a creditor may not make a covered loan unless it makes a reasonable and good faith determination at or before the consummation that the consumer will have a reasonable ability to repay the loan according to its terms. |
Ability to Repay |
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The _____ _____ _____ _____ _____ _____ of 1994 amended the TILA by adding disclosures for high-rate, high fee loans. |
Home Ownership & Equity Protection Act (HOEPA) |
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For how long after the date disclosures are required to be made or action is required to be taken must a creditor retain evidence of compliance with Regulation Z? |
Two |
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When TILA provides a right of rescission in a loan trasaction in which there are multiple borrowers and co borrowers who may exercise their right to rescind? |
Any consumer with an interest in the property |
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HOEPA applies to which type of high cost loan?
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2nd mortgage
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