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103 Cards in this Set
- Front
- Back
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Which of following is a benefit of real estate ownership? (a) Borrowing money against the value of the property. (b) Future appreciation. (c) Forced saving by paying down the amount owed. (d) All of the above |
(D) is correct. Often the greatest financial benefit of real estate ownership is that it can be used as security for a loan. By borrowing money against the value of the property, home purchasers benefit from present use, future appreciation (increase in value), and forced saving by paying down the amount owed. |
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Define: Discount Points |
An added loan fee charged by a lender to make the yield on a lower-than-market-interest VA or FHA loan competitive with higher-interest conventional loans. The price of one discount point is equal to 1 percent of the loan amount, or 100 basis points. |
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Define: Basis Point |
One hundredth of a percentage point (0.01%). Basis points are often used to measure changes in or differences between yields on fixed income securities, since these often change by very small amounts. |
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A request for notice of default would be of most help to the (a) beneficiary of a second trust deed. (b) trustor. (c) beneficiary of a first trust deed. (d) trustee. |
(A) is correct. Since foreclosure wipes out all junior liens, the holder of a junior lien should request the recording of a request for notice of default announcing that a default has occurred. |
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A deficiency judgment against a mortgagor is possible (a) when the current market value of the property is less than the remaining loan balance. (b) as long as market demand exceeds supply and prices continue to rise. (c) on a purchase-money mortgage. (d) never since anitdeficiency laws protect homeowners in California. |
(D): A deficiency judgment is a judgment against a borrower for the balance of a debt owed when the security for a loan is insufficient to satisfy the debt. A deficiency occurs when the foreclosure sale of a property produces less than the amount due on the loan. In California, a mortgagee cannot recover a deficiency judgment on a purchase-money loan. In those states where mortgages generally carry a "power of sale," creditors must bring a separate action to obtain a deficiency judgment. |
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What is the California Foreclosure Reduction Act? |
Effective January 1, 2013, revised procedure for non-judicial foreclosures; also known as the California Homeowner Bill of Rights. |
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What is the California Department of Business Oversight? |
California agency that regulates licensees and industries formerly under the control of the Department of Corporations and Department of Financial Institutions. More information is available at www.dbo.ca.gov/Licensees/default.asp. |
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What is the Unruh Civil Rights Act? |
Forbids discrimination as to sex, race, color, religion, ancestry or national origin in accommodations and business establishments. Under this law there can be no arbitrary eviction, rent increase or withholding of services by any landlord, including the owner of a non-owner-occupied single-family dwelling that is sold or leased for income or gain. |
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In addition to prohibiting discriminatory language in real property instruments, the Unruh Act also (a) requires more explicit notice be given to a trustor or mortgagor in default. (b) regulates the amount of home equity an owner can protect. (c) stipulates certain contract rescission rights. (d) regulates contracts between blood relatives and/or spouses. |
(A) is correct. California's Unruh Civil Rights Act covers contracts for goods and services. If a mortgage with a power-of-sale clause or deed of trust on a single-family owner-occupied residence stems from a contract that falls with the Unruh Act, even more explicit notice must be given to a trustor or mortgagor in default. |
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An agreement to sell a homeowner's equity in the home describes a (a) home equity mortgage (b) real property sales contract (c) deed of trust (d) bill of sale |
(A) is correct. A home equity mortgage is an agreement to sella homeowner's equity in a home. It is regulated by the California Civil Code, which requires specific notice, including the right of cancellation, to the homeowner |
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Define: Institutional Lenders |
Institutional lenders are those lenders who lend their own money. Savings and loan associations, banks, life insurance companies and mutual savings banks. |
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Define: Savings and Loan Association (S&L) |
A financial institution whose principal function is to promote thrift and home ownership. Depositors earn interest on their deposits, often at a higher rate than is offered at commercial banks. The S&L invests some of these deposits in residential mortgage loans, enabling more people to purchase and/or repair their homes. Savings and loan associations are active participants in the home loan mortgage market. |
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Define: Open-Ended Mortgage |
A mortgage loan that is expandable by increments up to a maximum dollar amount, the full loan being secured by the same original mortgage. |
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Define: Lock-In Clause |
A promissory note or land contract that prohibits the promissor from paying off the debt prior to the date set forth in the contract. |
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Define: Negative Amortization |
A situation that, even when the borrow pays their mortgage minimum payment, interest is not being paid resulting in the amount owed increasing. The unpaid interest gets added to the amount borrowed, and the amount owed increases. |
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Define: Loan-to-value Ratio |
The relationship between the amount of the mortgage loan and the value of the real estate being pledged as collateral. |
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Which of the following would NOT be illustrative of an institutional lender? (a) Insurance company (b) Savings and loan (c) Commercial bank (d) Mortgage company |
(D) is correct. Institutional lenders are those lenders who lend their own money. A mortgage company usually does not lend its own money, but rather acts in most cases as the representative of an institutional lender. They are sometimes referred to as "loan correspondents" or "loan brokerage firms." |
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Describe a fixed-rate mortgage |
Fixed interest rate; equal monthly payments of principal and interest until debt is paid in full. Stable, with long-term tax advantages; rarely assumable |
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Describe an Adjustable-rate mortgage (ARM) (also called flexible-rate or variable rate mortgage) |
Interest rate changes based on index; could increase payments, term, or principal; could have rate cap or payment cap. Very popular with lenders; rate cap of no more than 5% advisable; with payment cap, negative amortization possible; usually assumable. |
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Describe Graduated Payment mortgage (gpm) |
Lower monthly payments rise gradually over 5 to 10 years, then level off for remainder of term. Easier to qualify for. |
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Describe Graduated Payment Adjustable-Rate Mortgage (GPARM) |
Same as GPM, but additional payment change possible if index changes. Easier to qualify for; could be negative amortization. |
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Describe Growing Equity Mortgage (GEM) (also called rapid payoff mortgage) |
Fixed interest rate; payments vary by index or schedule. Rapid payoff as payout increases; income must also increase. |
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Describe Reverse Annuity Mortgage (RAM) (also called equity conversion mortgage) |
One-time or monthly payment(s) are made to borrower age 62 or older using property as collateral. Provides cash to homeowner; loan amount plus accrued interest is due when property is sold or at homeowner's death; high closing costs require independent loan counseling for homeowner. |
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Describe Renegotiable-rate mortgage (RRM) (also called rollover mortgage) |
Rate and payments constant for three- to five-year intervals; can change based on FHLBB index; rate cap of 5% over maximum 30-year term. Fair stable payments due to less-frequent changes in rate. |
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Describe Shared appreciation mortgage (SAM) |
Below-market rate and lower payments in exchange for losing some equity. Loss of equity makes investment more expensive. |
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A loan where lower monthly payments rise gradually over five to ten years, then level off for remainder of term is called a (a) Growing Equity Mortgage (GEM). (b) Reverse Annuity Mortgage (RAM). (c) Graduated Payment Mortgage (GPM). (d) Adjustable Rate Mortgage (ARM). |
(C) is correct. A Graduated Payment Mortgage (GPM) is a mortgage in which the monthly payment for principal and interest graduates by a certain percentage each year for a specific number of years and then levels off for the remaining term of the mortgage. |
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Which of the following types of lenders makes the greatest number of different types of loans? (a) credit unions. (b) insurance companies. (c) commercial banks. (d) mutual savings banks. |
(C) is correct. Commercial banks make the broadest range of loans, including those for real estate purchase, construction, and interim financing, and even consumer loans for home improvement. |
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When comparing mortgage bankers and mortgage brokers, which of the following is true? (a) Both deal exclusively in the primary mortgage market. (b) Mortgage bankers usually lend their own funds, while mortgage brokers arrange loans. (c) Both are corporations. (d) All of the above |
(B) is correct. A mortgage banker is a person, corporation or firm that normally provides its own funds for mortgage financing. A mortgage broker is a person or firm that acts as an intermediary between borrower and lender who negotiates, sells or arranges loans and sometimes continues to service the loans (also called a loan broker). |
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Define Real Property Loan Law |
(a part of the Real Estate Law) that allows a real estate broker to solicit borrowers or lenders or negotiate loans for real property. |
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What three things contribute to the maximum commission a broker can charge? |
The amount of the loan, the length of the loan term, and whether the loan is secured by a first or second deed of trust. |
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What is the Maximum Mortgage Loan Broker Commission of a 1st deed of trust, less than $30,000 for 3 years or more? |
10% of the loan amount. For 1st deed of trust $30,000 or more for less than 3 years, it will be 5% of the loan amount. |
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What is the Maximum Mortgage Loan Broker Commission of a 2nd deed of trust, less than $20,000 for 3 years or more? |
15% of the loan amount. For 2nd deed of trust with $20,000 or more, 2 to 3 years -- it will be 10% and 5% for less than 2 years. |
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What is the maximum chargeable mortgage loan broker costs and expenses for a loan up to $7,800? |
Actual costs or $390, whichever is less |
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What is the maximum chargeable mortgage loan broker costs and expenses for a loan between $7,800 to $14,000? |
Actual costs or 5% of loan amount, whichever is less |
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What is the maximum chargeable mortgage loan broker costs and expenses for a loan more than $14,000? |
Actual costs, but not more than $700 |
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A mortgage broker arranges a 3-year, $15,000 second loan secured by a deed of trust. The maximum commission that may be charged is (a) 15%. (b) 10%. (c) 5%. (d) no limit |
(A) is correct. 15% of the loan amount. For 2nd deed of trust with $20,000 or more, 2 to 3 years -- it will be 10% and 5% for less than 2 years. |
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Mortgage loan broker Mary Miller arranges a $20,000 loan secured by a second deed of trust for a homeowner who wants extra cash to pay off some credit cards. The loan term is 15 years. What is the total maximum fee that Mary can charge on this loan, including brokerage commission and expenses, considering the below facts? Mary's commission is: $20,000 × 10% = $2,000 Expenses are: $350 + $40 + $50 = $440 |
Both Mary's commission and the expenses come within the limitations of the Real Property Loan Law. The total maximum fee thus is $2,000 + $440, or $2,440. |
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True/False: Payments to on mortgage loans may be paid within 5 days of the due date without penalty. |
False. Payments may be made within 10 days of the date due without penalty. |
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A broker negotiated a loan for a buyer. He will need to prepare a (a) Mortgage Loan Disclosure Statement. (b) Real Estate Transfer Disclosure Statement. (c) Good Faith Estimate. (d) Natural Hazard Disclosure Statement. |
(A) is correct. A person who acts as a Mortgage Loan Broker and negotiates a loan for which a license is required, and for compensation, which is secured directly or collaterally by a lien on real property, regardless of the size of the loan, must deliver a written disclosure statement to the borrower. The statement must be delivered within three business days of receipt of the borrower's written loan application, or before the borrower becomes obligated to the loan, whichever is earlier. This is true whether the loan is being processed manually or electronically. |
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Define: California Residential Mortgage Lending Act |
An act administered by the Commissioner of Corporations which provides licensing authorizing mortgage lending and brokering. |
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Define: California Department of Business Oversight (DBO) |
California agency that regulates licensees and industries formerly under the control of the Department of Corporations and Department of Financial Institutions. |
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Define: California finance lender |
Licensee under the California Finance Lenders Law who is in the business of making consumer loans or commercial loans in which personal property may be used as collateral. |
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Define: California Finance Lender Law |
Allows licensed California lenders to make consumer or commercial loans in which personal property may be used as collateral. |
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Some lending activities are conducted under the rules of the California Residential Mortgage Lending Act. Which of the following are exempt under this Act? (a) A real estate broker licensed in California (b) Commercial banks (c) A court-appointed representative of an estate (d) All of the above |
(D) is correct. Real estate brokers licensed in CaliforniaInstitutional and noninstitutional lenders already licensed by the state or federal government, such as banks, savings and loan associations, trust companies, and insurance companies: - An individual or company making residential mortgage loans with his, her, or its own money - Government and pension plan employees - Court-appointed estate or other representatives - A trustee under a deed of trust The law also exempts a California finance lender licensed under the California Finance Lenders Law. A finance lender is someone who is in the business of making consumer loans or commercial loans in which personal property may be used as collateral. |
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WHAT IS THE TILA-RESPA RULE? |
The TILA-RESPA rule consolidates four existing disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) for closed-end credit transactions secured by real property into two forms: a Loan Estimate that must be delivered or placed in the mail no later than the third business day after receiving the consumer's application, and a Closing Disclosure that must be provided to the consumer at least three business days prior to consummation. |
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WHAT TRANSACTIONS DOES THE TILA-RESPA RULE COVER? |
The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property. It does not apply to: - HELOCs; - reverse mortgages; or - chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land). |
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WHAT ARE THE RECORD RETENTION REQUIREMENTS FOR THE TILA-RESPA RULE? |
The creditor must retain copies of the Closing Disclosure for five years after consummation. |
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WHAT ARE THE GENERAL REQUIREMENTS FOR THE LOAN ESTIMATE DISCLOSURE? |
For closed-end credit transactions secured by real property (other than reverse mortgages), the creditor is required to provide the consumer with good-faith estimates of credit costs and transaction terms on a new form called the Loan Estimate. |
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WHAT ARE THE GENERAL REQUIREMENTS FOR THE CLOSING DISCLOSURE? |
For loans that require a Loan Estimateand that proceed to closing, creditors must provide a new final disclosure reflecting the actual terms of the transaction called the Closing Disclosure. New three-day waiting period — If the creditor provides a corrected disclosure, it may also be required to provide the consumer with an additional three-business-day waiting period prior to consummation. |
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MAY A CONSUMER WAIVE THE THREE-BUSINESS-DAY WAITING PERIOD? |
Yes, under certain conditions. |
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WHEN MUST THE SETTLEMENT AGENT PROVIDE THE CLOSING DISCLOSURE TO THE SELLER? |
Creditors must deliver or place in the mail the Special Information Booklet not later than three business days after receiving the consumer's loan application. |
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DOES TILA-RESPA REQUIRE ANY OTHER NEW DISCLOSURES BESIDES THE LOAN ESTIMATE AND CLOSING DISCLOSURE? |
In addition to the Integrated Disclosures discussed above, the TILA-RESPA rule also changes some other post-consummation disclosures provided to consumers by creditors and servicers: the Escrow Closing Notice and mortgage servicing transfer and partial payment notices. |
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What is a kickback? |
A kickback is an illegal fee paid by a nonlicensee (such as a loan officer) to a salesperson or broker. |
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When must the settlement agent provide the seller its copy of the Closing Disclosure? (a) Only on the day of consummation (b) Up to 14 days after the day of consummation (c) No later than the day of consummation (d) None of these |
(C) is correct. The settlement agent must provide the seller its copy of the Closing Disclosure no later than the day of consummation. |
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Define: Consumer Financial Protection Bureau (CFPB) |
Federal agency created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to create and coordinate regulations intended to correct the mortgage lending practices that led to the housing crisis of 2007-2010. |
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Define: Impound Account |
A trust account established to set aside funds for future needs relating to a parcel of real property. Many mortgage lenders require an impound account to cover future payments for taxes, assessments, private mortgage insurance and insurance in order to protect their security from defaults and tax liens. |
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The purpose of an impound account is to (a) earn interest. (b) accumulate reserves for future recurring costs. (c) provide additional funds in the case of a foreclosure. (d) do none of these. |
(B) is correct. The lender may require that an impound account be established for the benefit of the borrower, to accumulate reserves for future recurring costs, such as property taxes and hazard insurance. |
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Define: Assumption |
The act of acquiring title to property that has an existing loan and security document (mortgage or deed of trust) and agreeing to be personally liable for the terms and conditions of the promissory note, including payments. |
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Define: Assumption (subject to) |
When a loan is taken "subject to," the seller agrees to remain liable and the buyer accepts no liability in the event of a deficiency on a foreclosure. |
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Why would a buyer want to take possession of an existing loan? |
Taking possession subject to an existing loan benefits the buyer, who cannot be held liable for any deficiency judgment that might stem from a default on the loan. Loan costs are usually lower than what would be paid to obtain a new loan. |
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Define: Acceleration Clause |
A provision in a mortgage, trust deed, promissory note or contract for deed (agreement of sale) that, upon the occurrence of a specified event, gives the lender (payee, obligee or mortgagee) the right to call all sums due and payable in advance of the fixed payment date. (See alienation clause) |
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A lender can demand full payment (or "call" the loan) for what reasons? |
If the borrower defaults by: - missing a payment, - failing to pay taxes, - committing waste by failing to maintain the property that is used for security, or - using the property for an illegal purpose. |
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Due-On-Sale-Clause |
A form of acceleration clause found in some mortgages, especially savings and loan mortgages, requiring the borrower to pay off the loan when the property is sold or title is transferred. |
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Define: Alienation |
The act of transferring ownership, title, interest, or estate in real property from one person to another. Property is usually sold or conveyed by voluntary alienation, as with a deed or assignment of lease.Involuntary alienation takes place when property is sold against the owner's will, as in a foreclosure sale or a tax sale. |
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Define: Construction loan (also known as interim loan) |
A short-term loan made during the construction phase of a building project, often referred to as a interim financing. |
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Define: Take-Out Financing |
In the usual large construction project, a developer obtains two types of financing: Interim financing to cover construction costs and permanent (or a take-out) financing when the building has been completed. |
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Define: Standby Takeout Commitment |
An agreement by an interim lender to advance funds to take out a construction lender. (See interim financing) |
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Define: Standby Fee |
Fee paid by builder to mortgage banker in exchange for agreement to make mortgage loans available at a stated price at a future time. |
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The clause in a mortgage note which permits the lender to declare the unpaid balance due and payable upon default by the borrower is called a(n) (a) defeasance clause. (b) acceleration clause. (c) due on sale clause. (d) none of the above |
(B) is correct. An acceleration clause is a provision in a mortgage, trust deed, promissory note or land contract that, upon the occurrence of a specified event, gives the lender the right to call all sums due and payable in advance of the fixed payment term. |
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Define: Uniform Residential Loan Application |
(Form 1003) typically used to qualify a prospective borrower purchasing a single-family residence. Form 1003 was prepared by Freddie Mac (formerly the Federal Home Loan Mortgage Corporation, or FHLMC) and Fannie Mae (FNMA, formerly the Federal National Mortgage Association) |
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Define: Equal Credit Opportunity Act (ECOA) |
Federal legislation passed in 1974 to ensure that 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. |
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Define: Fair Credit Reporting Act |
The Fair Credit Reporting Act gave consumers the rights of access to, and correction of, credit reports. |
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Which of the following is a commonly used method of analyzing a borrower (a )ZERO score. (b) FICO score. (c) SECA score. (d) FACTA score. |
(B) is correct. Several companies have created methods of analyzing a borrower's credit reports to produce a credit score. One of these companies is the Fair Isaac Corporation which produces a credit rating known as the FICO score. |
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California's Covered Loan Law applies to loans that do not exceed the maximum conforming limit established by Fannie Mae for (a) one-to-four-unit rental properties. (b) single-family properties only. (c) owner-occupied one-to four-unit properties.(d) one-to-four-unit investment properties. |
(C) is correct. California's Covered Loan Law, found in Financial Code sections 4970-4979.8, applies to loans that do not exceed the maximum conforming limit established by Fannie Mae for owner-occupied one- to four-unit properties. |
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Define: Leverage |
Using someone else's money to purchase a property. Refers to the ability to use the investment as collateral for a loan. |
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Define: Usury |
Charging interest at a higher rate than the maximum rate established by state law. |
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Define: Promissory Note |
An unconditional written promise of one person to pay a certain sum of money to another person, order or bearer at a future specified time. A broker who accepts a promissory note as a deposit from a prospective purchaser must generally disclose to the seller that the buyer's deposit is in the form of a promissory note. |
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Define: Joint and Several Liability |
A situation when more than one party is liable for repayment of a debt or obligation. A creditor can obtain compensation from one or more parties, either individually or jointly. (See liability) |
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Define: Negotiable Instrument |
A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The transferee then has the original payee's right to payment. |
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Define: Holder In Due Course |
The holder of a negotiable instrument (check or note) purchased for value when the instrument appears complete and regular on its face; is taken before its due date and without notice of previous dishonor; and the holder has no notice of any defects in title of the transferor. |
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Define: Judicial Foreclosure |
A method of foreclosing on real property by means of a court-supervised sale. In a judicial foreclosure, there is an appraisal, after which the court determines an upset price below which no bids to purchase will be accepted. (See nonjudicial foreclosure, strict foreclosure) |
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Define: Right of Redemption |
The right of a defaulted property owner to recover the property prior to its sale by paying the appropriate fees and charges. |
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Define: Power of Sale Clause |
A clause in a mortgage authorizing the holder of the mortgage to sell the property in the event of the borrower's default. The proceeds from the public sale are used to pay off the mortgage debt first, and any surplus is paid to the mortgagor. A power-of-sale clause is also found in trust deeds, giving the trustee authority to sell the trust property under certain circumstances. |
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Define: Regulation Z |
Implements the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit. |
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Define: Truth-In-Lending Act |
Federal law effective July 1969 as part of the Consumer Credit Protection Act and amended in 1982 by the Truth-in-Lending Simplification and Reform Act and later amendments. The main purpose of this law is to ensure that borrowers and customers in need of consumer credit are given meaningful information with respect to the cost of credit. |
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Define: Normal Rate |
The stated interest rate in a note or contract, which may differ from the true or effective interest rate, especially if the lender discounts the loan and advances less than the full amount. (See effective interest rate) |
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A lender that discriminates against a loan applicant because of race has violated the: (a) Equal Dignities Rule. (b) Truth-in-Lending Act. (c) Equal Credit Opportunity Act. (d) Lender's Law. |
(c) Equal Credit Opportunity Act. |
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In a mortgage, the lender is the: (a) mortgagor. (b) mortgagee. (c) maker. (d) holder. |
(b) mortgagee. |
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David Yoo bought Whiteacre and is making the former owner's original loan payments. If David defaults, the seller will be obligated on the loan. Which statement is TRUE? (a) David bought the loan. (b) David bought the property subject to the loan. (c) David is subject to a due-on-sale clause. (d) David does not have title to Whiteacre. |
(b) David bought the property subject to the loan. |
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In a deed of trust, the lender is the: (a) trustor. (b) trustee. (c) beneficiary. (d) holder. |
(c) beneficiary. |
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There is no right of redemption following a: (a) strict foreclosure. (b) trustee's sale. (c) judicial foreclosure. (d) mortgage foreclosure. |
(b) trustee's sale. |
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A $450,000 house can be purchased with a $90,000 down payment using the principle of: (a) borrowed funds. (b) leveraging. (c) partial financing. (d) home equity. |
(b) leveraging. |
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A deficiency judgment is NOT possible in California when: (a) market demand exceed supply and prices rise. (b) the mortgagee was the seller of the property. (c) the loan was to pay all or part of the purchase price of an owner-occupied residential dwelling of nor more than four units. (d) both (b) and (c) are correct. |
(d) both (b) and (c) are correct. |
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The Fed can increase or decrease the amount of money in circulation by all of the following EXCEPT: (a) establishing the discount rate. (b) issuing government securities. (c) raising or lowering reserve requirements. (d) buying and selling government securities. |
(b) issuing government securities. |
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In a deed of trust, the borrower is the: (a) trustor. (b) trustee. (c) beneficiary. (d) holder. |
(a) trustor. |
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A mortgage or trust deed can contain a provision requiring the borrower to pay off the loan when the property is sold or title is transferred. This is commonly referred to as a(n): (a) alienation clause. (b) acceleration clause. (c) due on sale clause. (d) transfer clause. |
(c) due on sale clause. |
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California usury laws apply primarily to: (a) financial institutions. (b) all lenders. (c) nonfinancial institutions. (d) private lenders. |
(d) private lenders. |
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A holder in due course must take a negotiable instrument: (a) within 90 days of its execution. (b) with knowledge of all defenses against it. (c) without notice of any defense against its enforcement. (d) for cash. |
(c) without notice of any defense against its enforcement. |
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Federal savings and loan activities are overseen by the: (a) FHLMC. (b) Office of the Comptroller of the Currency. (c) Federal Reserve Board. (d) FDIC. |
(b) Office of the Comptroller of the Currency. |
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The first step in bringing about a trustee's sale is to prepare a: (a) declaration of default. (b) notice of levy. (c) request for notice. (d) notice of default. |
(a) declaration of default. |
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Real estate is hypothecated by use of a: (a) promissory note. (b) negotiable instrument. (c) security instrument. (d) pledge. |
(c) security instrument. |
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To be a negotiable instrument, a promissory note must be: (a) a promise to pay money to the bearer. (b) an oral agreement. (c) payable at an indefinite future time. (d) signed by the bearer. |
(a) a promise to pay money to the bearer. |
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The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property. It DOES NOT apply to: (a) HELOCs. (b) reverse mortgages. (c) chattel-dwelling loans. (d) None of the above are covered by TILA-RESPA. |
(d) None of the above are covered by TILA-RESPA. |
