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25 Cards in this Set
- Front
- Back
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Provides comparisons of payments made and the principal reduction of the loan in the…. |
First five years |
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Informs borrower of the total amount of interest the borrower will pay over the loan term as a percentage of the loan amount |
Total Interest Percentage (TIP) |
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What do LE not apply to? |
Home Equity Lines of credit Reverse mortgages Loans to secure a fractional interest in real estate Loans for mobile homes or dwellings not affixed to real property Loans made by a person or entity that makes five or fewer mortgages in a calendar year Loans made by non-natural persons |
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What do LE apply to |
Vacant land or land consisting of 25 acres or more Construction-only loans Loans made to certain trusts utilized for tax and estate planning purposes |
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What happens if a mortgage broker completes the Loan Estimate? |
Whole sale lender’s name (if known) must be used |
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Who has the ultimate responsibility to correct and timely deliver the disclosures to the consumer? |
Creditor |
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The estimate of charges and for all settlement services must be available for at least…. |
10 business days |
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What does the 10-business-say provision not apply to? |
Interest rate, charges, and terms dependent upon the interest rate |
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How do determine if the loan was made in good faith? |
Determined by the difference of the initial cost estimate and the final costs charged at loan closing |
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If closing costs on the Closing Disclosure are Greater than what is disclosed initially on the LE |
LE not made in good faith |
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If closing costs on the Closing Disclosure are less than the LE |
Acted in good faith |
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What are subject to tolerance limits? |
Settlement service provider charges Recording fees |
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What is the 10% cumulative tolerance? |
The sum of certain charges cannot exceed 10% when lumped together |
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Fees that are paid to any party other than the creditor |
Third-party charges |
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How long does the creditor have to refund the consumer who has experienced an excess amount of charges beyond the applicable tolerance threshold? |
60 calendar days |
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Charges subject to zero tolerance |
Any amount charge beyond amount disclosed must be refunded to the consumer |
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Charges subject to 10% tolerance |
The Difference must be refunded to the consumer |
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When are lenders permitted to provide a revised Loan Estimate? |
Changed circumstance in settlement Changed circumstance in eligibility Revisions requested by the consumer Interest rate dependent charges Expiration of 10 business day period Delayed settlement date on construction loans |
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When must a revised LE be sent? |
Three business days of receiving info sufficient to establish that an event permitting redisclosure has occurred |
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When must an LE be sent? (Not the 3 business day one) |
4 business days prior to consummation |
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A revised Loan Estimate must not be…. |
Issued once the Closing Disclosure has been delivered |
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When is a revised LE considered received? |
On the day it is provided |
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What if the revised LE is mailed or delivered electronically? When is it considered delivered? |
Three business days after the disclosures are mailed or transmitted |
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Any day the creditors offices are open to the public for the purpose of transacting substantially all of the creditors business |
Standard business day |
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A business day means all calendar days except Sunday’s and legal public holidays |
4-business-day period prior to consummation |
