TILA Reg Z part 3 Flashcards
What is a higher risk mortgage?
HPML that is not a qualified mortgage
what are the requirements for a higher risk mortgage?
- -appraisal is required (must include a physical inspection of interior of the property)
- -transactions less than $27,200 are exempt
- -disclosure must be delivered or mailed no later than 3 days after application
True or False
An appraisal waiver can be granted for higher risk mortgage.
False
It cannot be waived. Copy of any written appraisal performed must be provided no later than 3 business days prior to close.
when is a 2nd appraisal needed?
flipping transaction (2nd appraisal at no cost to applicant)
How can a loan originators compensation vary based on?
amount of loan
NOT rate or points
what transactions are considered private education loans?
- -any funds post secondary education expense
- -not secured by real estate
what are the requirements for a private education loan?
- -terms guaranteed for 30 days
- -3 disclosures
- —-at application
- —–upon approval
- —-at closing with right to cancel language
- -borrower certification form from college
what loans are NOT subject to recision?
- home purchases
- refinance of same loan at same bank(no new money
Who has right to rescind?
Individual must have both:
- -principal dwelling
- -ownership interest
when does recision start running?
After all borrowers have received:
- -2 copies of recision notice
- -final CD
How many days does borrower have to rescind?
3 specific days
If recision requirements are not met, how long does customer have to rescind?
3 years
Can recision period be wavied?
yes
For a bona fide personal financial emergency
True or False
A bank cannot delay funding past 3rd day to ensure not rescinded.
False
They can delay and charge interest. Best practice to get signed copy of resicion notice prior to funding.
