Unit 4 Flashcards
(15 cards)
Regulation Z prohibits:
a) the advertising of credit terms.
b) advertising in general terms such as “reasonable monthly payments.”
c) Both A and B.
d) Neither A nor B.
d) Neither A nor B.
Regulation Z, also known as the Truth in Lending Act, is a federal regulation that requires lenders to provide clear and accurate information about the costs of borrowing, including interest rates and fees. It aims to protect consumers from misleading lending practices and ensure they can make informed financial decisions.
The Equal Credit Opportunity Act makes it illegal for the lender to refuse to grant a loan on the basis of:
a) a substandard FICO score.
b) a poor credit history.
c) income derived from public assistance.
d) the applicant’s age minority status.
c) income derived from public assistance.
Which of the following laws requires lenders to disclose the number of loans approved in certain areas?
a) Home Mortgage Disclosure Act
b) Federal Home Loan Mortgage Act
c) Truth in Lending
d) Uniform Commercial Coe.
a) Home Mortgage Disclosure Act
The Americans with Disabilities with Disabilities Act covers all of the following EXCEPT:
a) housing discrimination.
b) employment discrimination.
c) businesses that are public accommodations.
d) individuals with mental and physical disabilities including AIDS and alcoholism.
a) housing discrimination.
Under the provisions of RESPA:
a) The main thrust is to eliminate any kickbacks that might occur.
b) Buyers may not be compelled by the seller to use a particular title company.
c) Both A and B.
d) Neither A nor B.
c) Both A and B.
Under the provisions of RESPA, lenders must provide all of the following EXCEPT:
a) a special information booklet.
b) a good faith estimate of closing cost.
c) a HUD-1 Uniform Settlement Statement.
d) a comparative market analysis.
d) a comparative market analysis.
The National Flood Insurance Program:
a) is enforced by the New Jersey Department of Environmental Protection.
b) prohibits construction in areas designated “flood plains”.
c) requires that flood insurance be purchased by any borrower whose property is in a flood plain and is financed by a federally insured loan.
d) provides monetary relief to families who suffer financial losses caused by floods.
c) requires that flood insurance be purchased by any borrower whose property is in a flood plain and is financed by a federally insured loan.
Al but one of the following is included in the “finance charge” under the Truth in Lending provisions:
a) points.
b) loan finder fee.
c) attorney fee.
d) service charges.
c) attorney fee.
Under Truth in Lending it is permissible to advertise which of the following statements alone?
a) $2,000 down.
b) 4% interest.
c) Reasonable monthly terms.
d) No closing costs.
c) Reasonable monthly terms.
Truth in Lending laws apply to:
a) commercial loan transactions involving real property.
b) residential real estate mortgages.
c) all personal property transactions.
d) unconscionable contracts.
b) residential real estate mortgages.
Under Truth in Lending, the borrower (consumer), except in cases of first purchase money mortgage to acquire or construct a home, has a right of rescission upon notice for:
a) two calendar days.
b) 24 hours.
c) three business days.
d) 72 hours.
c) three business days.
Under Truth in Lending, it is permissible to have an ad which only states:
a) the interest rate.
b) the down payment.
c) “easy payment terms available.”
d) the monthly payment.
c) “easy payment terms available.”
Which of the following statements is NOT true?
a) The annual percentage rate combines the interest rate with other costs of the loan.
b) Under TIL, refinanced loans are covered regardless of amount.
c) The Truth in Lending Law is a federal law.
d) Advertising rules under TIL do not apply to owners acting without real estate agents.
d) Advertising rules under TIL do not apply to owners acting without real estate agents.
The primary purpose of the Truth in Lending Act is to:
a) save the general public money in their installment purchases.
b) disclose to the consumer the cost and conditions of the installment purchase.
c) limit interest rates.
d) protect creditors in financing transactions.
b) disclose to the consumer the cost and conditions of the installment purchase.
The annual percentage rate must be revealed to:
a) an applicant for a residential first mortgage loan
b) an applicant for a commercial first mortgage loan
c) The Federal Trade Commission
d) The Federal Housing Administration
a) an applicant for a residential first mortgage loan
