Upgrade to remove ads
Only $35.99/year

Chapter 7 module 3 Vocab quiz

Terms in this set (16)

Loan estimate
A lender disclosure containing a good faith estimate of closing costs, loan terms, and the cost the borrower must pay for a real estate loan, including the annual percentage rate. The lender must give this to the borrower within three business days of the completion of the loan application. Required by RESPA and the truth in lending act for all Federally related residential transactions
Real Estate Settlement Procedures Act (RESPA)
Federal law dealing with real estate closings that provide specific procedures and guidelines for the disclosure of the settlement costs. Implemented by regulation X, Which is under the oversight of the consumer financial protection bureau
Rescission
The annulment They contract by mutual consent of the parties.
TRID rule
TILA-RESPA Integrated Disclosure Rule, Issued by the consumer financial protection bureau to create standardize, consumer friendly disclosure documents, including the loan estimate and the closing disclosure
Trigger Terms
A word or phase that describes a loan, Including the down payment, terms, and monthly payment. If an ad uses a trigger term, additional disclosures are required to comply with the truth in lending act
Truth in Lending Act (TILA)
Federal law that requires disclosure of terms of credit by a creditor to a prospective borrower. Implemented by regulation Z, which is under the oversight of the consumer financial protection bureau
Which of the following requires lenders to inform borrowers, when buying a home secured by mortgage or trustee, of all finance charges, fees, and interest
Regulation Z, Requires that lending institution Discloses to the borrower the actual, total cost involved in acquiring credit
Regulation Z Implements what federal lending law
Truth in lending act Which requires lenders to disclose the actual/total cost involved in acquiring credit, is implemented by regulation Z
Charging interest rates in excess of state maximum allowed is known as
usury,

And is subject to lender penalties
What agency enforces the truth in lending act
Consumer financial protection bureau is tasked with enforcing consumer financial protection laws
Of these transactions, which would not fall under the provisions of RESPA
Dick is buying an old barn to turn into a car wash

RESPA Applies to any federally related mortgage loan secured by a first or subordinate lien on a residential real property design for 1 to 4 families.
The booklet "Your home loan tool kit" is requirement of
RESPA, Vendors are required to give borrowers this booklet within three business days of loan application
Real estate settlement procedures act applies to all the following transactions except
Commercial Loans
How many days would a lender have to give the buyer a loan estimate disclosure in a residential loan transaction
3 business days from Loan application
Who would not have the right to rescind a loan
Penny makes a 40% down payment when she gets a loan to purchase a house

The right to rescind extends to three days after closing but applies only to home equity loans and refinances. There is no rescission for purchase loans unless the lender does not provide the required disclosures
What does the APR disclosure tell a borrower
The total cost of a loan including fees and interest
Other sets by this creator