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The flashcards below were created by user acrummack on FreezingBlue Flashcards.

  1. Who is responsible for ADMINISTERING the rules of the Truth in Lending Act (TILA)
    Consumer Financial Protection Bureau (CFPB)
  2. Who Enforces the laws of the Truth in Lending Act (TILA)
    Banks = Federal Deposit Insurance Company (FDIC)

    Other = Federal Trade Commission (FTC)
  3. What is the purpose of the Truth in Lending Act (TILA)
    A statute that requires creditors to disclose key terms and costs to consumers for credit transactions.
  4. Truth in Lending Act is part of the ?
    Federal Consumer Credit Protection Act.
  5. The Truth in Lending Act (TILA) is often referred to as ?
    Regulation Z
  6. The Truth in Lending Act applies to each individual or business that offers or extends consumer credit if the following 4 conditions are met?
    • 1. The Credit is Offered to Consumers
    • 2. Credit is offered on a regular basis
    • 3. Subject to a Finance Charge and 4 plus installments
    • 4. The Credit is primary for personal, family or household purposes.
  7. When is a Truth in Lending Disclosure Required?
    • 1. Open-end Credit (Home Equity Line of Credit HELOC)
    • 2. Closed End Credit Arrangement (Set Payment Schedule Loans Fixed and Adjustable)
  8. What Defines an Application that requires Disclosure of the Truth in Lending Act (TILA) and Good Faith Estimate (GFE)?
    • P (Property Address)
    • E (Estimated Value)
    • N (Name)
    • C (Credit)
    • I (Income)
    • L (Loan Amount)
  9. How many days must the Truth in Lending Act Disclosure and Good Faith Estimate  (GFE) be made to the consumer upon establishing the definition of a loan application.
    Within (3) business days of application.
  10. The final Annual Percentage Rate (APR) disclosure is required to be accurate to within?
    • 1. 1/8 or .125% for regular loans (Fixed)
    • 2. 1/4 or .250% for ARM Loans (Adjustable)
  11. What is the definition of Consummation?
  12. When must you re-disclose the Trust In Lending Disclosure (TILA) and Good Faith Estimate (GFE)?
    If the original Annual Percentage Rate (APR) varies higher by:

    • 1. 1/8 or .125% for regular loans (Fixed)
    • 2. 1/4 or .250% for ARM Loans (Adjustable)
  13. When must re-disclosure of the Truth in Lending disclosure and the Good Faith Estimate be provided to the consumer (Borrower)?
    No later than three business days prior to consummation (Closing) of the transaction.
  14. What is the 3/7/3 Rule when referring to the Truth in Lending Act (TILA)
    Truth in Lending Disclosure must be provided to the consumer (Borrower):

    • 1. Three (3) Business Days from Loan Application (Pencil).
    • 2. Seven (7) Business Days before you can Consummate (close) the transaction.
    • 3. Three (3) Business Days prior to Consummation (Close) of the transaction for re-disclosure.
  15. What is the primary definition of a Business Day?
    Business day is a day on which a creditor's offices are open to the public for carrying on substantially all of the creditors business functions.

    This generally applies to most initial disclosures.
  16. What is the other definition of a business day?
    All Calender days except Sundays and legal public holidays
  17. What type of transaction requires a rescission period before a transaction can consummate (Close)?
    All Refinance transactions

Card Set Information

2013-06-16 19:53:42
Safe Test

20 Hours applying Mortgage Knowledge to Exam Preparation S.A.F.E Comprehensive.
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