Question 1

Regulation Z deals with

Accepted Answer

A)   annual percentage rates.
B)   escrow fees.
C)   truth-in-lending.
D)   statue of frauds.

Question 2

Which of the following loans would be exempt from the disclosure requirements of the truth-in-lending laws?

Accepted Answer

A)   An unsecured personal loan of $3,000
B)   An educational loan from a commercial bank
C)   A second mortgage loan on a residence
D)   A $30,000 loan for the purchase of a $40,000 automobile

Question 3

Regulation Z requires a lender to disclose

Accepted Answer

A)   interest charges expressed as dollars and percent.
B)   dollar amount of any finance charge.
C)   APR as a dollar amount.
D)   all charges only as a percent.

Question 4

When making a mortgage loan application, borrowers are protected from discrimination based on marital status by the

Accepted Answer

A)   Fair Credit Reporting Act.
B)   Fair Housing laws.
C)   Equal Credit Opportunity Act.
D)   Real Estate Settlement Procedures Act.

Question 5

All of the following are important to a mortgage lender when determining whether or not to make a real estate loan EXCEPT

Accepted Answer

A)   the needs of the borrower.
B)   the borrower's income.
C)   the appraisal.
D)   child support payments.

Question 6

Which of the following is given consideration in evaluation of a loan application?

Accepted Answer

A)   Race
B)   Marital status
C)   Sex
D)   Income adequacy

Question 7

With regard to truth in lending laws, "Only $1,000 down payment" is legally permissible to advertise, without further explanation.

Accepted Answer

A) True 
 B)False

Question 8

Choose the one most appropriate answer for each.
-the ratio of the amount of the loan to the appraised value of the property

Accepted Answer

A)  APR
B)  cash value
C)  credit report
D)  credit scoring
E)  equityF) exempt transactionsG) Fair Credit Reporting ActH) Federal Consumer Credit Protection ActI) finance chargeJ) illiquid assetsK) liquid assetsL) loan-to-value ratioM) redliningN) Regulation ZO) right to rescissionP) settlement fundsQ) subprime loansR) Truth-in-Lending ActS) TILSRAT) trigger term

Question 9

The Federal Equal Credit Opportunity Act protects borrowers from discrimination based on

Accepted Answer

A)   handicap status.
B)   familial status.
C)   sexual preference.
D)   marital status.

Question 10

Choose the one most appropriate answer for each.
-the market value of a property less the debt against it

Accepted Answer

A)  APR
B)  cash value
C)  credit report
D)  credit scoring
E)  equityF) exempt transactionsG) Fair Credit Reporting ActH) Federal Consumer Credit Protection ActI) finance chargeJ) illiquid assetsK) liquid assetsL) loan-to-value ratioM) redliningN) Regulation ZO) right to rescissionP) settlement fundsQ) subprime loansR) Truth-in-Lending ActS) TILSRAT) trigger term

Question 11

Choose the one most appropriate answer for each.
-credit information used in advertising that requires additional credit disclosures

Accepted Answer

A)  APR
B)  cash value
C)  credit report
D)  credit scoring
E)  equityF) exempt transactionsG) Fair Credit Reporting ActH) Federal Consumer Credit Protection ActI) finance chargeJ) illiquid assetsK) liquid assetsL) loan-to-value ratioM) redliningN) Regulation ZO) right to rescissionP) settlement fundsQ) subprime loansR) Truth-in-Lending ActS) TILSRAT) trigger term

Question 12

Under the truth in lending act, the cost of credit extended must be expressed as an

Accepted Answer

A)   actual percentage rate.
B)   approximate percentage rate.
C)   annual percentage rate.
D)   average percentage rate.

Question 13

A lender can legally discriminate in loan terms based on the applicant's

Accepted Answer

A)   religion.
B)   marital status.
C)   race or skin color.
D)   intention to occupy (or not occupy)  the mortgaged property.

Question 14

Choose the one most appropriate answer for each.
-federal regulations that implement the enforcement of the Truth-in-Lending Act

Accepted Answer

A)  APR
B)  cash value
C)  credit report
D)  credit scoring
E)  equityF) exempt transactionsG) Fair Credit Reporting ActH) Federal Consumer Credit Protection ActI) finance chargeJ) illiquid assetsK) liquid assetsL) loan-to-value ratioM) redliningN) Regulation ZO) right to rescissionP) settlement fundsQ) subprime loansR) Truth-in-Lending ActS) TILSRAT) trigger term

Question 15

The federal Equal Credit Opportunity Act prohibits discrimination based on age, sex, marital status and ____________________.

Accepted Answer

The answer of The federal Equal Credit Opportunity Act prohibits...

Question 16

In analyzing a mortgage loan application, it is illegal for a lender to consider marital status.

Accepted Answer

A) True 
 B)False

Question 17

The Truth in Lending Act covers credit extended for a

Accepted Answer

A)   business or commercial transaction.
B)   large apartment building.
C)   mobile home which is used as a residence.
D)   loan secured by a car valued at $30,000.

Question 18

Choose the one most appropriate answer for each.
-refusal to make a real estate loan based solely on the location of the property

Accepted Answer

A)  APR
B)  cash value
C)  credit report
D)  credit scoring
E)  equityF) exempt transactionsG) Fair Credit Reporting ActH) Federal Consumer Credit Protection ActI) finance chargeJ) illiquid assetsK) liquid assetsL) loan-to-value ratioM) redliningN) Regulation ZO) right to rescissionP) settlement fundsQ) subprime loansR) Truth-in-Lending ActS) TILSRAT) trigger term

Question 19

When considering loan applications, lenders like to see good ____________________ records.

Accepted Answer

The answer of When considering loan applications, lenders like to...

Question 20

When advertising, a lender must disclose the closing costs.

Accepted Answer

A) True 
 B)False

Exam 11: The Loan and the Consumer

Regulation Z deals with

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The Truth in Lending Act covers credit extended for a

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The Federal Equal Credit Opportunity Act protects borrowers from discrimination based on

Correct AnswerverifiedShow Answer

A lender can legally discriminate in loan terms based on the applicant's

Correct AnswerverifiedShow Answer

In analyzing a mortgage loan application, it is illegal for a lender to consider marital status.

Correct AnswerverifiedShow Answer

When making a mortgage loan application, borrowers are protected from discrimination based on marital status by the

Correct AnswerverifiedShow Answer

With regard to truth in lending laws, "Only $1,000 down payment" is legally permissible to advertise, without further explanation.

Correct AnswerverifiedShow Answer

Choose the one most appropriate answer for each. -the market value of a property less the debt against it

Correct AnswerverifiedShow Answer

When considering loan applications, lenders like to see good ____________________ records.

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Choose the one most appropriate answer for each. -refusal to make a real estate loan based solely on the location of the property

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Which of the following loans would be exempt from the disclosure requirements of the truth-in-lending laws?

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The federal Equal Credit Opportunity Act prohibits discrimination based on age, sex, marital status and ____________________.

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Choose the one most appropriate answer for each. -federal regulations that implement the enforcement of the Truth-in-Lending Act

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All of the following are important to a mortgage lender when determining whether or not to make a real estate loan EXCEPT

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When advertising, a lender must disclose the closing costs.

Correct AnswerverifiedShow Answer

Choose the one most appropriate answer for each. -credit information used in advertising that requires additional credit disclosures

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Choose the one most appropriate answer for each. -the ratio of the amount of the loan to the appraised value of the property

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Which of the following is given consideration in evaluation of a loan application?

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Under the truth in lending act, the cost of credit extended must be expressed as an

Correct AnswerverifiedShow Answer

Regulation Z requires a lender to disclose

Correct AnswerverifiedShow Answer

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