Which Law Restricts The Sharing Of Information Given When A Consumer Applies For A Mortgage Loan?

Which law restricts the sharing of nonpublic personal information given when a consumer applies for a mortgage loan? The Gramm-Leach-Bliley Act is the federal law that limits or restricts the use of a consumer’s nonpublic personal information.

Who is responsible for ensuring that the closing disclosure is delivered to the consumer quizlet?

A: Creditor [CORRECT] Explain: The creditor is generally required to ensure that the consumer receives the Closing Disclosure no later than three business days before consummation of the loan.

Which document actually contains the borrower’s promise to repay the loan quizlet?

As the document that contains the borrower’s promise to repay the loan, the note is the most important document in a lending transaction.

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When a loan is characterized as conforming This means the loan?

A conforming loan is a mortgage with terms and conditions that meet the funding criteria of Fannie Mae and Freddie Mac. Conforming loans cannot exceed a certain dollar limit, which changes from year to year. In 2021, the limit is $548,250 for most parts of the U.S. but is higher in some more expensive areas.

Which of the following best describes the legal consequences of providing an inflated description?

Which of the following best describes the legal consequences of providing an inflated description of income on a loan application? It is a violation of multiple federal lending laws and constitutes fraud.

Who is responsible for delivering the closing disclosure?

The creditor is responsible for ensuring that the Closing Disclosure meets the content, delivery and timing requirements. If the Closing Disclosure is provided in person, it is considered received by the consumer on the day it is provided.

What is prohibited under respa?

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

Which law restricts the sharing of nonpublic personal information given when a consumer applies for a mortgage loan?

The Gramm-Leach-Bliley Act seeks to protect consumer financial privacy. Its provisions limit when a “financial institution” may disclose a consumer’s “nonpublic personal information” to nonaffiliated third parties.

What document represents the borrowers promise to repay the loan?

The mortgage, which is also called a deed of trust or a security instrument, represents the borrower’s promise to repay the loan secured by the home. It is the document that permits the lender to foreclose on the property and take possession if a homeowner does not make their mortgage payments.

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Which of the following document represents the borrower’s promise to pay?

The mortgage, which is also called a deed of trust or a security instrument, represents the borrower’s promise to repay the loan secured by the home. It is the document that permits the lender to foreclose on the property and take possession if a homeowner does not make their mortgage payments.

What legislation regulates the proper management of escrow accounts?

What legislation regulates the proper management of escrow accounts? RESPA (Real Estate Settlement Procedures Act) (Regulation X) regulates the management of escrow accounts.

What was the first law that Congress enacted to combat predatory lending?

Dodd-Frank: Title XIV – Mortgage Reform and Anti-Predatory Lending Act.

What makes a loan non conforming?

A non-conforming loan is simply any mortgage that doesn’t conform to the requirements set forth by Fannie Mae and Freddie Mac. Non-conforming loans commonly include jumbo loans (those above Fannie Mae and Freddie Mac limits) and government-backed loans like VA loans, FHA loans or USDA loans.

What is Section 32 of Regulation Z?

Section 32 of Regulation Z implements the Home Ownership and Equity Protection Act of 1994 (HOEPA). HOEPA protects consumers from deceptive and unfair practices in home equity lending by establishing specific disclosure requirements for certain mortgages that have high rates of interest or assess high fees and points.

What does the Truth in Lending Act Regulation Z require?

Regulation Z is a law that protects consumers from predatory lending practices. Also known as the Truth in Lending Act, the law requires lenders to disclose borrowing costs so consumers can make informed choices.

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Who protects respa?

RESPA applies to the majority of purchase loans, refinances, property improvement loans, and equity lines of credit. RESPA requires lenders, mortgage brokers, or servicers of home loans to provide disclosures to borrowers concerning real estate transactions, settlement services, and consumer protection laws.

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