Question 1

"Buy for less than $600 a month" contains a trigger term under Regulation Z and requires further disclosure.

Accepted Answer

A) True 
 B)False

Question 2

When considering loan applications, lenders like to see

Accepted Answer

A)  very little use of credit cards. 
B)  good repayment records. 
C)  derogatory information. 
D)  information at least seven years old. 
A)  very little use of credit cards. 
B)  good repayment records. 
C)  derogatory information. 
D)  information at least seven years old.

Question 3

The practice of lenders to refuse to make loans in certain areas regardless of the quality of the structure or the borrower's ability to repay the loan is called ____________________.

Accepted Answer

The answer of The practice of lenders to refuse to...

Question 4

Choose the one most appropriate answer for each.
-funds that are presently in the borrower's checking or savings accounts or available from the sale of the borrower's present property

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 5

A borrower does not have the right, under the truth-in-lending laws, to rescind a credit transaction

Accepted Answer

A)  for a consumer loan on personal property. 
B)  for the acquisition of the borrower's principal dwelling. 
C)  both a and b. 
D)  neither a nor b. 
A)  for a consumer loan on personal property. 
B)  for the acquisition of the borrower's principal dwelling. 
C)  both a and b. 
D)  neither a nor b.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Borrower's regular income would be most important to a lender qualifying an individual for a residential mortgage loan.

Accepted Answer

A) True 
 B)False

Question 8

A residential lender would prefer the lowest possible payment to income ratio.

Accepted Answer

A) True 
 B)False

Question 9

The _________________________ is the total dollar amount the credit will cost the borrower over the life of the loan.

Accepted Answer

The answer of The _________________________ is the total dollar amount...

Question 10

Truth in lending laws require a lender to provide figures for loan amount, interest rates, and annual percentage rate.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following ratios of monthly payment to monthly income would be preferred by a residential lender?

Accepted Answer

A)  25% 
B)  55% 
C)  65% 
D)  75% 
A)  25% 
B)  55% 
C)  65% 
D)  75%

Question 12

Which of the following would be most important to a lender qualifying an individual for a residential mortgage loan?

Accepted Answer

A)  Borrower's regular income 
B)  Overtime income 
C)  Spouse's part-time income 
D)  Pest and dry rot report 
A)  Borrower's regular income 
B)  Overtime income 
C)  Spouse's part-time income 
D)  Pest and dry rot report

Question 13

If an applicant is purchasing a home as a(n)____________________, the lender will be more cautious because, during periods of high vacancy, the property may not generate enough income.

Accepted Answer

The answer of If an applicant is purchasing a home...

Question 14

When advertising, a lender must disclose the

Accepted Answer

A)  cost of appraisal. 
B)  annual percentage rate. 
C)  closing costs. 
D)  cost of the title search and title insurance. 
A)  cost of appraisal. 
B)  annual percentage rate. 
C)  closing costs. 
D)  cost of the title search and title insurance.

Question 15

Choose the one most appropriate answer for each.
-popularly known as the Truth-in-Lending Act

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 16

Choose the one most appropriate answer for each.
-a report reflecting the creditworthiness of a borrower by showing past credit history

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 17

Which of the following do lenders of home loans consider the most important in their analysis of a loan application?

Accepted Answer

A)  Age, sex, race, and marital status of the borrower 
B)  Location and age of the collateral 
C)  Job stability, income adequacy and credit rating of the borrower 
D)  Ethnic and business balance of collateral's neighborhood 
A)  Age, sex, race, and marital status of the borrower 
B)  Location and age of the collateral 
C)  Job stability, income adequacy and credit rating of the borrower 
D)  Ethnic and business balance of collateral's neighborhood

Question 18

Choose the one most appropriate answer for each.
-the total amount the credit will cost over the life of the loan

Accepted Answer

A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term 
A) APR 
B) cash value 
C) credit report 
D) credit scoring 
E) equity
F)exempt transactions
G)Fair Credit Reporting Act
H)Federal Consumer Credit Protection Act
I)finance charge
J)illiquid assets
K)liquid assets
L)loan-to-value ratio
M)redlining
N)Regulation Z
O)right to rescission
P)settlement funds
Q)subprime loans
R)Truth-in-Lending Act
S)TILSRA
T)trigger term

Question 19

The borrower's assets that are in cash or readily convertible into cash are called ____________________ assets.

Accepted Answer

The answer of The borrower's assets that are in cash...

Question 20

The right of individuals to inspect their file at a credit bureau is found in the

Accepted Answer

A)  Truth-in-Lending Act. 
B)  Fair Credit Reporting Act. 
C)  Regulation Z. 
D)  Federal Consumer Credit Protection Act. 
A)  Truth-in-Lending Act. 
B)  Fair Credit Reporting Act. 
C)  Regulation Z. 
D)  Federal Consumer Credit Protection Act.

Exam 11: The Loan and the Consumer

"Buy for less than $600 a month" contains a trigger term under Regulation Z and requires further disclosure.

When considering loan applications, lenders like to see

The practice of lenders to refuse to make loans in certain areas regardless of the quality of the structure or the borrower's ability to repay the loan is called ____________________.

Choose the one most appropriate answer for each. -funds that are presently in the borrower's checking or savings accounts or available from the sale of the borrower's present property

A borrower does not have the right, under the truth-in-lending laws, to rescind a credit transaction

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

Borrower's regular income would be most important to a lender qualifying an individual for a residential mortgage loan.

A residential lender would prefer the lowest possible payment to income ratio.

The _________________________ is the total dollar amount the credit will cost the borrower over the life of the loan.

Truth in lending laws require a lender to provide figures for loan amount, interest rates, and annual percentage rate.

Which of the following ratios of monthly payment to monthly income would be preferred by a residential lender?

Which of the following would be most important to a lender qualifying an individual for a residential mortgage loan?

If an applicant is purchasing a home as a(n)____________________, the lender will be more cautious because, during periods of high vacancy, the property may not generate enough income.

When advertising, a lender must disclose the

Choose the one most appropriate answer for each. -popularly known as the Truth-in-Lending Act

Choose the one most appropriate answer for each. -a report reflecting the creditworthiness of a borrower by showing past credit history

Which of the following do lenders of home loans consider the most important in their analysis of a loan application?

Choose the one most appropriate answer for each. -the total amount the credit will cost over the life of the loan

The borrower's assets that are in cash or readily convertible into cash are called ____________________ assets.

The right of individuals to inspect their file at a credit bureau is found in the

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