Which of the following loans would not be covered by any portion of the Truth in Lending Act?

What loans are not covered under TILA?

The TILA-RESPA rule applies to most closed-end consumer credit transactions secured by real property, but does not apply to: HELOCs; • Reverse mortgages; or • Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land).

Which type of loan would be covered by the Truth in Lending Act?

The provisions of the act apply to most types of consumer credit, including closed-end credit, such as car loans and home mortgages, and open-end credit, such as a credit card or home equity line of credit.

What does the Truth in Lending Act cover?

The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.

Which of the following does not apply to a high cost home loan?

Which of the following does not apply to a high-cost home loan? The Home Ownership and Equity Protection Act, the Truth-in-Lending Act, and 12 C.F.R. 1026.32 (Section 32 of Regulation Z) all pertain to high-cost home loans. … As such, a loan to be used to purchase a rental property would not be covered under the TILA.

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What loans are covered by HMDA?

Thus, a financial institution must collect, record, and report data for dwelling-secured, business-purpose loans and lines of credit that are home improvement loans, home purchase loans, or refinancings if no other exclusion applies.

Are HELOCs covered by RESPA?

Answer: HELOCs are not exempt from RESPA; it is just that specific sections are exempted (GFE, HUD1/1a). … The settlement agent shall use the HUD-1 settlement statement in every settlement involving a federally related mortgage loan in which there is a borrower and a seller.

Which of the following is included in TILA?

TILA now includes the following acts to protect consumers:

Fair Credit Billing Act. Fair Credit and Charge Card Disclosure Act. Home Equity Loan Consumer Protection Act. Home Ownership and Equity Protection Act.

What is TILA respa in real estate?

The government introduced TILA regulations in 1968 to discourage dishonest credit lending practices. TILA protects you from unfair credit and credit card billing practices by requiring that lenders offer you written documentation on your loan well before you must sign to lock in the rate.

What are Truth in Lending disclosures?

A Truth-in-Lending Disclosure Statement provides information about the costs of your credit. … Your Truth-in-Lending form includes information about the cost of your mortgage loan, including your annual percentage rate (APR).

What is the importance of the Truth Lending Act?

The federal law, enacted in 1968, protects you from predatory lending practices and promotes the informed use of consumer credit. TILA requires creditors to disclose finance charges, annual percentage rates and other terms to help consumers understand the cost of credit and to comparison shop for it.

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