Question: Is No Annual Fee A Triggering Term?

Which item will show as a credit to the buyer on a closing statement?

Tells both the buyer and the seller, as of the day of the closing, how much money the seller will “take from” closing; how much the buyer has to “bring to” closing.

All Prorations & Prepayments are double line entries.

A Debit to the Seller is a Credit to the Buyer, & vice versa..

What does Tila mean?

Truth in Lending ActThe 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.

What are Reg Z trigger terms?

Answer: “Triggering term” is language used in Regulation Z – Truth in Lending to describe advertisement of terms that require additional disclosures. The triggers for additional disclosures are different between open-end and closed-end consumer credit.

Is interest rate a trigger term?

For closed end loans 1026.24 (d) lists trigger terms as down payment, number of payments/period of repayment, amount of payment, amount of finance charge. Rates are not a finance charge.

What is Regulation Z?

Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.

What is the best description of a trigger term?

A trigger term is a term that ” triggers” a higher price on a print advertisement for a credit product placed in a newspaper or magazine. C. A trigger term is a term, that, when used in an advertisement, requires certain additional disclosures.

What is not permitted under Reg Z?

Coverage Considerations under Regulation Z Regulation Z does not apply, except for the rules of issuance of and unauthorized use liability for credit cards. (Exempt credit includes loans with a business or agricultural purpose, and certain student loans.

What is Regulation Z in banking?

Regulation Z is the Federal Reserve Board regulation that implements the Truth in Lending Act of 1968. The legislation is designed to protect consumers against misleading lending practices.

Which is a triggering term?

A triggering term is a word or phrase that, when used in advertising literature, requires the presentation of the terms of a credit agreement. Triggering terms are intended to help consumers compare credit and lease offers on a fair and equal basis.

Is no closing costs a trigger term?

The dollar amount of the finance charge or any portion of it includes statements such as: A. “$500 total cost of credit.” … Statements of the annual percentage rate or statements that there is no particular charge for credit (such as “no closing costs”) are not triggering terms under this paragraph.

Why would a mortgagee beneficiary have an appraisal on the property?

Why would a mortgagee (beneficiary) have an appraisal on the property? … Lenders generally insist on this independent assessment to make sure the value of the property is at least sufficient to pay off the loan amount in case of default.

How long must a creditor retain the closing disclosure?

five yearsAmong other requirements in the rule, creditors must retain copies of the new Closing Disclosure for five years, and if the creditor sells, transfers, or otherwise disposes of its interest in a covered mortgage loan and does not service the mortgage loan, the creditor must provide a copy of the Closing Disclosure to …