Truth in Lending Act (TILA) Worksheet

What does TILA stand for?

• Truth in Lending Act

• Total Interest Loan Agreement

• Tax Incentive Lending Act

• Trust in Loan Act

TILA disclosures are required when credit is offered, but before the transaction, and when credit is advertised to potential customers.

• True

• False

How many installments must there be for TILA to apply?

• 2

• 3

• 4

• More than 4

How long must a Loan Estimate be kept according to TILA disclosures?

• 1 year

• 2 years

• 3 years

• 5 years

Fill in the blank: The Closing Disclosure must be kept for ____ years according to TILA disclosures.

• 5

• 2

• 3

• 7

Which booklet must be provided for ARM loans under TILA disclosures?

• Consumer Handbook on Adjustable Rate Mortgages (CHARM booklet)

• Home Equity Loan Guide

• Mortgage Insurance Booklet

• Loan Originator Handbook

When must the notice of right to rescind be provided for Home Equity Loans, HELOC, and Refinances of Principal Residence?

• Within 1 day

• Within 3 days

• Within 7 days

• Within 20 days

Everyone on the loan gets 2 copies of the notice of right to rescind, but only 1 borrower can pull out.

• True

• False

What is the total cost of financing in percentage terms as a relationship of the total finance charges to the total amount financed called?

• Annual Percentage Rate (APR)

• Loan Estimate

• Closing Disclosure

• Principal Rate

Fill in the blank: APR must be disclosed in ___________.

• advertising

• personal letters

• private conversations

• handwritten notes