It has to be a true mortgage broker company B. the creditor must ask all credit applicants for a statement of marital status. In 1980, open-end credit generally consisted of credit card accounts with small credit lines that limited the exposure an institution had to an individual borrower. No credit may be taken under the act for the payments made for such benefits. Finance Charge Calculation (226.4) b. The following points concern those commercial, closed-end mortgage loans or open-end lines of credit that are not covered by HMDA 6: 1. The best answer is A. Revolving Open-end Credit. – A high‑cost home loan shall be subject to the following limitations: (1) No call provision. (d) For purposes of Sec. The property secured by the loan will be offered up for sheriff's sale during the waiting period. Ann. ; You have a right to know what information your credit reports contain. Ag exception. 215.4 of this part, an extension of credit by a member bank is considered to have been made at the time the bank enters into a binding commitment to make the extension of credit. First, the good news. Open-End Loans. – No high‑cost home loan may contain a provision which … In this example, the transaction is an open-end line of credit under Regulation C, provided the other requirements of § 1003.2(o) are met. This type of consumer credit is found with most credit cards. Covered loan means a consumer credit transaction secured by property located within this state that is considered a mortgage under section 152 of the federal "Home Ownership and Equity Protection Act of 1994", 15 U.S.C. c. Reverse mortgage transactions. What Is the Purpose of the Fair Credit Billing Act? Which of the following would be considered an acceptable reason to waive the waiting period. In actuality, a credit card is simply a loan from a lending institution (the issuing company) that pays the merchant when it receives a loan document (a credit card receipt) from the merchant. rated based on the number of recently opened accounts and the number of recent credit inquiries (10%) Types of credit used. C. Tax deductions and tax credits D. Speculation and aggressive gains . Credit cards and open-end lines of credit are examples. (e) A participation without recourse is considered to be an extension of credit by the participating bank, not by the originating bank. Unless you pay off the debt in full each month, you will often have to pay a high-rate of interest or other kinds of finance charges for the use of credit. number of various types of accounts (credit cards, loans, mortgages, etc.) §1638. Regardless of the purpose for which a credit card is to be used, including business, commercial, or agricultural use, no credit card shall be issued to any person except: (1) In response to an oral or written request or application for the card; or (2) As a renewal of, or substitute for, an accepted credit card. By request, you may obtain a free copy from each of the three national credit bureaus (Equifax, Experian and TransUnion) every year. The Rule applies to any consumer credit transaction secured by a dwelling, except an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan or ‘‘bridge’’ loan with a term of 12 months or less.5 It appears that the Rule applies to purchase money and refinances, but not modifications of existing mortgages. Thus, Choice A is the best one offered. The change in the nature of these However, a creditor may impose reasonable payment requirements, such as specifying the address to which payments must be sent or that payment be made in U.S. dollars. includes information in the furnisher's possession that the CFPB has determined would likely be materially misleading in evaluating a consumer's creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living, if absent. The law applies to “open end credit accounts.” These include credit cards and revolving charge accounts. You typically use credit cards to make purchases. (see Kan. U.C.C. Credit cards and lines-of-credit are examples of open-end accounts. if the credit is refused, the creditor, on demand, must disclose the reasons for rejection. Lenders incorporate the expected rate of inflation when deciding how much interest to charge. In this kind of credit the lender extends credit for use by the consumer, with an outside limit that depends on the debtor’s credit history and ability to handle the debt repayment. Open-end credit plans (such as home equity lines of credit, or HELOCs); Time-share plans; ... You must consider the following eight underwriting standards when making an ATR determination: 10 . questions concerning plans for children should be asked before sanctioning credit. For example, payment for workmen's compensation insurance under either a compulsory or elective State statute are not considered payments for fringe benefits under the Act. Annual Percentage Rate (APR) (226.22) (Considered accurate if within 1/8 of 1%.) For all open-end credit, a consumer's payment must be credited on the date of receipt as long as it is received before 5 p.m. Transactions other than under an open end credit plan (a) Required disclosures by creditor. 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