Which of the following comes under the heading of nontraditional mortgage product risks?
Answer : AB
In Guidance on Nontraditional Mortgage Product Risks, if the institution has a concentration in a nontraditional mortgage portfolio, the institution should:
Answer : D
If the institution offers both full and reduced documentation loans and there is a pricing premium attached to the reduced documentation loan, the consumer should:
Answer : A
Institutions that offer nontraditional mortgage products should make sure they comply with the following, as applicable, EXCEPT:
Answer : C
Underwriting standards in Subprime Mortgage Lending include:
Answer : A
Below mentioned is the necessary information that should be included in the ___________. Risk of payment shock""potential payment increases; how the new payment will be calculated when the introductory rate expires Ramifications of prepayment penalties""how they will be calculated, when they will be imposed
Ramifications of balloon payments Ramifications of the lack of escrowing for taxes and insurance""who is responsible for paying taxes and insurance and the fact that their costs may be substantial Cost of reduced documentation loans""whether there is a pricing premium required
Answer : A
Supervisory review should also be the part of Subprime Mortgage Lending. It should review:
Answer : AC
The act limited balloon payments in consumer leases and enabled consumers to compare lease terms with credit terms where appropriate. The act was implemented by Regulation M (Consumer Leasing). It requires disclosures to consumers before consummation of the lease agreement. This act is:
Answer : A
Content of segregated disclosures in Consumer Leasing Act include all of the following
EXCEPT:
Answer : D
In a motor vehicle lease, a mathematical progression showing how the periodic payment is derived, containing the following information:
Answer : D
Which one of the following should be included in an early termination notice in case of the termination from consumer leasing agreement?
Answer : ABD
In Consumer Leasing Act Content of non-segregated disclosures may be made separately or as part of another document (such as the lease agreement); however, other information cannot be stated, used, or placed so as to mislead or confuse the consumer. Other disclosures include all of the following EXCEPT:
Answer : D
Under Renegotiations, extensions, and assumptions-12 CFR 213.5; any lease that is renegotiated or extended by longer than six months is considered to be a new lease, subject to new disclosure requirements, except when:
Answer : AB
In Advertising-12 CFR 213.7, if a percentage rate is used in an advertisement, it cannot be more prominent than any other disclosure, EXCEPT:
Answer : A
Under Consumer Leasing Act Enforcement-15 USC 1667d section FIRREA penalties include:
Answer : AB
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