1 / 10

Real Estate Principles Tenth Edition

Real Estate Principles Tenth Edition. Real Estate: An Introduction to the Profession Tenth Edition. Chapter 12 The Loan and the Consumer. _________________________________. Regulation Z. Truth-in-Lending Act Requires lender to show the borrower the cost of the credit.

mariatran
Download Presentation

Real Estate Principles Tenth Edition

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Real Estate PrinciplesTenthEdition Real Estate: An Introduction to the Profession Tenth Edition

  2. Chapter 12The Loan and the Consumer _________________________________

  3. Regulation Z • Truth-in-Lending Act • Requires lender to show the borrower the cost of the credit. • Requirements include: • Amount financed • Finance charge • Annual percentage rate • Total payments

  4. APR • Annual percentage ratecombines the interest rate with the other costs of the loan into a single figure that shows the true annual cost of the loan.

  5. Right to Rescission • Borrower’s right to cancel a credit transaction. • Three business days after signing to back out. • Includes Saturdays. • Does not apply to credit used for the acquisition or initial construction of your principal dwelling.

  6. Triggering Items and Disclosures Mention these Triggers disclosure • Down payment • Any payment • Number of payments • Period of payments • Amount of any finance charge, or statement: no charge for credit • Cash price or the amount of the loan • Down payment (or none) • Number, amount, frequency of payments • Annual percentage rate (APR) • Deferred payment price or total payments

  7. Loan Process Lenders Qualify: • Borrower • Property • Title

  8. Redlining • Refusing to make loans in certain areas. $ No Loans! $ $

  9. Credit Report • Provides lender with independent means of checking borrower’s credit history. • Fair Credit Reporting Act – consumer right to their file at credit bureau. • Credit Scoring – method used today to evaluate credit risk.

  10. APR Credit report Fair credit reporting act Finance charge Liquid asset Redlining Regulation Z Truth-in-Lending act Key terms

More Related