Download presentation
Presentation is loading. Please wait.
1
Chapter 12 The Loan and the Consumer
_________________________________
2
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
3
APR Annual percentage rate combines the interest rate with the other costs of the loan into a single figure that shows the true annual cost of the loan.
4
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.
5
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
6
Loan Process Lenders Qualify: Borrower Property Title
7
Redlining Refusing to make loans in certain areas. No Loans! $ $ $
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.