Regulation Z: Truth in Lending - TILA

Course Outline:

Regulation Z: Truth in Lending (TILA)

Seat Time: 3hrs 

This course will introduce the learner to Regulation Z, which implements the Truth in Lending Act (TILA). The learner will be provided with a detailed overview of the ways in which TILA affects credit extensions and requires disclosures to be sent to consumers. After completing this program, the learner will understand:

• Distinction between open-end and closed-end credit requirements.
• Definition of "home equity plans."
• Relation of Credit CARD Act and Higher Education Opportunity Act to truth in lending.

Course Topics:

T1. Truth in Lending Act: This topic will introduce the learner to Regulation Z, which implements the Truth in Lending Act (TILA), and will discuss the four key protections that currently exist for higher-priced mortgage loans secured by a consumerÆs principal dwelling.

T2. Coverages and Exemptions: This topic will discuss the requirements that must be met for extensions of credit to be considered, and will provide information on exemptions, mixed-purpose credit, factors to consider, and more.

T3. Finance Charges: This topic will define finance charges and will provide examples, as well as include information on exclusions, such as application fees charged to applicants, charges for actual unanticipated late payments, or charges imposed by a financial institution.

T4. TILA Disclosures: This topic will familiarize the learner with the information that must be included in disclosures, in addition to an explanation of the Mortgage Disclosure Improvement Act and the ways in which it attempts to improve the effectiveness of disclosures.

T5. Open-End Credit Requirements: This topic will discuss specific requirements for open-end credit programs by defining open-end credit as an agreement, describing initial disclosures, and providing information on other types of disclosures.

T6. Closed-End Credit Requirements: This topic will discuss specific requirements for closed-end credit programs by defining closed-end credit as an agreement, describing content of disclosures, and providing information on other types of disclosures, including subsequent and oral.

T7. Home Equity Plans: This topic will clarify what a home equity plan is and will discuss the specific requirements set by the Truth in Lending Act for disclosing information about home equity plans.

T8. Higher-Priced Loans: This topic will discuss consumer protection, define higher-priced mortgages, and describe the four key protections for higher-priced mortgages secured by a consumerÆs principal dwelling.

T9. Credit CARD Act: This topic will acquaint the learner with the Credit CARD Act, which looks to put limits on what the credit card companies can do in regard to charging fees and raising interest rates.

T10. Higher Education Opportunity Act: This topic will discuss the Higher Education Opportunity Act, which establishes rules regarding relationships between higher education institutions and lenders, including conflicts of interest, preferred lender lists, and disclosure of loan terms and conditions.

T11. Ability to Repay Qualified Mortgage: This topic will discuss the final rule amending Regulation Z, including good faith determinations, covered transactions, exemptions, qualifications for higher-priced mortgages, and the points-and-fees cap.

T12. TILA Servicing Requirements: This topic will explore the servicing requirements set forth by the Consumer Financial Protection Bureau (CFPB) concerning initial rate adjustment notices for adjustable-rate mortgages, periodic statements, prompt crediting of mortgage payments, ARM disclosures, and responses to consumer requests.