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NCCO EXAM 3 QUESTION S WITH
DETAILED VERIFIED AN SWERS (100%
CORRECT ANSW ERS) /ALREADY
GRADED A+
Question :What types of credit products are covered under
Regulation Z?
Correct answer:Loans secured by real property,
loans secured by personal property used as a member's principal dwelling or, Private education loans.
Question :What types of credit products are not covered under
Regulation Z?
Correct answer:Business loans, for commercial or agricultural
purposes Loan to non-natural persons Credit over $69,500 (limit is adjusted annually)
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Question :What is open ended credit? What is close ended
credit?Correct answer:Open ended credit: Repeated transactions Finance charge is imposed on outstanding unpaid balance Credit replenished as balance is repaid
Close ended credit:
all other credit plans
Question :What is a dwelling?
Correct answer:A residential structure that contains 1-4 units,
whether or not that structure is attached to real property.Includes individual condominium units, cooperative units, mobile home and trailer, if it is used as a residence.
Question :Are there differences in account opening
disclosures for HELOCs and other open-end credit? When must the disclosure be provided?Correct answer:For HELOCs, Reg Z requires:
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-Application disclosures
Account opening disclosures
Periodic statements *** CFPB Booklet is required to be given to the member
Disclosures must be provided to member prior to the first transaction.
Question :What disclosures are required when advertising a
promotional APR?
Correct answer:If promotional rate is related to opening of a
new account, the CU must refer to the rate as "introductory", must be listed immediately next to each listing of the promotional rate.
Disclosures should also define in a prominent location (close to stated APR) when the promotional rate will end and the APR that will apply after the end of the promotional period.
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Question :What are the change-in-terms requirements for
open-ended credit? Are the rules the same for all open ended products? If not, what are the differences?
Correct answer:Must provide a 45-day notice of change in
terms whenever there is a change to a term required to be in the account opening disclosures.
For HELOC's, changes to terms requires the CU to issue a notice 15 days prior to the effective date of the change. This is an example of a unilateral term change.
Question :What are the periodic statement requirements for
the different open-end credit products? What are the timing requirements for providing each statement?
Correct answer:Must group interest and fee charges separately
from other transactions and fee and interest charges must be totaled for the period and year-to-date in a tabular format.
