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Question 1 of 5

1. Question
A mortgage company is reviewing its compliance training materials for Truth-in-Lending Act requirements. A new loan officer asks which federal regulatory agency oversees Truth-in-Lending compliance.

Which agency oversees the Truth-in-Lending Act?
- A) Consumer Financial Protection Bureau (CFPB)
- B) Federal Housing Administration (FHA)
- C) Department of Veterans Affairs (VA)
- D) United States Department of Agriculture (USDA)
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Question 2 of 5

2. Question
A borrower applies for credit to finance a property that will be used primarily as a personal residence. The loan officer must determine whether Truth-in-Lending requirements apply.

Which statement best describes when Truth-in-Lending requirements apply?
- A) They apply to all credit transactions, including business and commercial loans
- B) They apply to consumer credit extended by a creditor primarily for personal, family, or household purposes, including a residence the owner intends to occupy for more than 14 days during the coming year
- C) They apply only to loans secured by vacant land or commercial buildings
- D) They apply only when the borrower is purchasing a property for resale
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Question 3 of 5

3. Question
An applicant requests credit to acquire and maintain a rental property that the owner will occupy during the coming year. The property contains more than two housing units. The lender must determine whether Truth-in-Lending requirements apply.

How is this loan generally treated under the Truth-in-Lending rules described on this page?
- A) It is always treated as consumer credit because the owner will occupy one unit
- B) It is covered by Truth-in-Lending because all rental property loans are covered
- C) It is considered a business-purpose loan if it contains more than two housing units and is exempt from Truth-in-Lending
- D) It is exempt only if the property contains exactly two housing units
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Question 4 of 5

4. Question
A borrower applies for a mortgage loan covered by RESPA. The loan officer prepares the required early disclosures and confirms that the Truth-in-Lending Disclosure is now incorporated into the Loan Estimate form.

When must this disclosure generally be given for RESPA-related loans?
- A) Within 10 business days after closing
- B) Only after the borrower locks the interest rate
- C) At any time before the first monthly payment is due
- D) Within three business days of application for RESPA-related loans
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Question 5 of 5

5. Question
A compliance manager is updating the company’s document retention schedule for mortgage disclosures. The manager needs to confirm how long Truth-in-Lending documents must be retained.

What is the record retention requirement for Truth-in-Lending documents?
- A) 5 years
- B) 90 days
- C) 12 months
- D) 25 months
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