A Texas home loan carries an interest rate of 12.4% a year and the lender issues the usual federal disclosures. What additional state counseling-related disclosures does the rate trigger?
Correct Answer
B) More is owed: a counseling statement and a list of HUD agencies
For a home loan at 12 percent or greater a year, the lender must also provide a statement about the value of mortgage counseling, a list of the nearest HUD-approved housing counseling agencies, a list of other resources including toll-free numbers and online sources, and any other finance commission disclosures, delivered with the good faith estimate or three business days after application. Other choices: the federal package does not include these; 15% is not the trigger; and the duty does not wait for the borrower to ask. Source: Tex. Fin. Code sec. 343.102(a)
Why This Is the Correct Answer
For a home loan at 12 percent or greater a year, the lender must also provide a statement about the value of mortgage counseling, a list of the nearest HUD-approved housing counseling agencies, a list of other resources including toll-free numbers and online sources, and any other finance commission disclosures, delivered with the good faith estimate or three business days after application. Other choices: the federal package does not include these; 15% is not the trigger; and the duty does not wait for the borrower to ask. Source: Tex. Fin. Code sec. 343.102(a)
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