A California lending compliance officer is reviewing the Holden Act requirements. The Holden Act applies to all of the following EXCEPT:
Correct Answer
A) Private individuals making occasional seller-financed loans
The Holden Act applies to financial institutions engaged in the business of real estate lending, including banks, savings institutions, credit unions, and mortgage companies. Private individuals making occasional seller-financed loans are generally not covered as they are not 'financial institutions' under the Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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