A Texas lender charges the maximum allowable fees on a $150,000 home equity loan secured by a homestead. Under Texas Constitution Article XVI, Section 50(a)(6)(E), what is the total fee amount?
Correct Answer
A) $3,000
Fees are capped at 3% of original principal. $150,000 × 0.03 = $4,500.
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RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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.
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Previous Question
A Texas property valued at $525,000 has a first mortgage of $300,000 and a home improvement loan of $50,000. Under the Texas Constitution's 80% LTV cap, how much additional home equity borrowing capacity is available?
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A Texas veteran purchases land through the Veterans Land Board (VLB) program for $180,000. The VLB loan requires a 5% down payment. How much is the veteran's down payment?