C713 - BUSINESS LAW - UNIT 5
LEARNING CHECKS, QUIZZES AND
SAMPLE QUESTIONS WITH 100%
CORRECT VERIFIED ANSWERS
GRADED A+ 2026
If a credit union is advertising a promotional APR on an open-end credit product, the
credit union must also include information about when the promotional rate ends and
the APR that will apply after the end of the promotional period.
a. True, and if the promotional rate is at the opening of a new account the credit union
must use the term "introductory" or "intro" immediately in front of the promotional APR.
b. True, but this requirement only applies to home equity lines of credit (HELOCs).
c. False, this requirement only applies if the credit union uses the term "fixed" in the
advertisement.
d. False, the credit union only needs to include this information on internet
advertisements. - answer-a. True, and if the promotional rate is at the opening of a new
account the credit union must use the term "introductory" or "intro" immediately in front
of the promotional APR.
Lenders are required to provide a homeownership counseling disclosure, listing ten
HUD approved counseling organizations in order of proximity to the borrower's current
zip code, to applicants for which of the following types of federally-related mortgage
loans? Choose the best answer.
a. Purchase-money mortgages
b. Refinances
c. Closed-end home equity loans
d. Home equity lines of credit (HELOCs)
e. All of the above - answer-e. All of the above
,A member applied for a $3000 personal line of credit. The credit union wants to
counteroffer the member with a $1500 line of credit. To meet its Regulation B
notification requirements, the credit union:
a. Must send the member an adverse action notice, which cannot be combined with the
counteroffer.
b. May send the member an adverse action notice combined with the counteroffer, but
if the member does not accept or does not respond to the counteroffer, the credit union
must send another adverse action notice.
c. May send the member an adverse action notice combined with the counteroffer, and
if the member does not accept or does not respond to the counteroffer, the credit union
does not need to send another adverse action notice.
d. Must send the member an adverse action notice with all counteroffers. - answer-c.
May send the member an adverse action notice combined with the counteroffer, and if
the member does not accept or does not respond to the counteroffer, the credit union
does not need to send another adverse action notice.
A member has submitted a direct dispute to the credit union regarding her performance
on a credit card account. Which of the following accurately describes the credit union's
obligations?
a. The credit union does not have any obligations regarding the direct dispute because
disputes relating to a member's performance on an account are not covered by the rule.
b. The credit union must complete its investigation of the dispute within 10 days and
rep01t the result's of the investigation to the member.
c. The credit union must complete its investigation of the dispute within 30 days, report
the results of the investigation to the member and notify consumer repotting agencies if
the investigation reveals information reported was inaccurate.
d. The credit union must complete its investigation of the dispute within 30 days and
report the results of the investigation to the member. Notice to the consumer reporting
agencies - answer-c. The credit union must complete its investigation of the dispute
within 30 days, report the results of the investigation to the member and notify
consumer reporting agencies if the investigation reveals information reported was
inaccurate.
, Which statements are true under the Regulation Z qualification and screening
requirements for mortgage loan originators? Choose the best answer.
a. The credit union can obtain a criminal background check on an individual loan
originator by reviewing any criminal background check it receives upon compliance with
the registration requirement in the NMLSR.
b. An individual loan originator may begin originating loans as long as the loan originator
organization has begun the qualifications and screening process.
c. The credit union may obtain information on past administrative, civil, or criminal
findings from the individual loan originator.
d. a and c only
e. All of the above - answer-d. a and c only
Regulation Z requires a credit union to provide a member with an escrow cancellation
notice, when must this notice be provided?
a. The notice must be delivered 30 days before the escrow account is cancelled.
b. The notice must be sent at least 3 days before the escrow account is cancelled.
c. If the member requests the cancellation, the notice must be provided no later than 3
business days before the escrow account is closed. If the credit union initiates the
cancellation, the notice must be provided at least 30 business days before the escrow
account is closed.
d. The notice must be provided at least 30 business days before the escrow account is
closed. - answer-c. If the member requests the cancellation, the notice must be
provided no later than 3 business days before the escrow account is closed. If the credit
union initiates the cancellation, the notice must be provided at least 30 business days
before the escrow account is closed.
A member can cancel a private education loan even after the credit union sends final
disclosures and the member accepts the loan.
a. True, a member can cancel the loan until midnight on the third business day after
receiving the final disclosures.
LEARNING CHECKS, QUIZZES AND
SAMPLE QUESTIONS WITH 100%
CORRECT VERIFIED ANSWERS
GRADED A+ 2026
If a credit union is advertising a promotional APR on an open-end credit product, the
credit union must also include information about when the promotional rate ends and
the APR that will apply after the end of the promotional period.
a. True, and if the promotional rate is at the opening of a new account the credit union
must use the term "introductory" or "intro" immediately in front of the promotional APR.
b. True, but this requirement only applies to home equity lines of credit (HELOCs).
c. False, this requirement only applies if the credit union uses the term "fixed" in the
advertisement.
d. False, the credit union only needs to include this information on internet
advertisements. - answer-a. True, and if the promotional rate is at the opening of a new
account the credit union must use the term "introductory" or "intro" immediately in front
of the promotional APR.
Lenders are required to provide a homeownership counseling disclosure, listing ten
HUD approved counseling organizations in order of proximity to the borrower's current
zip code, to applicants for which of the following types of federally-related mortgage
loans? Choose the best answer.
a. Purchase-money mortgages
b. Refinances
c. Closed-end home equity loans
d. Home equity lines of credit (HELOCs)
e. All of the above - answer-e. All of the above
,A member applied for a $3000 personal line of credit. The credit union wants to
counteroffer the member with a $1500 line of credit. To meet its Regulation B
notification requirements, the credit union:
a. Must send the member an adverse action notice, which cannot be combined with the
counteroffer.
b. May send the member an adverse action notice combined with the counteroffer, but
if the member does not accept or does not respond to the counteroffer, the credit union
must send another adverse action notice.
c. May send the member an adverse action notice combined with the counteroffer, and
if the member does not accept or does not respond to the counteroffer, the credit union
does not need to send another adverse action notice.
d. Must send the member an adverse action notice with all counteroffers. - answer-c.
May send the member an adverse action notice combined with the counteroffer, and if
the member does not accept or does not respond to the counteroffer, the credit union
does not need to send another adverse action notice.
A member has submitted a direct dispute to the credit union regarding her performance
on a credit card account. Which of the following accurately describes the credit union's
obligations?
a. The credit union does not have any obligations regarding the direct dispute because
disputes relating to a member's performance on an account are not covered by the rule.
b. The credit union must complete its investigation of the dispute within 10 days and
rep01t the result's of the investigation to the member.
c. The credit union must complete its investigation of the dispute within 30 days, report
the results of the investigation to the member and notify consumer repotting agencies if
the investigation reveals information reported was inaccurate.
d. The credit union must complete its investigation of the dispute within 30 days and
report the results of the investigation to the member. Notice to the consumer reporting
agencies - answer-c. The credit union must complete its investigation of the dispute
within 30 days, report the results of the investigation to the member and notify
consumer reporting agencies if the investigation reveals information reported was
inaccurate.
, Which statements are true under the Regulation Z qualification and screening
requirements for mortgage loan originators? Choose the best answer.
a. The credit union can obtain a criminal background check on an individual loan
originator by reviewing any criminal background check it receives upon compliance with
the registration requirement in the NMLSR.
b. An individual loan originator may begin originating loans as long as the loan originator
organization has begun the qualifications and screening process.
c. The credit union may obtain information on past administrative, civil, or criminal
findings from the individual loan originator.
d. a and c only
e. All of the above - answer-d. a and c only
Regulation Z requires a credit union to provide a member with an escrow cancellation
notice, when must this notice be provided?
a. The notice must be delivered 30 days before the escrow account is cancelled.
b. The notice must be sent at least 3 days before the escrow account is cancelled.
c. If the member requests the cancellation, the notice must be provided no later than 3
business days before the escrow account is closed. If the credit union initiates the
cancellation, the notice must be provided at least 30 business days before the escrow
account is closed.
d. The notice must be provided at least 30 business days before the escrow account is
closed. - answer-c. If the member requests the cancellation, the notice must be
provided no later than 3 business days before the escrow account is closed. If the credit
union initiates the cancellation, the notice must be provided at least 30 business days
before the escrow account is closed.
A member can cancel a private education loan even after the credit union sends final
disclosures and the member accepts the loan.
a. True, a member can cancel the loan until midnight on the third business day after
receiving the final disclosures.
