What is a trigger term under Regulation Z?

Asked by: Alverta Kunde  |  Last update: April 16, 2025
Score: 4.5/5 (71 votes)

The triggering terms include charges imposed under a non-home secured credit plan such as finance charges, late fees, over-the-limit fees, returned item fees, fees for obtaining a cash advance, fees to obtain additional or replacement cards, expedited card delivery fees, application and membership fees, annual and ...

What is a trigger term in regulation Z?

Reg Z trigger terms: The amount or percentage of any down payment (e.g., $1,000 down), The number of payments or period of repayment (e.g., 60 months financing), The amount of any payment (e.g., $400 per month), or. The amount of any finance charge.

What would be considered a trigger item under Regulation Z?

Phrases or figures used in advertising that will "trigger" other Regulation Z disclosures. The following are trigger terms: the amount or percentage of any down payment, the payment period, the monthly payment, and the amount of the finance charge.

What are examples of triggering terms?

Examples of Triggering Terms
  • The amount of a down payment expressed as a percentage or a dollar amount (example: "5% down" or "80% financing")
  • The amount of any payment expressed as a percentage or a dollar amount (example: "$15 per month" or "monthly payments of under $100")

Which of the following is not a trigger term under regulation Z?

Final answer: The only term that is not a 'trigger term' according to Regulation Z is the APR. Trigger terms in Regulation Z are those that could potentially cause misunderstanding about the cost of credit, including downpayment amount, number of payments or repayment period, and finance charge amount.

TILA Trigger Terms in Advertising (Module 2) | NMLS SAFE MLO Exam Study Series and Test Prep

43 related questions found

Which of the following qualifies as a triggering detail per regulation Z?

Final answer: Under Regulation Z, 'B) Low monthly payments' and 'D) Only $10,000 down' are considered trigger items because they detail specific terms of the loan, which requires additional disclosures such as APR and terms of repayment.

Which of the following is not a trigger type?

Performance is not a valid trigger type in Automation Anywhere.

Which of the following is considered a triggering term except?

Final answer: A 'triggering term' in advertising refers to specific financial terms which necessitate additional disclosures under specific laws. All examples provided, except 'mortgage is assumable', qualify as 'triggering terms' as they provide specific financial figures requiring further information.

What do you have to disclose if a triggering term exists in a mortgage?

For example, if a lender uses one or more of the triggering terms listed above in an advertisement for a mortgage, the ad must also include: The amount or percentage of the down payment. The full terms of the repayment over the loan's term, including any required balloon payment.

What would trigger a change of terms notice under reg. Z?

Whenever the creditor changes the consumer's billing cycle, it must give a change-in-terms notice if the change either affects any of the terms required to be disclosed under § 1026.6(a) or increases the minimum payment, unless an exception under § 1026.9(c)(1)(ii) applies; for example, the creditor must give advance ...

What are examples of reg.z violations?

TILA and Regulation Z: Top 10 Material Violations
  • Failure to treat loan fees, credit report fees, document prep fees, and other fees as prepaid finance charges.
  • Failure to calculate the amount financed properly.
  • Failing to calculate the APR based on the underlying legal obligation.
  • Ambiguity regarding due dates.

What is exempt from Regulation Z?

Creditors with assets of less than $2.336 billion (including assets of certain affiliates) on December 31, 2021, are exempt from the requirement to establish escrow accounts for higher-priced mortgage loans in 2022 if other provisions of Regulation Z are also met.

Which of the following is a triggering term?

Share. Definition: used in advertising, include the following – the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges.

What is prohibited by Regulation Z?

Regulation Z prohibits practices in which mortgage brokers and loan originators may receive compensation for referrals or "steering." Buyers typically connect with a real estate agent, who refers them to a specific mortgage lender. The agent receives no compensation for this referral.

Is assumable mortgage a triggering term?

In mortgage advertising, triggering terms influence consumer decisions by indicating specific financing details. The term 'Assumable Mortgage' does not provide specific conditions like the others do. Hence, it is not considered a triggering term compared to the others in the list.

What are examples of trigger terms?

The triggering terms are:
  • The amount of the down payment, expressed either as a percentage or as a dollar amount. ...
  • The amount of any payment expressed either as a percentage or as a dollar amount. ...
  • The number of payments. ...
  • The period of repayment (the total time required to repay). ...
  • The amount of any finance charge.

What is not a trigger term under TILA and regulation Z?

Finance charge amount: Mentioning the finance charge amount includes stating the dollar amount of the finance charge or any portion of it. However, disclosing the APR or stating there is no particular charge for credit (such as no closing costs) is not a triggering term.

Which of the following is an example of a triggering event?

Triggering events include job loss, retirement, or death, and are typical for many types of contracts. These triggers help to prevent, or ensure, that in the case of a catastrophic change, the terms of an original contract may also change.

What is trigger and its example?

The trigger is mostly used for maintaining the integrity of the information on the database. For example, when a new record (representing a new worker) is added to the employees table, new records should also be created in the tables of the taxes, vacations and salaries.

What is considered triggering?

A trigger is a stimulus that elicits a reaction. In the context of mental illness, "trigger" is often used to mean something that brings on or worsens symptoms. This often happens to people with a history of trauma or who are recovering from mental illness, self-harm, addiction, and/or eating disorders.

What is trigger example exceptions?

A trigger exception (also known as a "blocking trigger") is a kind of trigger that can be used to block another trigger's ability to fire under certain conditions. For example, if a tag has a trigger to fire on all pages and a trigger exception that is set to "Page URL equals thankyou.

Which is not allowed in a trigger?

DDL statements are not allowed in the body of a trigger. Also, no transaction control statements are allowed in a trigger. ROLLBACK , COMMIT , and SAVEPOINT cannot be used. For system triggers, { CREATE / ALTER / DROP } TABLE statements and ALTER ...

What is a trigger and what is not?

A trigger is a person, place, thing, or situation that elicits an intense or unexpected emotional response or causes an individual to relive a past trauma. Any sensory stimulus can be a potential trigger. Triggers are unique from threats.

Which are 3 basic parts of a trigger?

A trigger has three basic parts:
  • A triggering event or statement.
  • A trigger restriction.
  • A trigger action.