Federal Mortgage LawsQuestion 37 of 400
Under Regulation Z, the Home Equity Line of Credit (HELOC) program disclosures and a brochure must generally be provided to the consumer:
a.Only at closing
b.Within 30 days of opening the line
c.At the time an application is provided to the consumer
d.Never; HELOCs are exempt from disclosure
Explanation
For HELOCs, Regulation Z requires that the early disclosures and the 'What You Should Know About Home Equity Lines of Credit' brochure be provided at the time the application is given to the consumer. Providing them only at closing or within 30 days after opening is too late, and HELOCs are not exempt from disclosure requirements. Early disclosure allows informed shopping.
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