What is the exam-ready distinction?
| Roadmap post | 196 of 500 |
|---|---|
| Official syllabus topic | Financing: Federal Lending Laws and Disclosure Requirements |
| Official PSI area | Financing |
| Published weight | 10% of the 100-question national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Content checked through | August 2, 2026 |
The Rule
PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.
Side-by-side comparison
Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.
| Decision dimension | RESPA | TILA | TRID | ECOA |
|---|---|---|---|---|
| Primary focus | Federally related mortgage settlement services, servicing, escrow, and referral restrictions | Cost and terms of consumer credit, including finance charge and APR disclosures | Integrated mortgage disclosures under TILA and RESPA | Nondiscrimination in any aspect of a credit transaction |
| Regulation | Regulation X | Regulation Z | Regulations Z and X implementation | Regulation B |
| Signature exam issue | Kickbacks and unearned settlement-service fees | APR and credit-cost disclosure | Loan Estimate and Closing Disclosure for covered transactions | Protected-basis credit discrimination |
| Coverage caution | Has transaction exemptions | Consumer-credit scope and exemptions matter | Not every loan uses the integrated forms | Applies broadly to credit, not only mortgages |
Decision rule
Georgia-specific distinction
Worked example
Scenario. A lender charges a higher rate because an applicant receives public-assistance income, without a lawful credit-based reason.
Reason it through. The fact concerns discriminatory treatment in a credit transaction, not merely settlement-service paperwork.
Answer. ECOA and Regulation B supply the central federal issue.
Common exam traps
- Calling TRID a separate act of Congress
- Using TILA as the kickback statute
- Limiting ECOA to housing credit
- Assuming every business or construction loan receives the same forms
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Which federal rule integrates the Loan Estimate and Closing Disclosure requirements?
- A. TRID
- B. ECOA
- C. The Fair Housing Act alone
- D. The Sherman Act
Show answer and explanation →
Answer: A. TRID
TRID is correct. RESPA regulates covered mortgage settlement practices, servicing, escrow, and referral compensation. TILA requires standardized consumer-credit cost and term disclosures such as APR. TRID is the integrated TILA-RESPA mortgage disclosure rule using the Loan Estimate and Closing Disclosure for covered loans. ECOA prohibits discrimination in credit transactions. The rejected choices are ECOA; The Fair Housing Act alone; The Sherman Act. Each misses the legal category or controlling fact stated in the rule.
Question 2A lender charges a higher rate because an applicant receives public-assistance income, without a lawful credit-based reason.
- A. RESPA permits the pricing difference because a closing is involved.
- B. ECOA and Regulation B supply the central federal issue.
- C. TRID is the antidiscrimination statute.
- D. TILA makes every difference in rate lawful if disclosed.
Show answer and explanation →
Answer: B. ECOA and Regulation B supply the central federal issue.
The fact concerns discriminatory treatment in a credit transaction, not merely settlement-service paperwork. Therefore, ECOA and Regulation B supply the central federal issue. The other choices fail because they replace those controlling facts with a neighboring concept or an unsupported absolute rule.
Question 3What should a candidate identify first when comparing RESPA Versus TILA Versus TRID Versus ECOA?
- A. The option with the longest definition, without classifying the facts.
- B. A memorized Georgia rule, even when the question asks for a national concept.
- C. Match the problem to settlement services, credit cost, integrated mortgage forms, or discriminatory credit treatment, then check coverage and exemptions.
- D. The answer that sounds most favorable to the buyer, regardless of the document or event.
Show answer and explanation →
Answer: C. Match the problem to settlement services, credit cost, integrated mortgage forms, or discriminatory credit treatment, then check coverage and exemptions.
Match the problem to settlement services, credit cost, integrated mortgage forms, or discriminatory credit treatment, then check coverage and exemptions. That sequence identifies the legal category before the label. Choosing by definition length ignores the facts, importing a Georgia rule can answer the wrong jurisdictional question, and favoring one party substitutes sympathy for classification.
Mastery tracking
Mark this distinction mastered only when every statement is true.
- Define every compared term without using the other term as the definition.
- Rebuild the comparison table from memory.
- State the decision rule and Georgia distinction without notes.
- Solve the worked example after changing one controlling fact.
- Explain why every trap and distractor is tempting but wrong.
- Answer all three original questions correctly in mixed practice on a later day.
Recommended next lesson
Continue with Void Versus Voidable Versus Unenforceable Contracts. Continue to roadmap comparison 197.
Return to the complete exam-concept library or the Financing hub.