Where this fits on the exam
| Official syllabus topic | Financing: Federal Lending Laws and Disclosure Requirements |
|---|---|
| Official PSI area | Financing |
| Published weight | 10% of the national portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 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 1A title company pays a real estate licensee $200 for every buyer the licensee refers for a residential closing funded by a federally related mortgage loan. The licensee performs no services for the money. Which federal law most directly addresses this payment?
- A. The Truth in Lending Act
- B. The Equal Credit Opportunity Act
- C. The Real Estate Settlement Procedures Act
- D. The TILA-RESPA Integrated Disclosure rule
Show answer and explanation →
Answer: C. The Real Estate Settlement Procedures Act
RESPA and Regulation X prohibit kickbacks and unearned fees for referring settlement service business on covered mortgage loans. A per-referral payment with no services behind it is the classic example. TRID is plausible because it carries the RESPA name, but it governs the Loan Estimate and Closing Disclosure, not referral payments.
- A. Incorrect. TILA concerns credit terms and cost disclosures. A fee paid solely for settlement referrals is most directly a RESPA issue.
- B. Incorrect. ECOA concerns discrimination in credit decisions. No protected-class discrimination is described in this referral payment.
- C. Correct. For a covered mortgage settlement, payment for referring business without services implicates RESPA's anti-kickback rules.
- D. Incorrect. TRID supplies integrated mortgage disclosure forms. Disclosure on a form would not make a prohibited referral fee permissible.
Question 2A buyer financing a Georgia home receives a Loan Estimate shortly after applying and a Closing Disclosure before the attorney-conducted closing. Which federal requirement produces these two forms?
- A. TRID, the integrated TILA-RESPA disclosure rule
- B. ECOA, through its Regulation B notices
- C. Georgia law, because an attorney conducts the closing
- D. RESPA by itself, as a separate act of Congress
Show answer and explanation →
Answer: A. TRID, the integrated TILA-RESPA disclosure rule
TRID is the CFPB rule that merged earlier TILA and RESPA disclosures into the Loan Estimate and Closing Disclosure for covered mortgage loans. A Georgia attorney closing does not replace these federal forms. Calling TRID a separate statute, or crediting RESPA alone, is the common mix-up: TRID is a rule implementing both laws.
- A. Correct. TRID integrates TILA and RESPA disclosures into the Loan Estimate and Closing Disclosure for covered mortgage loans.
- B. Incorrect. Regulation B implements ECOA, including fair-credit and certain notice requirements. It does not create these two TRID forms.
- C. Incorrect. Georgia's attorney-closing requirement does not create the federal disclosure forms. Both sets of requirements can apply.
- D. Incorrect. The integrated forms implement both TILA and RESPA through the CFPB's rule. Crediting RESPA alone omits that integration.
Question 3A car dealer's finance office offers worse loan terms to applicants of one national origin than to applicants with identical credit profiles. Which statement is correct?
- A. No federal lending law applies, since the loan is not a mortgage
- B. RESPA applies, since it covers all consumer credit pricing
- C. TILA makes the pricing lawful if the APR is disclosed
- D. ECOA applies, since it bars discrimination in any credit
Show answer and explanation →
Answer: D. ECOA applies, since it bars discrimination in any credit
ECOA and Regulation B prohibit discrimination in any aspect of a credit transaction, not only home loans. Treating applicants with the same credit differently because of national origin fits squarely. The plausible error is limiting ECOA to housing credit; disclosing an APR under TILA never cures discriminatory pricing.
- A. Incorrect. ECOA applies to credit beyond mortgages, including vehicle financing. National origin cannot determine worse terms for otherwise comparable applicants.
- B. Incorrect. RESPA addresses covered real estate settlement transactions. It is not the law governing all car-loan pricing.
- C. Incorrect. Accurate APR disclosure does not excuse discriminatory terms. TILA disclosure and ECOA nondiscrimination are separate obligations.
- D. Correct. ECOA protects applicants in credit transactions, including car loans. National-origin discrimination is prohibited even outside real estate.
Ready to move on?
You have this distinction down when all of these are 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 key fact.
- Explain the rule or fact that makes each distractor 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. Next, Void Versus Voidable Versus Unenforceable moves from the federal rules around a loan to the contract itself, asking whether an agreement never had legal effect, can be undone by a protected party, or is blocked by a defense.
Return to the complete exam-concept library or the Financing hub.