NCCCO ACTUAL
EXAM 3 AND EXAM 4
QUESTIONS AND COMPLETE
ANSWERS LATEST UPDATE
2026/2027
GRADED A+ .
,1. What types of credit products are covered under Regulation Z ✓✓ CORRECT ANSWER Loans secured by real property,
loans secured by personal property used as a member's principal dwelling or, Private education loans.
2. What types of credit products are not covered under Regulation Z ✓✓ CORRECT ANSWER Business
loans, for commercial or agricultural purposes Loan to non-natural
persons
Credit over $69,500 (limit is adjusted annually)
3. What is open ended credit? What is close ended credit ✓✓ CORRECT ANSWER Open ended credit: Repeated
transactions
Finance charge is imposed on outstanding unpaid balance Credit replenished as balance is
repaid
Close ended credit:
all other credit plans
4. What is a dwelling ✓✓ CORRECT ANSWER A residential structure that contains 1-4 units, whether or not that structure is attached to real property. Includes
individual condominium units, cooperative units, mobile home and trailer, if it is used as a residence.
5. Are there differences in account opening disclosures for HELOCs and other open-end credit? When must the disclosure be
provided ✓✓ CORRECT ANSWER For HELOCs, Reg Z requires:
-Application disclosures
- Account opening disclosures
- Periodic statements
*** CFPB Booklet is required to be given to the member
Disclosures must be provided to member prior to the first transaction.
6. What disclosures are required when advertising a promotional APR ✓✓ CORRECT ANSWER If promo-tional rate is related to
opening of a new account, the CU must refer to the rate as "introductory", must be listed immediately next to each listing of the promotional rate.
Disclosures should also define in a prominent location (close to stated APR) when the promotional rate will end and the APR that will apply after the end of the promotional
period.
, 7. What are the change-in-terms requirements for open-ended credit? Are the rules the same for all open ended products? If not,
what are the differences?-
: Must provide a 45-day notice of change in terms whenever there is a change to a term required to be in the account
opening disclosures.
For HELOC's, changes to terms requires the CU to issue a notice 15 days prior to the ettective date of the change. This is an example of a unilateral term change.
8. What are the periodic statement requirements for the different open-end credit products? What are the timing requirements
for providing each state-ment ✓✓ CORRECT ANSWER Must group interest and fee charges separately from other transactions and fee and interest charges
must
be totaled for the period and year-to-date in a tabular format.
Credit Card statements must have late payment warnings, minimum payment warning and repayment disclosure examples.
-Non-credit card with no grace period: 14 days prior to due date
-Non-credit card with a grace period: 21 days prior to end of grace period
- Credit card: 21 days prior to due date
9. When are additional disclosures required for open-end credit advertising? Are there any exceptions ✓✓ CORRECT ANSWER -
A trigger term is mentioned: any minimum, fixed, transaction, activity or similar charge that is a finance charge that could be imposed, the APR and if the plan provides
for variable APR, any membership or participation fee could be imposed.
- Promotional rate: If promotional rate is related to opening of a new account, the CU must refer to the rate as "introductory", must be listed immediately next to each listing of
the promotional rate. Disclosures should also define in a prominent location (close to stated APR) when the promotional rate will end and the APR that will apply after the end of
the promotional period.
Exceptions include: television and radio advertisements, APR as well as a toll-free number can be provided to members to call for additional disclosure information.
10. What are the special rules applicable to HELOCs ✓✓ CORRECT ANSWER Yes, there are limitation on changing
terms, terminating plans and demanding repayment.
EXAM 3 AND EXAM 4
QUESTIONS AND COMPLETE
ANSWERS LATEST UPDATE
2026/2027
GRADED A+ .
,1. What types of credit products are covered under Regulation Z ✓✓ CORRECT ANSWER Loans secured by real property,
loans secured by personal property used as a member's principal dwelling or, Private education loans.
2. What types of credit products are not covered under Regulation Z ✓✓ CORRECT ANSWER Business
loans, for commercial or agricultural purposes Loan to non-natural
persons
Credit over $69,500 (limit is adjusted annually)
3. What is open ended credit? What is close ended credit ✓✓ CORRECT ANSWER Open ended credit: Repeated
transactions
Finance charge is imposed on outstanding unpaid balance Credit replenished as balance is
repaid
Close ended credit:
all other credit plans
4. What is a dwelling ✓✓ CORRECT ANSWER A residential structure that contains 1-4 units, whether or not that structure is attached to real property. Includes
individual condominium units, cooperative units, mobile home and trailer, if it is used as a residence.
5. Are there differences in account opening disclosures for HELOCs and other open-end credit? When must the disclosure be
provided ✓✓ CORRECT ANSWER For HELOCs, Reg Z requires:
-Application disclosures
- Account opening disclosures
- Periodic statements
*** CFPB Booklet is required to be given to the member
Disclosures must be provided to member prior to the first transaction.
6. What disclosures are required when advertising a promotional APR ✓✓ CORRECT ANSWER If promo-tional rate is related to
opening of a new account, the CU must refer to the rate as "introductory", must be listed immediately next to each listing of the promotional rate.
Disclosures should also define in a prominent location (close to stated APR) when the promotional rate will end and the APR that will apply after the end of the promotional
period.
, 7. What are the change-in-terms requirements for open-ended credit? Are the rules the same for all open ended products? If not,
what are the differences?-
: Must provide a 45-day notice of change in terms whenever there is a change to a term required to be in the account
opening disclosures.
For HELOC's, changes to terms requires the CU to issue a notice 15 days prior to the ettective date of the change. This is an example of a unilateral term change.
8. What are the periodic statement requirements for the different open-end credit products? What are the timing requirements
for providing each state-ment ✓✓ CORRECT ANSWER Must group interest and fee charges separately from other transactions and fee and interest charges
must
be totaled for the period and year-to-date in a tabular format.
Credit Card statements must have late payment warnings, minimum payment warning and repayment disclosure examples.
-Non-credit card with no grace period: 14 days prior to due date
-Non-credit card with a grace period: 21 days prior to end of grace period
- Credit card: 21 days prior to due date
9. When are additional disclosures required for open-end credit advertising? Are there any exceptions ✓✓ CORRECT ANSWER -
A trigger term is mentioned: any minimum, fixed, transaction, activity or similar charge that is a finance charge that could be imposed, the APR and if the plan provides
for variable APR, any membership or participation fee could be imposed.
- Promotional rate: If promotional rate is related to opening of a new account, the CU must refer to the rate as "introductory", must be listed immediately next to each listing of
the promotional rate. Disclosures should also define in a prominent location (close to stated APR) when the promotional rate will end and the APR that will apply after the end of
the promotional period.
Exceptions include: television and radio advertisements, APR as well as a toll-free number can be provided to members to call for additional disclosure information.
10. What are the special rules applicable to HELOCs ✓✓ CORRECT ANSWER Yes, there are limitation on changing
terms, terminating plans and demanding repayment.
