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17 Cards in this Set
- Front
- Back
- 3rd side (hint)
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S.A.F.E ACT Title V |
Secure and Fair Enforcement Act for mortgage licensing Purpose - reduce regulatory burden and protect consumers relating to extending loans. NMLS- *licensing and registry system -provides license app. and requirements -provides licensing data base and supervisory -aggregates and improves the flow of info between regulators. -increases accountability and tracking MLO ' S. -Prevents fruad Provides history of MLO |
NMLS |
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H.O.E.P.A (regulation B) |
Home Ownership and Equity Protection Act -regulated by CFPB*PURPOSE -addresses high cost loans, interest and fees. ensures all consumers an equal chance to obtain credit with fairness, impartiality, and without discrimination on basis of race, color, sex, age, religion or marital status. *Implementation- MLO must give ECOA notice to applicant at time of request for credit\MLO must notify applicant of credit worthiness within 30 days using a notice of action statement of application status. required to supply Copy of appraisal within 3 biz days of application. *LAW- $10,000 in individual law suits, up to 500,000 in class action law suits. Law suits must be within 2 years of violation.
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Reg. B/discrimination/ |
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FFHA |
Federal Fair Housing Act *Prevents Dscrimination against race, color, national origin, religion, sex, familial status or handicap -Additionally against physical or mental disabilities. Example: No pet policy, must allow someone with a visual impairment a guide dog. VIOLATIONS - report given TO HUD within 1 year of incident.
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FCRA |
Fair Credit Reporting Act Purpose- ensures that Consumer reporting agencies(CRA) protect the consumers personal info used for originating a loan. ADVERSE ACTION- notice of detailed info for reason why application was denied based in credit report. Right to copy of credit report, right to dispute info on credit report. |
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FACTA |
FAIR & ACCURATE CREDIT TRANSACTION ACT EXTENSION oF FCRA Regulated by CFPB MLO- intended to help cunsumers figjt ID theft shall provide notice to Home Loan Applicant of Credit Score info Disclosure to consumer when credit report is obtained. Limits on info sharing & Red Flags patterns, or practices of ID theft. DISPOSAL RULE-MLO shall follow procedures to destroy personal data to prevent ID theft. |
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RESPA. Regulation X |
Real Estate Settlement Procedures Act. REGULATED- HUD PURPOSE- help borrower become better shoppers for settlement services. Informs borrower of unnecessary fees that increase settlement services. Ex. Unearned fees,Kick back fees referral fees. And informs consumer of reduction and limits on amounts. |
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GFE |
GOOD Faith Estimate Gonverned BY RESPA-GFE estimated cost to close loan. MLO must provide within 3 business days from extension of credit. Some Estimates must be accurate based on tolerances other's not so much. |
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Thing of Value |
Means a method of payment, in which servicing agent receives through cash, discounts assets. |
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HUD SETTLEMENT COST BOOKLET |
MLO shall give booklet to consumer within 3 business days of receiving extension of credit. Outlining settlement servicing cost. |
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HUD 1 settlement statement |
Under RESPA, Disclosure provided to buyer 1 business day prior to closing showing all charges imposed on seller and buyer connected with loan. Includes comparison chart to compare charges imposed the GFE. Lender must retain records for 5 years. Unless loan is sold. |
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Mortgage servicing disclosure statement |
UNDER RESPA, MLO shall provide MRTG servicing disclosure at time of application which states whether lender will provide service or transfer to another lender which in the case would require "MRTG servicing transfer Disclosure" |
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Subprime Mortgage |
Loan granted to those with poor credit history (below 600). Those who don't qualify for conventional MRTGS because of having a larger than average risk of defaulting on a loan. |
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ABA Disclosure |
AFFILIATED BUSINESS ARRANGMENT DISCLOSURE- is when a settlement service provider refers the consumer to a provider with beneficial interest. *Disclosure before closing |
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Initial Escrow Statement |
Itemize(list) the estimated taxes, insurance premiums, and other charges anticipated to be paid from escrow account during first 12 months of loan. Disclosure- given at closing, the lender has 45 days from settlement to deliver it. |
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Annual escrow statement |
DISCLOSURE given after closing once a yr. Summarizes all deposits and payments during 12 month period in addition to notifying borrower of shortages, or surplus in account. And advises course of action. |
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SERVICING TRANSFER STATEMENT |
Disclosure- after closing stating if the loan servicer sells or assigns servicing right to another loan servicer. Must notify 15 days before effective date. |
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RESPA Disclosures |
GFE - Estimated amount of settlement charges including yield spread premiums paid by lender HUD Settlement Cost Booklet- given within 3 days of request for extension of credit. MORTGAGE SERVICING/TRANSFER DISCLOSURE - given to borrower at the time of application(1003) HUD-1 SETTLEMENT STATEMENT- given to buyer upon buyers request 1 day prior closing the information known to settlement agent at time of inspection.
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