Acronyms - Facts About Them Flashcards
ECOA
Equal credit opportunity act
-Passed in 1974
-Also known as regulation B - “you want all people to Be Equal”
- equal right for credit to all.
-falls under CFPB
Protected Classes:
-sex, age, marital status, national origin, color, receipt of public assistance, race, religion
HMDA
Home mortgage disclosure act
- passed in 1975
- also know as regulation C - “C your home”
- established to determine if financial institutions are
1. Serving the housing needs of their communities
2. Showing signs of discriminatory lending practices
-applies to 1 to 4 unit family residential loans
FCRA
Fair credit reporting act
- passed in 1968
- also know as regulation V
- supervised by ftc but overseen by the CFPB
RESPA
Real estate settlement procedures act
-passed in 1974
Also know as regulation X - “Respax your borrow”
-falls under CFPB
TILA
Truth in lending act
- passed in 1968
- also know as regulation Z “TILA is the godZilla of lending laws”
SAFE
Secure and fair enforcement
- passed in 2008
- the reason why mortgage licensing requires testing
FACT
Fair and accurate credit transactions
-passed in 2003
-provides for a free copy of the credit report from each bureau once a year
-allows consumers to place fraud alerts and credit freezes
-this is what requires the obscure questions when calling the bank
-requires business to truncate credit/debit card information on receipts.
-requires measures to secure and dispose of sensitive consumer credit information.
-
GLB
Gramm Leach Bliley
- aka - Financial Services Modernization Act of 1999
- three Senators
- passed in 1999
- SPF - safeguards rules, pre texting, financial privacy rule
- requires consumer privacy notice
- consumer vs customer
- Make sure all things in the office are shredded
HOEPA
Home ownership and equity protection act
- passed in 1994
- also known as section 32
- also known as high cost loans
- part of regulation Z
- can allow for a 3 year right of recision without proper disclosure
- apr exceeds apor index by more than 6.5 percentage points on first. 8.5 percentage points on second
- no neg amortization loans
- has a required specific disclosure that goes with it.
AfBA/ABA
Affiliated business arrangement
-if you own 1% or more in any affiliated business you must disclose
HPA
Homeowners Protection Act
- passed in 1998
- private mortgage insurance
- borrow can request PMI cancellation when ltv is 80%
- automatic cancellation of PMI when ltv is 78%
MDIA
Mortgage disclosure improvement act
-passed in 2008
HERA
Housing and economic recovery act
- passed in 2008
- SAFE act is part of this
FNMA
Federal National Mortgage Association
- created in 1938 as first secondary market player from Great Depression
- purchase conventional mortgages and FHA and VA loans
- also known as Fannie Mae
FHLMC
Federal Home Loan Mortgage Corp
-also known as Freddie Mac
CFPB
Consumer Financial Protection Bureau
- all mortgage laws fall under them except Fair Housing Act which falls under HUD
- implemented in 2010
NMLS
Nationwide Mortgage Licensing System & Registry
- started in 2004 by conference of state bank supervisors (CSBS) and American association of residential mortgage regulators (AARMR)
- responsible for providing centralized and standardized system for mortgage licensing
- online system built and maintained by Financial Industry Regulatory Authority
MDIA
Mortgage Disclosure Improvement Act
3/7/3 Rule
- Initial disclosure within 3 business days of receipt of completed application.
- 7 days must pass before loan can be closed on after disclosures are delivered/mailed
- Consumer must receive corrected disclosure at least 3 business days before loans can be consummated.
FHA
Fair housing act
- Title VIII of the civil rights act of 1968
- prohibits discrimination against the sale or lease of a residential property against protected classes.
CRA
Community Reinvestment Act
- enacted by congress in 1977
- requires financial institutions to help meet the credit needs of the communities in which they operate.
FHFA
Federal housing finance agency
- government agency over Fannie Mae and Freddie Mac
YSP
Yield spread premium
- incentive paid to mortgage originators by lenders to quote a higher interest rate for a loan than the borrower qualifies for at the lenders par rate.
- allows borrower to bring in less money at close
HECM
Home Equality Conversion Mortgage
MARS
Mortgage Assistant Relief Services Rule
You have to be on “MARS” if you think you can help me modify my mortgage!
- Bans on collecting fees until homeowners have a written offer. Pertains to loan modifications
- Must disclose key information to consumers
- Prohibition against making false/misleading claims about services
- Prohibition from advising consumers to discontinue communication with lenders.
