Acronyms - Facts About Them

Question 1

ECOA

Answer 1

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

Question 2

HMDA

Answer 2

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

Question 3

FCRA

Answer 3

Fair credit reporting act

• passed in 1968
• also know as regulation V
• supervised by ftc but overseen by the CFPB

Question 4

RESPA

Answer 4

Real estate settlement procedures act
-passed in 1974
Also know as regulation X - “Respax your borrow”
-falls under CFPB

Question 5

TILA

Answer 5

Truth in lending act

• passed in 1968
• also know as regulation Z “TILA is the godZilla of lending laws”

Question 6

SAFE

Answer 6

Secure and fair enforcement

• passed in 2008
• the reason why mortgage licensing requires testing

Question 7

FACT

Answer 7

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.
-

Question 8

GLB

Answer 8

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

Question 9

HOEPA

Answer 9

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.

Question 10

AfBA/ABA

Answer 10

Affiliated business arrangement

-if you own 1% or more in any affiliated business you must disclose

Question 11

HPA

Answer 11

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%

Question 12

MDIA

Answer 12

Mortgage disclosure improvement act

-passed in 2008

Question 13

HERA

Answer 13

Housing and economic recovery act

• passed in 2008
• SAFE act is part of this

Question 14

FNMA

Answer 14

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

Question 15

FHLMC

Answer 15

Federal Home Loan Mortgage Corp

-also known as Freddie Mac

Question 16

CFPB

Answer 16

Consumer Financial Protection Bureau

• all mortgage laws fall under them except Fair Housing Act which falls under HUD
• implemented in 2010

Question 17

NMLS

Answer 17

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

Question 18

MDIA

Answer 18

Mortgage Disclosure Improvement Act
3/7/3 Rule

1. Initial disclosure within 3 business days of receipt of completed application.
2. 7 days must pass before loan can be closed on after disclosures are delivered/mailed
3. Consumer must receive corrected disclosure at least 3 business days before loans can be consummated.

Question 19

FHA

Answer 19

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.

Question 20

CRA

Answer 20

Community Reinvestment Act

• enacted by congress in 1977
• requires financial institutions to help meet the credit needs of the communities in which they operate.

Question 21

FHFA

Answer 21

Federal housing finance agency

• government agency over Fannie Mae and Freddie Mac

Question 22

YSP

Answer 22

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

Question 23

HECM

Answer 23

Home Equality Conversion Mortgage

Question 24

MARS

Answer 24

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.