CHAPTER 7: REVIEW OF FEDERAL LAW - QUICK FACTS SUMMARYS Flashcards
RESPA
Federal Mortgage Law Quick Facts: Real Estate Settlement Procedures Act
Regulation: Regulation X
Acronym: RESPA
Year Created: 1974
Main Purpose: Educate borrowers on the cost of their loans
Disclosures/Notice Required: Escrow notices, notice of transfer of loan servicing, ABA
Important Terms Related to this Law: Kickbacks, referral fees, escrow requirements, transfer of
servicing
Entity Responsible for Enforcement: CFPB
TILA
Federal Mortgage Law Quick Facts: Truth in Lending Act
Regulation: Regulation Z (think TILA-ZILA)
Acronym: TILA
Year Created: 1968
Main Purpose: Protect consumers from predatory lending practices
Disclosures/Notice Required: HOEPA notice, homeownership counseling notice,
TRID
Important Terms Related to this Law: High-cost loans, ability to repay, higher-priced loans,
qualified mortgage, advertising, right of rescission
Entity Responsible for Enforcement: CFPB
Other Laws that have influenced it: Dodd-Frank
TRID
Federal Mortgage Law Quick Facts: The TILA-RESPA Integrated DisclosureRule
Regulation: N/A
Acronym: TRID
Year Created: 2015
Main Purpose: Simplify the disclosure process
Disclosures/Notice Required: Loan Estimate, Closing Disclosure
Important Terms Related to this Law: Changed circumstance, tolerances,
summation, application
business days, con
Entity Responsible for Enforcement: CFPB
Other Laws that have influenced it: RESPA, TILA
ECOA
Federal Mortgage Law Quick Facts: The Equal Credit Opportunity Act
Regulation: Regulation B (EBOA)
Acronym: ECOA
Year Created: 1974
Main Purpose: To prevent discrimination on specified protected classes
Disclosures/Notice Required: Notice of Adverse Action, Appraisal Notice, ECOA Notice
Important Terms Related to this Law: Protected class, adverse action; appraisal, disparate impact,
disparate treatment
Entity Responsible for Enforcement: The CFPB
Other Laws that are complimentary: The Home Mortgage Disclosure Act; Fair Housing Act
HMDA
Federal Mortgage Law Quick Facts: The Home Mortgage Disclosure Act
Regulation: Regulation C (A good way to remember HMDA and it’s
regulation is HMDAC)
Acronym: HMDA
Year Created: 1975
Main Purpose: Used to track information to prevent discrimination
Disclosures/Notice Required: Monitoring statement on the 1003
Important Terms Related to this Law: Redlining, blockbusting, disparate impact, disparate treatment
Entity Responsible for Enforcement: The CFPB
Other Laws that are Complimentary: ECOA; Fair Housing Act
FCRA
Federal Mortgage Law Quick
Facts:
Fair Credit Reporting Act
Regulation: Regulation V
Acronym: FCRA
Year Created: 1970
Main Purpose: Restricts use of credit reports and requires accuracy on credit reports
Other Laws that are Complimentary: FACTA
FACTA
Federal Mortgage Law Quick
Facts:
Fair and Accurate Credit Transaction Act
Year Created: 2003
Main Purpose: Improves consumer access to credit information; Provides avenues for the
resolution of consumer disputes; Helps to prevent and detect identity theft
Disclosures/Notice Required: Notice to Home Loan Applicant
Important Terms Related to this Law: Identity theft, consumer disputes
Entity Responsible for Enforcement: CFPB
Other Laws that are Complimentary: FACTA
Telemarketing Rules & Do Not Call
Federal Mortgage Law Quick Facts: The Do Not Call Act
Regulation: N/A
Year Created: 2003
Main Purpose: To implement and enforce the Do-Not-CallRegistry
Bank Secrecy Act / Anti-Money Laundering (BSA/AML)
Federal Mortgage Law Quick Facts: The Bank Secrecy Act/Anti-Money Laundering
Regulation: N/A
Acronym or Nickname: BSA/AML
Year Created: 1970
Main Purpose: To prevent money laundering
Disclosures/Notice Required: N/A but yearly education required
Important Terms Related to this Law: Money laundering, suspicious activity report
Entity Responsible for Enforcement: FinCEN
Gramm-Leach-Bliley Act or Financial Modernization Act of 1999
Federal Mortgage Law Quick Facts: The Gramm-Leach-Bliley Act
Regulation: N/A
Acronym: GLBA
Year Created: 1999
Main Purpose: Protectconfidentialityof non-public personal information
Disclosures/Notice Required: Privacy Notice
Important Terms Related to this Law: Non-public personal information, pretexting
The MAP Rule
Federal Mortgage Law Quick Facts: Mortgage Acts and Practices
Regulation: Regulation N
Acronym: The MAP Rule
Year Created: 2011
Main Purpose: Regulate Advertising
Disclosures/Notice Required: N/A
Important Terms Related to this Law: Commercial communication, product, term mortgage credit
Entity Responsible for Enforcement: The Federal Trade Commission
Other Laws that are complementary: TILA
US Patriot Act
Federal Mortgage Law Quick Facts: The Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and
Obstruct Terrorism” Act
Regulation: N/A
Acronym or Nickname: USA Patriot Act
Year Created: 2001
Main Purpose: Requires identification to be provided for mortgage loans with the purpose of identifying terrorists
Important Terms Related to this Law: Terrorism, terrorist, money laundering, financial crimes
Entity Responsible for Enforcement: Financial Crimes Enforcement Network (FinCEN) under the
United States Department of the Treasury
E-Sign Act
Federal Mortgage Law Quick Facts: The Electronic Signatures in Global and National Commerce Act
Regulation: N/A
Acronym or Nickname: E-Sign Act
Year Created: 2000
Main Purpose: Allows for electronic signatures on mortgage loan documents
Disclosures/Notice Required: Prior Consent, Notice of Availability of Paper Records
Important Terms Related to this Law: e-signatures
Homeowners Protection Act
Federal Mortgage Law Quick Facts: The Homeowner’s Protection Act
Regulation: N/A
Acronym: HPA
Year Created: 1998
Main Purpose: Regulates private mortgage insurance
Important Terms Related to this Law: Private mortgage insurance (PMI) and Loan to Value (LTV)
