Definitions

Question 1

RESPA

Answer 1

RE Settlement Procedures act  REG X
RESPA concerns settlement;TILA= financa
Sec #6 = servicing
Sec #8 = Referrals & kickbacks
Sec#9  = title agent - borrow can pick
Sec #10 = Escow

Question 2

CFPB

Answer 2

Consumer Financial Protection Bureau. The jurisdiction in all 50 states. Focus = Fed law + MLO. States focus on the mortgage industry in their states. Only states can issue, revoke, suspend MLO licenses, and registration. All regulations begin with a Letter.
B= ECOA = Equal Credit Opprotunity Act
C= HMDA = Home Mortgage Disclosure Act
G= SAFE for MLH= Safe for
N = MAP = Mortgage Acts & Practice in Advertising
P= (GLBA) Gramm-leach-Bliley, privacy of consuner fin info
V= FCRA = Fair Credit Reporting Act
X = RESPA = RE Settlement Procedures Act
Z = TILA = Truth In ending Act

Question 3

UDAAP

Answer 3

Unfair, Deceptive OR Abusive Acts Or Practices

from Dodd-Frank

Question 4

Dodd-Frank Act applies to

Answer 4

Applies to 
RE Agents
Appraisers
Fin institutes
Fin & investment advisors

Question 5

State Model

Answer 5

Template for how states should regulate mortgage activity in their states

Question 6

NMLS

Answer 6

Nationwide Multistate LicenseSystem
Reg G only Regulates
Reg H Both regulates & licenses
People working depository banks only register not licensed

Question 7

CSBS

Answer 7

Conference of State of Bank Supervisors
Acts as a single voice to Congress for state banks and as liasion between state & federal regulators
American Assoc of Mortgage Regulators
Provides exchange of information

Question 8

TILA

Answer 8

Truth in Lending Act, Reg Z
Purpose: promote the INFORMED use of Consumer Credit thru disclosures about terms and Costs; or rules and costs for borrowing money
TILA = CREDIT; RSPA = SETTLEMENT
deos not cover: income producing, credit > $54,600, public utility and fuel budget plans

Question 9

Trigger Terms

Answer 9

elements that require additional to understand actual costs. Give simple interest rate need to provide APR too,

Question 10

TILA SECTIONS

Answer 10

#19 MDIA (Mortgage Disclosure Improvement Act)
#23 Right of Rescission
#32 HOEPa = Home Ownership Equity Protection Act
#35 Higher priced Mortagge Loans
#36 Loan Originator Rule
#42 Valuation Independance
#43 Ability to repay & quaalified Mortgages

Question 11

Tila Sec 19 MDIA

Answer 11

Mortgage Disclosure Improvement Act
7 day waiting period from delivery of initial dsiclosures and loan closing. can be waivered if emergency
If revison is made than have 3 more days for review. IR can only vary 1/8% on fixed, 1/4% on ARM

Question 12

TILA Sec 23

Answer 12

RIGHT OF RESCIAAION
ONLY ReFie and Reverse Mortgages Right of Rescission
Get Notice of Right to Canel disclosure at closing. Hace 3 business days. after 3 loan is CONSUMMATED. Time = 3 Years if not owners get the Notice of Right

Question 13

Covered Loan

Answer 13

High cost loans

Question 14

TILA #32 HOEPA

Answer 14

Hme Owner Equity Protection Act
High cost when:
Loan >$21,980 then points + fees <5%
Loan < $21,980 then points + fees <8% or $1099 which ever is lower
APR > 6.5% above APOR =avg Primer Offer rate on first lien
> 8.5% above APOR on Mfged homes and subordinate loan
Prepayment payment >36 mths OR prepayment >2% of principle balance
Some ballons fall into this category: term <5 yrs, pay sch adjust seasonally, Bride loan <12 mths, or loans for rural and underserved area. DISCLOSURE = Covered Loan Notice

Question 15

HPML`

Answer 15

TILA #35 High Priced Mortgage Loans
Closeed-end on primary residene where APR
>=1.5% for first’>= 2.5% jumbo firsts
>3.5% subordinate liens
Need appraisal and secons=d appraisal if to cover flippers unless < $27,200

Question 16

Loan Originator Rule

Answer 16

TILA #36
Limits MLO compensation to prevent STEERING
can only receive 1 pay for a loan.pay not based on type of loan.
Safe Harbor for MLO by providing by presenting consumers multiple options
Payment must be processed <= 7 days upon receipt. Can not fee stack, iei late fee on top of late fee

Question 17

Value Independance

Answer 17

TILA #42

deals with inflated appraisals

Question 18

QM qualified mortgages; ATR =ability to Pay

Answer 18

TILA #43
Directive: statement on subprime mortgage
Guidence; on nontraditional Mortgage product risks
were NOT laws.
ATR based on income, employment, Morgage payment, othe mortgage, monthly mortgage-related obligations, DTI, resdiual incomce, credit history

Question 19

TILA Disclosures

Answer 19

General dsiclosures, loan estimate, closing, HOEPA, Notice of right to canclel, CFPB Home Loan Toolkit (at application) early ARM , CHARM, servicing RM adjustmnet, opem\n-end mortgage =(Inital TIL, Final TIL, what you should know about HELOC)

Question 20

TILA General dislcosures

Answer 20

part of origination transaction:
Stmt regarding retainong copy of loan dpocs
Stmt terms are subject to chnage & may get refund, stmt about default, stmt of no obligation

Question 21

TIL initial

Answer 21

at applicationor <= 3 B_Days Open end loaans only

Question 22

TIL Final

Answer 22

Open end only

at closing or one day before, compare to initail TIL

Question 23

TILA Penalties

Answer 23

Monetary form $400 to $4K
Class action: >$500K, or 1% of creditor;s network which ever is less
willfull break rules <= $5K an 12 months in prision.
Violation of loan originator rule <= 3 times amt paid original

Question 24

TILA Record keeping

Answer 24

keep for 2 years

Loan originator compensation records for 3 years

Question 25

TILA Disclosures

Answer 25

orinetation process
Initial
Loan estimate (closed end), Initial Truth in Lending (open end)
What you should know about HELOC (HELOC LOANS)
Closing:
Closure disclosure (closed end)
Final Truth in Lending (open end)