Federal Mortgage-Related Laws questions Flashcards
What does RESPA stand for?
Real Estate Settlement Procedures Act
Who is responsible for enforcement of RESPA?
CFPB - Consumer Financial Protection Bureau
RESPA’s regulations are known as…
Reg X
Types of loans that RESPA does not apply to:
ABC: Agricultural, Business, and Commercial
What is the make up of a completed loan application?
ALIENS: Address, loan amount, income, estimated value, name, and SSN
The Good Faith Estimate and HUD-1 Settlement Statement are required for these types of loans;
ROT: Reverse mortgages, open-end mortgages, and trailers.
What does ECOA stand for?
Equal Credit Opportunity Act
ECOA regulations are known as…
Reg B
What is HMDA?
Home Mortgage Disclosures Act. Federal fair lending act to discourage redlining.
What is the statute of limitations on an ECOA violation?
5 years
What does TILA stand for?
Truth-In-Lending Act
The primary goals of TILA are:
CAR. Disclosing Costs, truthful Advertising, and right to Rescind.
TILA regulations are known as…
Reg Z
Who is responsible for implementing and enforcing TILA regulations?
CFPB - Consumer Financial Protection Bureau
What is a finance charge?
Cost of credit shown as a dollar amount.
What is included in a finance charge?
COIMM: Closing agent fee, Origination fees, Interest rate and fees, Mortgage broker fees, and Mortgage insurance
What does HOEPA stand for?
Home Ownership and Equity Protection Act
What is reverse redlining?
The practice of targeting communities with limited access to credit.
A ______ is a mortgage loan that meets an APR threshold, a points & fees threshold, or a prepayment penalty threshold.
High-cost Mortgage
A first-lien home loan is a high-cost mortgage if it’s APR is ____ points above the average prime rate for a comparable transaction.
6.5
A subordinate-lien home is a high-cost mortgage if it’s APR is ____ points above the average prime rate for a comparable transaction.
8.5
For loans of more than $22,052, the APR threshold is triggered if the points and fees exceed __% of the total loan amount.
5%
