HMDA (Home Mortgage Disclosure Act), HPA (Homeowner's Protection Act), and the Community Reinvestment Act, The USA Patriot Act, Do Not Call (DNC) Registry

Question 1

What does HMDA stand for, what is its regulation, and what is its purpose?

Answer 1

HMDA stands for Home Mortgage Disclosure Act; Regulation C; “Helps regulators C discriminatory lending patterns.”

Question 2

What does HMDA do?

Answer 2

It requires lenders to file “monthly” reports regarding the ethnicity, race and sex of all applicants. These monthly reports are called LARs (Loan Activity Reports).

Question 3

What application and section is HMDA information found?

Answer 3

1. ) 1003 Loan Application

2. ) Section 10 (Information For Government Monitoring Purposes).

Question 4

What does HPA stand for and what is its purpose?

Answer 4

HPA stands for Homeonwers Protection Act; it requires lenders or servicers to provide disclosures concerning PMI (Private Mortgage Insurance) on residential mortgage transactions.

Question 5

(HPA) When may the borrower request PMI cancellation?

Answer 5

At 80% LTV.

Question 6

If the borrower is current, when must the lender automatically cancel the PMI?

Answer 6

At 78% LTV.

Question 7

What is the purpose of the Community Reinvestment Act?

Answer 7

It encourages financial institutions to help meet the credit needs of the communities in which they operate—including low- and moderate-income neighborhoods.

Question 8

What is the purpose of the USA Patriot Act, why was it enacted?

Answer 8

It is intended to help the fed. government respond to potential terrorist threats and monitor suspicious activity. It was enacted because of the 9/11 terrorist attack.

Question 9

What minimum standards for verifying customers’ identities does the USA Patriot Act establish?

Answer 9

Requires lenders to verify:

1. ) Name
2. ) Address
3. ) Social Security Number.

Question 10

What type of program does the USA Patriot Act require lenders to establish, and what do these programs do?

Answer 10

1. ) Establishment of Anti-Money Laundering Programs.

2. ) They are meant to identify and address financial crimes.

Question 11

What does the DNC Registry stand for, and who enforces the DNC Registry?

Answer 11

It stands for the Do Not Call Registry; The Federal Trade Commission, Federal Communications Commission, and the sates enforce the DNC Registry.

Question 12

What goods or services must use the DNC Registry?

Answer 12

Any seller of goods or services by phone… or telemarketing. That includes MLO services.

Question 13

Any service that utilizes telemarketing, must do what with the DNC Registry every 31 days?

Answer 13

They must delete any phone numbers from their list that are found on the DNC Registry.

Question 14

What is the penalty for violating the DNC Registry?

Answer 14

$40,000 per call.

Question 15

How often is the national DNC registry updated, and how often is a company’s internal list updated?

Answer 15

1. ) Every 3 months.

2. ) Every 30 days.

Question 16

What is an EBR?

Answer 16

EBR stands for Established Business Relationship.

Question 17

Through an EBR, entities may contact someone on the DNC Registry within two established ways, what are these two ways?

Answer 17

1.) The entity may contact a consumer within the 18 months proceeding
a purchase/transaction.
2.) If a consumer makes an inquiry or submits an application to a company, the entity may contact them within 3 months proceeding the inquiry submitted application

Question 18

What is the DO NOT FAX?

Answer 18

This is a policy that states that advertisers may not send a message to anyone’s fax, unless they meet certain circumstances.

Question 19

Under what 4 circumstances are advertisers allowed to message someone’s fax number?

Answer 19

1. ) They have an EBR.
2. ) Fax # is public info.
3. ) Recipient gave permission.
4. ) Advertisement has clear opt-out instructions on the 1st page of the transmission for recipients who no longer wish to receive faxes form the sender.

Question 20

What is the penalty for an advertiser that violates the DO NOT FAX?

Answer 20

$500 per unauthorized fax.