Mortgage Origination: RESPA & Regulation B Flashcards
Mortgage Origination: RESPA & Reg B
What loans are subject to RESPA?
Federally related mortgage loans
- Loan made by a lender that is regulated or insured by an agency of the federal government such as the NCUA
- Loan made or insured by an agency of the federal government or under a federal government agency
program
- Loan to be sold to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) or the Government National Mortgage Association (Ginnie Mae).
- Secured by a first or subordinate lien on residential real
property upon which either a one to four family structure or a manufactured home is located or is to be constructed or placed using loan proceeds
Mortgage Origination: RESPA & Reg B
Which loans are generally subject to RESPA, but not the disclosure requirements?
Most closed-end mortgage loans (if a loan follows Reg Z or TRID, no need to disclose)
- HELOCs
- Construction-only loans
- Loans secured by vacant land or by 25 or more acres
- Chattel-secured mortgages (dwelling not attached to real property)
Mortgage Origination: RESPA & Reg B
When can Regulation Z application disclosures be used instead of the GFE?
For open-end credit covered under Reg Z, the application disclosures satisfy the GFE requirement
Mortgage Origination: RESPA & Reg B
What is RESPA’s kickbacks rule?
No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person.
