Other Federal Laws and Guidelines

Question 1

HMDA stands for

Answer 1

Home Mortgage Disclosure Act

Question 2

HMDA= Regulation

Answer 2

Regulation C

Question 3

Purpose of HMDA

Answer 3

A reporting law meant to discover discrimination by lenders

The Home Mortgage Disclosure Act (HMDA) was enacted because of credit shortages in certain urban neighborhoods and the failure of certain financial institutions to provide adequate home financing to qualified applicants on reasonable terms. Its provisions allow for the determination of discriminatory lending patterns and to assist in enforcing fair lending laws.

Question 4

USA Patriot Act Purpose

Answer 4

To help law enforcement monitor communications and control money laundering activity that might be funneling money to terrorists.

The purpose of the USA PATRIOT Act is to deter and punish terrorist acts in the United States and around the world and to enhance law enforcement investigatory tools.

Question 5

FCRA stands for

Answer 5

Fair Credit Reporting Act

Regulation V

Question 6

FCRA is a law that deals with

Answer 6

Credit reports and credit reporting agencies.

Question 7

FCRA 5 Rights

Answer 7

1. Right to and Adverse Action Notice (denial letter)
2. Free Copy of Consumer Credit File/ Credit Report
3. Request Credit Score (not free)
4. Right to dispute incomplete or inaccurate information
5. The right to limit prescreened offers

Question 8

FCRA= Regulation

Answer 8

Regulation V

Question 9

Purpose of FCRA

Answer 9

to ensure the accuracy, fairness and privacy of consumers personal information that is assembled and used by consumer reporting agencies.

Question 10

FACTA

Answer 10

Fair and Accurate Credit Transaction Act
(amendment to FCRA in 2003)

Enables identity theft victims to place “fraud alerts” on their credit files and work with creditors and credit bureaus to “block” access to their credit report

•FACTA allows military personnel to place an alert on their credit file if they are deployed

• Improve resolution of consumer disputes
• Improve the accuracy of consumer records
• Requires truncated account numbers
• Make improvements in consumer access to credit information
• Prevent identity theft

Question 11

FTC Red Flags Rule

Answer 11

• Identify relevant Red Flags for the covered accounts •Detect Red Flags
• Respond appropriately to any Red Flags that are detected
• Ensure the Program is updated periodically, to reflect changes in risks to customers and to the safety and soundness of the financial institution

Question 12

BSA and AML stand for:

Answer 12

Bank Secrecy Act and Anti Money Laundering

Question 13

Purpose of BSA and AML

Answer 13

The BSA’s record-keeping and reporting requirements establish a financial trail for investigators to follow as they track criminals, their activities, and their assets. When red flags are recognized the MLO is to report the records to FinCen.

Question 14

GLBA stands for

Answer 14

Gramm-Leach- Bliley Act 1999

Question 15

GLBA purpose

Answer 15

It is a United States federal law that requires financial institutions to explain how they share and protect their customers’ private information.

Question 16

GLBA Safeguard Rule

Answer 16

• The Safeguards Rule requires companies to assess and address the risks to customer information in all areas of their operation
• Reduce the risks to customer information by knowing what you have and keep only what you need

Question 17

GLBA Do-Not-Call

Answer 17

•It is a Rule violation to call any consumer who has asked not to be called again (the “entity-specific Do Not Call” provision
•Sellers and telemarketers are responsible for maintaining their individual Do Not Call lists of consumers who have asked not to receive calls placed by, or on behalf of, a particular seller
-8 AM - 9PM
-Violations $16,000 each

Question 18

MAP/ Mortgage Acts and Practices – Advertising= Regulation

Answer 18

Regulation N

Question 19

MAP Prohibits

Answer 19

The Act prohibits material misrepresentation, expressly or by implication, in any commercial communication, regarding any term of any mortgage.
-Regulates how mortgage lenders, servicers, brokers, advertising agencies, and others can advertise mortgage services.

Question 20

MAP record-keeping requirements

Answer 20

Covered entities must maintain records for 24 months from the last date of the applicable commercial communication regarding any term of any mortgage credit product

Question 21

E-Sign Act

Answer 21

• The Act was designed to promote the use of electronic signatures in commercial transactions involving both businesses and consumers
• To ensure that the electronic documents and signatures resulting from these transactions are given the same legal validity and enforceability as written documents and signatures

Question 22

HPA- Private Mortgage Insurance Cancelation Act

Answer 22

Private mortgage insurance shall be canceled when the borrower fulfills all of the following requirements
•Submits a written cancellation request to the servicer
•Has a good payment history on the mortgage
•Is paid as agreed/current on the payments
•Has evidenced that the value of the property is such that the LTV is at or below 80%
•Certification that there is no subordinate lien

Question 23

Dodd-Frank Act Purpose

Answer 23

Its purpose: to protect consumers from taking out mortgages that are beyond their means to pay the loan.

Question 24

CFPB Stands for

Answer 24

Consumer Financial Protection Bureau

“New sheriff in town”

Question 25

CFPB was created by what two entities?

Answer 25

The Dodd- Frank Act and the Consumer Finance Protection Act in 2010

Question 26

HUD stands for

Answer 26

Department of Housing and Urban Development

Question 27

HUDs purpose

Answer 27

The Department of Housing and Urban Development is the Federal agency responsible for national policy and programs that address America’s housing needs, that improve and develop the Nation’s communities, and enforce fair housing laws.
-helps low income residents in all counties.