Regulations & Acts Flashcards
Truth in Lending Simplification & Reform Act
- Effective 7/1/1969
- Requires 4 chief disclosures: annual % rate, finance charge, amount financed, and total payments.
Regulation Z
Provides specific consumer protections in mortgage loans for residential real estate
- requires borrower to be fully informed
- regulates advertisement of credit rates
Disclosure of Loan Estimate
REGULATION Z - Within 3 business days, disclose true/effective annual interest rate on a loan (APR = annual percentage rate)
Advertising without Disclosure
REGULATION Z - ONLY item that can be advertised without a full disclosure is the APR
Ads needing credit terms disclosed
REGULATION Z:
- Down payment
- Amount of any installment as a % or $
- Period/term of repayment
- # of installments
- Finance charge (or lack thereof)
Ad disclosure terms needed per Regulation Z
- Cash price
- Cash down payment/statement none needed
- # and due dates of payments
- Amount of finance charge expressed as APR
Regulation Z Penalites
$5,000 fine, imprisonment up to 1 year, or both.
Equal Credit Opportunity Act (ECOA)
- Enacted in 1975
- Prevent discrimination in loan process
- Unlawful to discriminate against: race, color, religion, sex, national origin, martial status, age, income derived from public assistance program, exercised rights under the Federal Consumer Credit Protection.
Real Estate Settlement Procedures Act (RESPA)
- Enacted in 1974
- Regulates activities of lending activities (4)
- Advance disclosure of settlement costs, unnecessarily expensive settlement charges, greater/more timely information in settlement process, eliminate referral/kickback fees that increase cost of settlement
RESPA Requirements (3)
- Good faith estimat
- Homebuyer’s Guide to Settlement Costs
- HUD Form 1 - standard settlement form designed to clearly itemize all charges paid by both borrower and seller at the final settlement
Maine Shoreland Zoning Act
protect water quality, limit erosion, conserve wildlife, preserve natural beauty
- 250ft of high water line of ponds over 10 acres, river that drains at least 25 m^2, all tidal waters/ salt water marshes
- 250ft of freshwater wetland over 10 acres
- 75ft of certain streams
- minimum shore frontage and lot sizes
- tidal = 30,000ft^2 lot size, 150ft frontage
- inland = 40,000^2 lot size, 200ft frontage
Maine minimum lot size
requires lots with subsurface waster disposal be min. 20,000sqft
-if abuts water - 100ft of frontage
Conversion of seasonal dwellings
must obtain conversion permit to go from seasonal to year round
transfers of shoreland property
if has subsurface waste disposal, must swear that it has been properly functioning for the last 180 days prior to sale
Maine Coastal Wetlands Law
prohibits dredging, filling, erecting permanent structures in coastal wetlands without permit from DEP
