Section 4 Unit 5 Federal Mortgage Related Laws and Regulations Flashcards
HMDA
Home Mortgage Disclosure Act
It provides loan data to public.
Data can be used for several purposes:
Determining whether institutions are serving their communities housing needs.
Identify Discriminatory lending practices
Assisting public officials about decisions related to public investments
More on HMDA
It applies to all properties where attached or not.
Exclusions
Loans that are secured by a lien on unimproved land
more
Redlining
It is discriminating practice where loans are denied based on certain locations or race etc
CRA
Community Reinvestment Act (CRA) seeks to prevent redlining.
Does borrowers required to provide HMDA info
no
Introduction to the FCRA and FACTA
Fair Credit Reporting Act. was passed in 1970 It protects consumers who apply for credit. It regulates what information creditors can collect.
Who regulates these laws
Both FCRA and FACTA are regulated by CFPB
RMCR
Residential Mortgage Credit Report It is ordered when there are more than one inaccuracies on credit report
FACTA
The Fair and Accurate Credit Transactions Act. It is amendment to FCRA that serves to protect consumers from identity theft by requiring all credit report agencies (CRAs) to provide consumers with credit reports for no cost and allow consumers to place a fraud alert on their files.
FACTA
It requires federal agencies to implement consumer data security
Who enforces Data Security
Federal Trade Commission enforces data security regulations.
Fraud Alerts
All credit report include fraud alerts, which let the lender know about potential fraudulent uses of the reported party’s credit
USA PATRIOT Act
All credit reports also have a check against Known Terrorist Watch list as required by the Uniting and Strengthening America by Providing Appropriate tools required to intercept and Obstruct Terrorism
Security Freeze
is a freeze on your credit report that prevents creditors from accessing your credit report.
