Federal Mortgage Related Laws
This regulation implements the Equal Credit Opportunity Act (ECOA).
What is Regulation B?
Overall responsibility for interpretation, implementation, and compliance with the S.A.F.E. Act is currently delegated to this agency.
What is the Consumer Financial Protection Bureau (CFPB)?
This document connects the promissory note to the collateral.
What is the Mortgage or Deed of Trust?
A Loan Estimate must be delivered or mailed within this time period after receipt of a written application.
What is three business days?
This requires one person (the agent) to show loyalty, good faith, and an obligation of the agent to consider the interests of the other person before their own.
What is fiduciary duty?
Dividing the PITI by the amount of a borrower’s monthly gross income determines this ratio.
What is the Housing Expense/Front-End Ratio?
This regulation deals with the accurate disclosure of the cost and terms of credit.
What is Regulation Z?
This individual determines licensing eligibility.
Who is the Commissioner?
At this LTV percentage, a creditor automatically terminates private mortgage insurance (PMI) on a conventional loan.
What is 78% LTV?
An 80-10-10 loan is an example of this type of loan.
What is a piggyback loan?
When ordering an appraisal, it is illegal to do this.
What is requesting a minimum or specific value?
This is the LTV for a loan in the amount of $525,000 and a property with an appraised value of $750,000.
What is 70%?
This agency enforces the Fair Housing Act (FHA).
What is the Department of Housing and Urban Development (HUD)?
The SAFE Act sets forth that for each violation of the Act, a maximum civil penalty of this much can be imposed on a loan originator.
What is $25,000?
This is what you call a loan that does not meet the standards set in place by Fannie & Freddie.
What is a non-conforming loan?
This is the accuracy tolerance for amounts stated on the Loan Estimate and the actual closing costs if the consumer is allowed to shop for his/her own settlement service provider and chooses one from the list.
What is 10%?
This is used to help the borrower subsidize closing costs in exchange for taking the higher rate.
What is a borrower credit?
This type of cap on an ARM would limit the amount that an interest rate could adjust over the life of the loan.
What is the lifetime cap?
This is how many calendar days after settlement the Initial Escrow Statement is due.
What is 45?
A loan originator may receive compensation from a minimum of this many persons/entities in connection with the same transaction
What is two?
These types of mortgages typically carry two different types of mortgage insurance.
What are FHA loans?
For an FHA loan, the seller may contribute this much toward the borrower’s closing costs.
What is 6% of the sales price?
Lenders must wait until payments are delinquent for at least this many days before enforcing an acceleration clause that appears in a mortgage.
What is 120?
The Smiths are buying a house for $200,000. After their 10% down payment, they have also decided to pay two discount points. This is the dollar amount of the discount points.
What is $3600?
This agency has the authority to enforce FACTA rules that require certain businesses and organizations to develop, implement, and administer identity theft prevention programs.
What is Federal Trade Commission (FTC)?
If a licensed mortgage loan originator (MLO) is convicted of a felony, this person is responsible for reporting the information to the NMLS.
Who is the mortgage loan originator (MLO)?
This element of an ARM is a statistical report that is a generally reliable indicator of the approximate change in the cost of money and may be used to adjust interest rates.
What is the index?
As set forth by Regulation V, a completed Chapter 13 bankruptcy stays on the consumer's credit report for this many years since the date the bankruptcy was filed.
What is seven?
This behavior entails conspiratorial involvement of individuals using the mortgage market to benefit financially from criminal behavior.
What is fraud for profit?
If an ARM loan starts at 3%, is locked for five years, and then adjusts annually, this is how many adjustments will occur by the end of year seven.
What is two?
According to HOEPA, late fees may not exceed this percentage of the past-due amount.
What is 4%?
The temporary authority to act as a state-licensed MLO will expire in this many calendar days after the date the applicant was issued a temporary license.
What is 120?
This clause prevents someone from assuming a loan without lender permission.
What is an alienation clause?
This is the portion/section of the loan application where one would find a street address of the property and whether it will be a primary or secondary residence.
What is Section 4?
This is the maximum prepayment penalty which may be charged in the first year of the loan if the loan is considered a qualified mortgage.
What is 2% of the outstanding balance?
If a purchase loan closes on January 20th, this is how many days of per diem interest must be collected to put the loan on schedule.
What is 12?