Federal Mortgage laws
This act ensures that borrowers receive disclosures about the real estate settlement process that prohibits kickbacks.
What is The Real Estate Settlement Procedures Act (RESPA)
This document must be provided to a borrower within three business days of loan application and outlines estimated costs.
What is the Loan Estimate?
This unethical lending practice involves targeting vulnerable borrowers with high-cost loans.
What is predatory lending?
Fannie Mae and Freddie Mac purchase these types of loans.
What are conventional/conforming loans?
This act ensures that creditors provide consumers with clear disclosure of the terms of credit.
What is the Truth-in-Lending Act (TILA)?
This law prohibits discrimination in credit transactions based on race, gender, or other protected characteristics.
What is the Equal Credit Opportunity Act (ECOA).
A borrower may cancel a refinance loan on their primary residence within this many days after closing.
What is three days?
The illegal act of deliberately falsifying income or employment details on a loan application.
What is mortgage fraud?
This mortgage product features an interest rate that can adjust periodically based on a benchmark index.
What is an adjustable-rate mortgage (ARM)?
Borrowers can request PMI cancellation when their loan balance reaches this percentage of the home’s original value.
What is 80%
This act mandates lenders to disclose the annual percentage rate(APR) and the total cost of borrowing.
What is the truth in lending act (TILA).
A mortgage loan originator must provide this document to borrowers when there is an affiliated business arrangement.
What is the Affiliated Business Arrangement Disclosure?
The practice of directing borrowers to a specific loan product based on personal gain rather than the borrower's needs.
What is steering?
This ratio compares a borrower’s total monthly debt payments to their gross monthly income.
What is the debt-to-income (DTI) ratio?
This regulation requires lenders to clearly and conspicuously disclose all relevant terms when a "trigger term" is used in advertising.
What is Regulation Z?
The "Know Before You Owe" rule is part of this integrated disclosure regulation.
The process where a loan officer verifies a borrower’s employment, assets, and credit history.
What is underwriting?
A lender refusing to provide loans in certain neighborhoods based on race or ethnicity is an example of this practice
What is redlining?
This government-backed mortgage program is designed for rural homebuyers.
What is the USDA loan program?
This law allows borrowers a three-day rescission period when refinancing their primary residence.
What is the Truth-in-Lending Act (TILA)?
What is the Bank Secrecy Act (BSA)
This type of mortgage allows borrowers aged 62 and older to access equity in their homes without making monthly payments.
What is a reverse mortgage?
Mortgage professionals must report suspicious transactions as part of their compliance with this act.
What is the USA PATRIOT Act?
A borrower with a loan-to-value (LTV) ratio above 80% is typically required to pay for this type of insurance.
What is private mortgage insurance (PMI)?
A mortgage broker giving an airline travel voucher to an attorney for introducing a customer would violate this act.
What is the Real Estate Settlement Procedures Act (RESPA)?