Terms Row 1
A refusal to grant credit in substantially the amount or on substantially the terms requested in an application unless the creditor makes a counteroffer (to grant credit in a different amount or on other terms) and the applicant uses or expressly accepts the credit offered; (ii) A termination of an account or an unfavorable change in the terms of an account that does not affect all or substantially all of a class of the creditor's accounts
Adverse Action
The Rule requires that financial institutions and creditors implement a written identity theft prevention program.
Red Flags Rule
It is a government-sponsored entity regulated by the Federal Housing Finance Agency that operates in the secondary mortgage market to purchase mortgage loans from lenders. (FHLMC)
Federal Home Loan Mortgage Corporation (Freddie Mac)
The act of pledging property to be the security for a loan without giving up possession of it (as with a mortgage).
Hypothecation
The government's constitutional power to take (appropriate or condemn) private property for public use, as long as the owner is paid just compensation. (Government taking of private land is called condemnation.)
Eminent Domain
Part of the Housing and Community Development Act of 1992, created a shift in money laundering policy by focusing less on the investigative power of federal agencies and placing more compliance responsibility on financial institutions.
Annunzio-Wylie Anti-Money Laundering Act
implements the Privacy of Consumer Financial Information. It requires financial institutions to provide certain privacy notices and to comply with certain limitations on the disclosure of nonpublic personal information to nonaffiliated third parties.
Regulation P
implements the Truth in Lending Act to protect people when they use consumer credit.
Regulation Z
A tool that mortgage brokers can use to lower the upfront closing costs for a borrower.
Yield Spread Premium (YSP)
A contract clause that gives the lender the right to declare all outstanding payments immediately due upon a default by the borrower.
Acceleration Clause
requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering.
Bank Secrecy Act (BSA)
This occurs when the consumer becomes contractually obligated to the creditor on the loan, not, for example, when the consumer becomes contractually obligated to a seller on a real estate transaction.
Consummation
Occurs when a mortgage loan is funded by an advance of loan funds and an assignment of the loan to the same entity advancing the funds.
Table Funding
Loan program through the U.S. Department of Agriculture that either guarantees loans made by approved private lenders or makes direct loans if no local lender is available.
Section 502 Loan
The transfer of ownership or an interest in property from one person to another, by any means.
Alienation
any service provided in connection with a prospective or actual settlement, including origination of a federally related mortgage loan (including, but not limited to, the taking of loan applications, loan processing, and the underwriting and funding of such loans) or rendering of credit reports and appraisals.
Settlement Service
The termination of a contract with each party giving anything acquired under the contract back to the other party
Rescission
A financing instrument that evidences a promise to pay a specific amount of money to a specific person within a specific time frame. A written, legally binding promise to repay a debt.
Promissory Note
A written agreement between lienholders on a property that changes the priority of mortgages, judgments, and other liens.
Subordination Agreement
A Certificate of Release or Discharge from Active Duty issued by the Department of Defense.
DD-214
provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce.
Electronic Signatures in Global and National Commerce Act
includes provisions in Title V to protect and regulate the disclosure of consumers' personal financial information. There are three principal parts to the Title V privacy requirements: Safeguards Rule, Pretexting Provisions, and Financial Privacy Rule.
Gramm-Leach-Bliley Act
An action in which one party agrees to take over payments of another party's debt, with terms of the note staying unchanged.
Assumption
A mortgage loan that occurs between the termination of one mortgage and the commencement of another.
Bridge Mortgage
Person in a position of trust, held by law to high standards of good faith and loyalty.
Fiduciary