(3) Federal Mortgage-Related Laws

3.1- What is Real Estate Settlement Procedures Act (RESPA), 12 CFR Part 1024 (Regulation X)

3.2 What is the origin and purpose of RESPA?

3.3- What are the prohibitions, limitations and exemptions set by RESPA

3.4- What Types of loans is RESPA applicable to?

3.5- What are Settlement services ?

3.6- What disclosures is required to the customer for an MLO who is also a broker?

3.7- What are Bona fide discount points and its application during a mortgage loan origination?

3.8- What information is Required from a borrower that must be included on an application (Regulation X)?

3.9- What is the role and function of third party settlement service providers

3.10- What steps are required during the foreclosure process?

3.11- What is the Initial escrow statements?

3.12- What Changes can be made to the HUD-1/Good Faith Estimate?

3.13- What is the process of Issuing a Good Faith Estimate when all the information has not been provided?

3.13- What is the Equal Credit Opportunity Act (ECOA), 12 CFR Part 1002 (Regulation B)?

3.14- What Factors cannot be used to discriminate?

3.15- How is the borrower notified of action taken?

3.16- What are General permissible acts under the Equal Credit Opportunity Act?

3.17- Under what Circumstances is it acceptable to deny credit/loan?

3.18- Components of a “notice of adverse action”

3.19- What is the Definition of “adverse action”

3.20- What are the General provisions of Regulation B ?

3.21- What are the Exceptions to providing the appraisal report?

3.22- What are “Prohibited Factors” ?

3.23- What are Required disclosures when an application is denied?

3.24- What Acceptable terms can be used to describe marital status?

3.25- What procedure should be adopted to issue an Adverse action notice, including when multiple applicants/guarantors are on the loan request?

3.26- What is the Definition of “elderly” ?

3.27- What are “Disparate treatment” scenarios?

3.28- What are Record retention timelines?

3.29- What are the Requirement for a co-signer?

3.30- What Factors are considered when determining creditworthiness?

3.31- What are the Types of acceptable income considered during a loan review?

3.32- How is a Request for missing application information made and communicated?

3.33- Explain Adverse action scenarios

3.34- Information required on a loan application

3.35- What are the charecteristics of Adverse action?

3.36- What is the required Timeframe for sending an adverse action to an applicant?

3.37- What are the Actions an MLO should take when a borrower refuses to provide ethnic, race or gender information • Truth-in-Lending Act (TILA), 12 CFR Part 1026 (Regulation Z) ?

3.38- What is “Notice of right to rescind” ?

3.39- What are Permissible fees and finance charges?

3.40- What are guidelines and requirements for Advertisement?

3.41- What is the core concepts of the Truth-in-Lending Act?

3.42- What is Total points and fee threshold?

3.43- What is the Definition of “finance charge” ?

3.44- What is the Definition of “annual percentage rate” ?

3.45- What Loans are covered by the Truth-in-Lending Act?

3.46- What is the Definition of a “business day”?

3.47- What are Permissible annual percentage rate tolerances?

3.48- What is the Definition of “dwelling”

3.49- What is the Definition of “residential mortgage loan”

3.50- What is the Definition of “business day” in a mortgage rescission

3.51- What are Record retention timeframes?

3.52- How are “seller contributions” Classified?

3.53- What are Refinancing scenarios with rights to rescind certain types of transactions • Home Ownership and Equity Protection Act – High-Cost Mortgage, HOEPA Sections 32 and 12 CFR Part 1026 ?

3.54- What is Minimum term for a balloon payment?

3.55- What are Examples of “covered loans” ?

3.56- What is allowed under HOEPA

3.57- What are the Limitations on broker fees?

3.58- What is the Entity that enforces HOEPA?

3.59- What Types of loans/lines of credit are subject to HOEPA • Higher Priced Mortgage Loans (12 CFR 1026.35) ?

3.60- What is the Definition of “high priced/cost mortgage”?

3.62- What are the Prohibitions within “high priced” mortgages?

3.63- Explain Loan Originator Compensation relating to Refinance mortgage loans • (12 CFR 1026.36(d)) ?

3.64- What is the compensation of MLO based upon?

3.65- What are the The rules for who may compensate an MLO • TILA-RESPA Integrated Disclosure Rule (TRID) (a.k.a “Know Before You Owe”) ?

3.66- What are the Prohibitions on discrimination?

3.67- What are the timeframes on Disclosure?

3.68- What is the Section on disclosure where origination charges are reflected?

3.69- What is the Affiliated Business Disclosure Special Information Booklet?

3.70- Where is the Borrower information included on Regulation Z?

3.80- What is the Record retention?

3.81- What are the Required disclosures ?

3.82- What is the Timing of disclosures provided to an applicant?

3.83- What are the Types of permissible fees and finance charges?

3.84- What are the Circumstances under which a Loan Estimate may be amended?

3.85- Explain General information about the TILA-RESPA Disclosure Rule

3.86- What are Examples of “change of circumstance”?

3.87- What is the Borrower information that is included on an application?

3.88- What is the Information that must be disclosed to consumers upon request ?

3.89- What is an annual percentage rate?

3.90- What Party is required to provide the Loan Estimate?

3.91- What Types of loans are covered under TILA?

3.92- What Actions an MLO must take when there is incomplete information on a TRID disclosure?

3.93- Explain a Scenario in violations of TRID

3.94- What is A borrower’s right to rescission?

3.95 What is the Definition of loan consummation?

3.96- What is Information that must be disclosed on a Loan Estimate?

3.97- Explain the Facts about Loan Estimate

3.98- What are the requirements regarding Informing a borrower of other loan considerations?

3.99- How are the Charges/fees disclosed?

3.100- What Information must be included on a Closing Disclosure?

3.101- What Information must be disclosed in an annual escrow statement?

3.102- What is the definition of Acceleration?

3.103- Explain The right to receive an appraisal report • Home Mortgage Disclosure Act (HMDA), 12 CFR Part 1003 (Regulation C)

3.104- Explain Mortgages in reportable data

3.105- What is the HMDA definition of “dwelling” ?

3.106- What Information is included in borrower data?

3.107- What is the Information that a borrower must include on an application ?

3.108- What Information an MLO should not inquire?

3.109- Explain Information provided by the borrower regarding the right of refusal • Fair Credit Reporting Act (FCRA)/Fair and Accurate Credit Transactions Act (FACTA) 15 USC § 1681 et seq.

3.110- What is the Definition of a “fraud alert”?

3.111- What is the Information included in a “consumer report” ?

3.112- What re Permissible times when a credit report may be accessed?

3.113- What is the Requirement to develop policies and procedures regarding identity theft?

3.114- What is the Definition of “creditor”

3.115- What is the Information included in a FACTA disclosure?

3.116- What is the Length of time a bankruptcy will show on a credit history?

3.117- What are the Credit score evaluation methods • FTC Red Flag rules, 16 CFR Part 681 ?

3.118- What are the Parties subject to “red flag” rules?

3.119- What is the Enforcement authority for “red flag” rules • Bank Secrecy Act/Anti-Money Laundering (BSA/AML) ?

3.120- What are the Requirement that companies protect consumer information?

3.121- What are the Facts about Suspicious Activity Reports (SARs) ?

3.122- What are the Circumstances that require filing a SAR?

3.123- What are SAR privacy requirements• Gramm-Leach-Bliley Act (GLB) – Privacy, FTC Safeguard Rules and Do Not Call ?

3.124- What is on-public information regarding a customer?

3.125- What is Permissible use of non-public information regarding a customer?

3.126- What is the Purpose of Act

3.127- What is the Requirement for written privacy policy disclosures ?

3.128- What are Acceptable delivery methods for a privacy notice?

3.129- What are Permissible hours for telephone calls ?

3.130- What is the requirement for Written policies for maintaining Do-Not-Call lists?

3.131- What Precautions should be taken to protect customer information?

3.132- What is the Purpose of the National Do-Not-Call Registry ?

3.133- What are Permissible solicitation scenarios?

3.134- How should a Do-Not-Call request be handled?

3.135- Retention of information after a solicitation • Mortgage Acts and Practices – Advertising, 12 CFR Part 1014 (Regulation N)

3.136- What is the requirement for Advertisements referring to specific credit terms?

3.137- What is the Length of time required to retain advertisements ?

3.138- What Information is required to be included in an advertisement?

3.139- What are the Triggering terms that require additional disclosure?

3.140- What is the Violations of the Act • Electronic Signature in Global and National Commerce Act (E-SIGN Act) ?

3.141- What are the Required ESIGN disclosures?

3.142- How is the Borrower’s consent obtained regarding access to information in electronic format?

3.143- What are the Requirements for maintaining records in electronic format?

3.144- What are the Ways to verify a borrower’s identity • USA PATRIOT Act?

3.145- What is the Primary purpose of the Act?

3.146- What are the Major functions of the Act?

3.147- What is the Confidential nature of filing reports ?

3.148- What are the Ways to verify a borrower’s identity?

3.149- What Parties are subject to the Act?

3.150- What is the Requirement to have a Customer Identification Program in place and verifying the identities of borrowers • Homeowners’ Protection Act (Private Mortgage Insurance (PMI) Cancellation Act)?

3.151- What are the Major functions of the Act?

3.152- What Documents must be provided to a borrower at loan consummation • Dodd-Frank Act ?

3.153- What are the Re-financing situations?

3.154- Explain Law oversight over TRID

3.155- What are the Independent appraisal requirements ?