Mortgage

regulations cheat sheet pdf

Mortgage regulations list. Home loan key fact sheet regulations. Mortgage acronym cheat sheet.

Mortgage regulations cheat sheet pdf Mortgage lenders are required to comply with several federal and state laws and regulations, which can be complex. As such, we have developed this mortgage regulations cheat sheet including common regulations like the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA) and the Fair Credit
Reporting Act (FCRA).Unofficial redline of the 2021 mortgage servicing COVID-19 final rule. Table listing the Bureau's mortgage servicing proposed and final rules. Small servicers and key provisions of the 2016 mortgage servicing rules.

Factsheet on delinquency and the 2016 mortgage servicing rules.wants to make a Qualified Mortgage will have to follow common sense rules: § A Qualified Mortgage is a loan a borrower should be able to repay. Beginning on January 10, 2014, lenders making virtually any residential mortgage loan will have to assess a borrower’s ability to repay the
loan. A Qualified Mortgage is presumed to meet this .Use this list of the top 11 mortgage acronyms and abbreviations as a guide to help you in your military mortgage research and meetings with a trusted mortgage lender. APR: Annual Percentage Rate; ARM: Adjustable-Rate Mortgage; DTI: Debt-to-Income; FRM: Fixed-Rate Mortgage; LE: Loan
Estimate; LT: Loan Term; LOX: Letter of Explanation; LTV: Loan .Here you can access electronic copies of the current, complete versions of all CFPB regulations published in the electronic Code of Federal Regulations (eCFR). The eCFR is updated regularly and is an unofficial compilation of both CFR material and Federal Register amendments.115 S.
LaSalle Street, Suite 3300 • Chicago, IL 60603-3801 • T: 312.553.4600 • F: 312.683.2373 • www.bai.org Regulation Cheat Sheet Regulatory Title Also Known As Location Description.Our Mortgage Quality Control Plans and Mortgage Policies and Procedures comply with Consumer Financial Protection Bureau (CFPB), Fannie Mae (FNMA), Freddie
Mac (FHLMC) and FHA rules. This is a compliance management system, and you can choose a package that meets your business model - correspondent, lender, credit union, bank or mortgage broker.The goal of NMLS is to improve mortgage, consumer finance, debt, and money services industry supervision, heighten communication across states,
increase consistency in licensing requirements, and automate processes to the greatest degree possible1. Seller’s mortgage loan application with Borrower 2. Seller description of transaction, including: • Mortgage transaction narrative analysis • Seller's pro forma property financial statements • Property inspection documentation 3. Certified
Organizational Charts for Borrower, Guarantor (not in Borrower’s organizational.Easy Do-It-Yourself Mortgage Loan Documents. Takes 5-10 Minutes. Create Now.
Document a Financial Agreement Between a Lender and a Borrower.Home Mortgage Disclosure Act (HMDA) as implemented by the Consumer Financial Protection Bureau’s Regulation C, 12 CFR Part 1003 (Regulation C). The purpose of this Guide is to provide an easy-to-use summary of certain key requirements. This Guide does not provide detailed
information about the HMDA submission process, or.Mortgage Lending. Reference materials related to mortgage lending, including credit, products, and services related to mortgages. Specific areas of focus include the Truth in Lending Act (TILA), the Ability-to-Repay/Qualified Mortgage (ATR/QM) Rule, the Real Estate Settlement Procedures Act
(RESPA), the TILA-RESPA Integrated Disclosure (TRID Learn Mortgage online at your own pace. Start today and improve your skills. Join millions of learners from around the world already learning on Udemy.22 Years in Business Easy to Use on Any Device Easy Step-by-Step Process.The CFPB amended Regulations X and Z, to implement provisions
of the Dodd-Frank Act regarding mortgage loan servicing. Specifically, the Regulation X amendments implement Dodd-Frank Act sections addressing servicers’ obligations to correct errors asserted by mortgage loan borrowers; to provide certainA mortgage is a legal instrument of the common law which is used to create a security interest in real
property held by a lender as a security for a debt, usually a mortgage loan. Hypothec is the corresponding term in civil law jurisdictions, albeit with a wider sense, as it also covers non-possessory lien . A mortgage in itself is not a debt .Transfer of Servicing Cheat Roll: 08/23/2022: Appraisal Flowchart: 08/09/2022: Appraisal Delivery Flowchart:
07/27/2022: Lien Lending Disclosures Scheduling Chart: 07/07/2022: Regulation B Application Decision Litigation Flowchart: 11/10/2021: TRID Loan Intention Cheat Roll: 12/23/2020: Regulation Z Business Day Matrix: 10/29/2020: TRID Rente .4 ABA’s Quick Reference Guide to Banking Laws and Regulations Table of Contents Home Mortgage
Disclosure Act (HMDA) . . . . . 41 Internal Revenue Code Information.Our Mortgage Cheat Sheet focuses on the key questions that borrowers have when getting a mortgage for the first time. The cheat sheet offers insightful explanations, helpful mortgage process recommendations and links to relevant resources on FREEandCLEAR. All rights
reserved. Unauthorized reproduction, in whole or in part is strictly prohibited. Articles by: Richey May, Sep 09, 2021 Mortgage lenders are required to comply with several federal and state laws and regulations, which can be complex. As such, we have developed this mortgage regulations cheat sheet including common regulations like the Fair
Housing Act (FHA), the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA). Because of the complexity of these regulations, many lenders turn to us at Richey May & Co. for compliance and risk services. Achieving compliance and managing risk is a collaborative effort, and we help clients in the most highly regulated
environments feel confident in their operations and strategies. Table of Contents Mortgage Lender vs. Mortgage Originators To understand mortgage lender compliance, it is essential to distinguish between mortgage lenders and mortgage originators: What Are Mortgage Lenders? A mortgage lender is a mortgage bank or financial institution
that lends funds to the borrower and is repaid the debt. The obligation to cover the price of the property is initially assigned to the lender at the settlement or immediately following the settlement. Lenders must follow borrowing guidelines to verify a borrower’s creditworthiness and ability to pay back a loan. They set the interest rate, terms and
repayment schedule of a mortgage. There are many different types of lenders: Direct lenders: A direct mortgage lender originates loans with their own funds or by borrowing the funds from elsewhere. Retail lenders: A retail lender offers loans to consumers directly.Portfolio lenders: A portfolio lender funds a borrower’s loan with their own
funds.Warehouse lenders: A warehouse lender funds loans for other mortgage lenders through short-term funding.Wholesale lenders: A wholesale lender is a bank or other financial institution that doesn’t work with consumers directly, but it originates, funds and sometimes services loans.Hard money lenders: A hard money lender is typically an
individual or private company with substantial cash reserves and is commonly the choice for a borrower who wants to flip a home.Correspondent lenders: A correspondent lender is the initial lender that makes the loan and may also service the loan. Regardless of the services lenders offer, most are still required to comply with regulations. What Are
Mortgage Originators? The mortgage originator is an individual or institution that accepts the mortgage loan application or offers the terms of a mortgage loan and negotiates the terms with the would-be borrower. As the name suggests, originators are the original mortgage lenders and can be mortgage bankers or mortgage brokers. Originators
play a role in the primary mortgage market and work with loan processors and underwriters from the application to closing, gathering the necessary documents and guiding the borrower’s file through every step of the approval process. The originator is essentially an intermediary between borrowers and lenders, and they are not in control of the
borrowing timeline, guidelines or final approval. Truth in Lending Act and Real Estate Settlement Procedures Act A crucial part of regulatory compliance is understanding whether a loan is subject to the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).
With their combined regulations, TILA and RESPA impose several disclosures and compliance obligations on a mortgage lender, such as: The Home Ownership and Equity Protection Act (HOEPA)The Ability-to-Repay/Qualified Mortgage (ATR/QM) RuleThe Loan Originator Compensation (LO Comp) RuleThe TILA-RESPA Integrated Disclosure (TRID)
These requirements won’t apply to loans exempt from TILA and RESPA coverage. If a lender incorrectly categorizes a loan as exempt, this could lead to stiff penalties. Accordingly, a lender should be careful and pay close attention when determining whether RESPA and TILA apply to a loan. TILA The Truth in Lending Act ensures consumers are
protected from unfair and inaccurate credit card practices and credit billing. Under TILA, a lender must provide consumers with loan cost information that can be used for comparison shopping. The act specifies which information needs to be disclosed to borrowers before credit can be extended, such as the loan term, total costs and the annual
percentage rate (APR). Typically, TILA applies to an extension of consumer credit that is used for a household, family or personal purpose. Certain kinds of credit extensions are exempt under TILA. For a business-purpose lender, you should consider two crucial TILA exemptions: A loan to a non-natural person is exempt, meaning TILA won’t apply if a
loan is extended to an entity rather than an individual.A loan primarily for a commercial or business purpose is exempt, though there are some nuances to this exemption. To determine whether a loan is used for a business purpose, the creditor should evaluate the following factors: The transaction’s sizeTo what degree the borrower will manage the
acquisitionThe statement from the borrower about the purpose of the loanThe relationship of the acquisition to the borrower’s primary occupationThe ratio of the borrower’s total income to the income from the acquisition For a rental property not occupied by the owner, a loan to acquire, maintain or improve this type of property will always be
considered a loan for business purposes. RESPA In 1975, the Real Estate Settlement Procedures Act became effective. RESPA was implemented to prohibit kickbacks, restrict the use of escrow accounts and eliminate abusive practices in the process of a real estate settlement. RESPA also provides sellers and homebuyers with disclosures on complete
settlement costs. Under RESPA, a home loan lender must provide borrowers with disclosures concerning settlement services, consumer protection laws and real estate transactions. RESPA applies to most refinances, purchase loans, equity lines of credit and property improvement loans. The exemptions under RESPA differ.
RESPA’s implementing regulation is Regulation X and doesn’t include an exemption for loans borrowed by non-natural persons. However, under RESPA, a loan primarily used for a commercial or business purpose is exempt, and Regulation Z defines how the determination is made for loans to non-natural persons. Federal Law Considerations Fair
lending laws are considered regardless of whether a loan is being acquired for an investment property and whether the borrower is an individual or corporate entity. Even if a loan is exempt from RESPA and TILA, other consumer financial laws could still be applicable. Some of the federal laws that affect mortgage lenders include those listed below.
Please note that federal regulations can change frequently and this list is not fully comprehensive. Always consult a compliance professional with regard to regulatory compliance. 1. Fair Housing Act (FHA) The FHA applies to any entity or person whose business engages in transactions related to residential real estate, including the purchasing or
making of loans or offering other financial assistance. Other financial assistance can be for a loan secured by residential real estate or for the purchase, improvement, construction, maintenance or repair of a dwelling. Additionally, the FHA applies to the appraising, brokering or selling of residential real property.

2. Equal Credit Opportunity Act (ECOA) Similar to the FHA, the ECOA applies widely to business and consumer credit, imposing notice and nondiscrimination requirements to every type of credit. In some limited circumstances, the FHA and ECOA can both apply to the creditor’s assignees and purchasers. Under the ECOA, discrimination is prohibited
in any part of a credit transaction. Discrimination based on any of the following is prohibited: SexAgeReligionRace or colorMarital statusNational origin Due to the collateral of the loan rather than the loan’s purpose, other requirements may come into play. Under the ECOA, the valuation requirements require creditors to furnish a copy of the
appraisal and other valuations to applications and apply to any credit applications to be secured by a first lien, regardless of whether the credit is for a consumer or business purpose. 3. Fair Credit Reporting Act (FCRA) The FCRA doesn’t govern commercial or business credit reports, but it does impose adverse action and permissible purpose
requirements on users of consumer reports. If a lender obtains consumer reports on co-applicants, guarantors and principals, it should be mindful that the act may still apply if a consumer report is used with a commercial or business transaction. 4. Servicemembers Civil Relief Act (SCRA) The Servicemembers Civil Relief Act (SCRA) was designed to
relieve servicemembers of some financial burdens during a period of military service. This federal law provides protections for a military member who is entering active duty and covers several financial issues, such as: EvictionsPrepaid rentLife insuranceHealth insuranceSecurity depositsRental agreementsAutomobile leasesIncome tax
paymentsInstallment contractsMortgage foreclosuresMortgage interest ratesCredit card interest ratesCivil judicial proceedings The Attorney General can file a federal lawsuit under the SCRA against any entity or person who engages in a practice or pattern of violating this law. 5. Electronic Fund Transfer Act (EFTA) The Electronic Fund Transfer
Act (EFTA) protects consumers during the electronic transfer of funds (EFTs), including through ATMs, point-of-sale terminals, automatic withdrawals from bank accounts and the use of debit cards. This act was enacted after the use of ATMs increased to offer more protection to consumers. The EFTA also provides the means to correct transaction
errors, along with limiting the liability that results from a stolen or lost card. 6. Home Mortgage Disclosure Act (HMDA) Another federal law consideration is the Home Mortgage Disclosure Act (HMDA). Under the implementing regulation of HMDA, Regulation C, an open-end line of credit or a closed-end mortgage loan made primarily for business
purposes is considered an excluded transaction. Mortgage companies must report data to their regulators that illustrates whether they provide credit in the area where their offices are located. Additionally, this data enables government officials to target investment dollars to locations that most need growth investments. However, this exclusion
doesn’t apply if the line of credit or loan meets the definition under Regulation C of a home improvement loan, home purchase loan or refinancing.
As a result, an open-end line of credit or a closed-end mortgage loan to improve, purchase or refinance a multifamily dwelling or single-family investment property is not excluded from HMDA reporting on the grounds of a business purpose.

7. Home Ownership and Equity Protection Act (HOEPA) In 1994, HOEPA was established to amend the TILA to prevent improper practices in closed-end home equity loans and refinances with high fees or high interest rates. Under the HOEPA, mortgages should provide the consumer with additional information if they are buying a high-cost home.
HOEPA covers various types of mortgages, including: RefinancePurchase-moneyOpen-end credit plansClosed-end home equity loans 8. Flood Insurance The location and type of collateral determine how flood insurance laws may apply, regardless of the loan’s business purpose. The Flood Insurance Reform Act provides disincentives that discourage
property owners from living in an area prone to floods. Under this act, flood insurance premiums are tied to flood risk, which means property owners in a flood-prone area will likely pay higher premiums. According to this federal law, lenders must use flood insurance maps to determine whether a property a borrower wants to buy is in a flood plain. If
so, the borrower needs to purchase flood insurance as added protection for their investment interest. 9. SAFE Act The Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act was enacted on July 30, 2008, and mandates a nationwide licensing and registration system for residential mortgage loan originators (MLOs). The goal of the SAFE Act
was to increase accountability and consumer protection in the mortgage industry as overseen by the Consumer Financial Protection Bureau (CFPB). It requires MLOs to register and renew an annual unique identifier, also known as an NMLS number. State licenses are also required in the states where that MLO can process mortgage applications. In
many cases, these identifiers are required to be listed in a specific manner on advertisements and marketing materials. 10. False Claims Act The False Claims Act protects the federal government — and by extension, the taxpayer — from paying out agency money for false or fraudulent claims. In the context of mortgages, this typically applies
to FHA or Housing and Urban Development (HUD) programs, as these are backed by the federal government via those agencies.
In this context, lenders must ensure that loans they originate under these programs conform to the guidelines set for that particular loan type. Attempts to get loans covered by federal insurance when they don’t meet the guidelines can result in a DOJ investigation and a financial penalty. 11. Appraiser Independence Requirement (AIR) Appraiser
Independence Requirements were developed by the Federal Housing Finance Agency (FHFA), Fannie Mae, Freddie Mac and others and went into effect in 2010. AIR requires appraisers to be licensed by the state where they practice and covers conventional, single-family homes sold to Fannie Mae or Freddie Mac. AIR essentially requires lenders and
Realtors to remain separate from the appraisers to prevent the relationship — and desire to close the loan for a certain price — from affecting the quality of the appraisal report and home valuation. Many lenders use a pre-approved list where someone that is not a member of the loan production staff selects an appraiser to complete the home review
in the target closing time of the loan. Freddie Mac provides a convenient FAQ for definitions and clarification involved with this regulation. 12. Anti-Money Laundering (AML) Many financial institutions, including mortgage bankers, must comply with the Bank Secrecy Act (BSA) and its Anti-Money Laundering rules.
This helps the Financial Industry Regulatory Authority (FINRA) set standards to monitor and prevent possible cases of money laundering and other suspicious activity. FINRA Rule 3310 sets minimum standards for AML programs for lenders that are spelled out in its guidelines. Many lenders choose to outsource these programs, including with Richey
May. State Law Considerations Along with federal law considerations, there are also state-by-state regulations that affect a mortgage lender. In some states, a mortgage lender is required to obtain licensure to make loans secured by residential real property, no matter whether the loans are for a business or consumer purpose. Since the requirements
vary from state to state, a mortgage lender should thoroughly review and consider the licensing requirements of each jurisdiction in which they conduct business. Other state laws that govern several parts of residential mortgage lending may apply to loans with a business purpose. A mortgage lender should always be mindful of state laws that
govern predatory lending and high-cost loans, which tend to be more expansive than HOEPA. Even though these laws usually apply to consumer-purpose loans or owner-occupied properties, this is why it is crucial for a mortgage lender to verify and document a transaction’s purpose. Get Help With Mortgage Lending Compliance Staying in
compliance with regulations is important for any business, especially for mortgage lenders.
At Richey May, we can be a valued financial advisor. We are a full-service accounting and business advisory firm, and we focus on providing our customers the best possible service. We are responsive, honest and dependable. As a team, we will work together to help you achieve success. Our services include mortgage consulting, assurance, financial
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