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Definition
Housing and Community Facilities Programs
Part of USDA Rural development provides loans & Grants for housing and community facilities. |
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Term
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Definition
Established in 1979
Federal Financial Institutions Examination Council
Purpose is to create uniform reporting systems.
Empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions.
FRB, FDIC, NCUA (National Credit Union Admin),
OCC (Office of the Comptroller of the Currency),
CFPB |
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Definition
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Term
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Definition
| National Credit Union Administration |
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Term
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Definition
| Consumer Financial Protection Bureau |
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Term
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Definition
Financial Institutions Regulatory & Interest Rate Control Act
1978.
Established FFIEC |
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Term
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Definition
Mortgage Disclosure Improvement Act - 2008
Amendment of Regulation Z. Truth in Lending.
*Adds disclosure requirements for non-purchase money transactions.
- home refinance & non HELOC - home equity loans
- loans secured by dwelling
- HELOC's not covered |
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Term
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Definition
Truth in lending Act. 1968
Governed by CFPB |
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Term
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Definition
| The regulations implementing the TILA of 1968 |
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Term
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Definition
Home Mortgage Disclosure Act -1975
AKA Regulation C
Requires Financial institutions to maintain annually disclose data about home purchases, pre-approvals, home improvement & refinancing applications for 1-4 unit & multifamily dwellings. |
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Term
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Definition
| It is the Office for the Comptroller of the Currency |
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Term
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Definition
| HMDA (Home Mortgage Disclosure Act) |
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Term
| Who enforces GLB Privacy Act |
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Definition
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Term
| What is the Gramm-Leach-Bliley Act? |
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Definition
Known as the Privacy Act - Enacted 1999
Requires Financial institutions to insure the security & confidentiality of customer records.. |
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Term
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Definition
Secure And Fair Enforcement Act: 2008
Also known as "Title V"
Enforced by CFPB (2010)
Maximum penalty $25k per incident
a Federal registration system ("Federal Registry") for individual employees of Agency-regulated institutions who engage in the business of residential mortgage loan origination. |
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Term
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Definition
Safe And Fair Enforcement (licensing) Act: 2008
Enforced by CFPB
a Federal registration system ("Federal Registry") for individual employees of Agency-regulated institutions who engage in the business of residential mortgage loan origination |
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Term
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Definition
Fair and Accurate Credit Transactions Act: 2003
Enforced by FTC
Credit reporting, identity theft, Red flag dection |
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Term
| What are FACTA Red Flag rules? |
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Definition
Implemented 10/31/07
This Section requires that all organizations subject to the legislation must develop and implement a written "Identity Theft Prevention Program" to DETECT, PREVENT and MITIGATE identity theft in connection with the opening of certain new and certain existing accounts. |
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Term
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Definition
Home Owners Protection Act: 1998
Enforced by FTC
AKA - PMI Cancellation act
Covers single family homes, principle dwelling |
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Term
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Definition
| With PMI, the lender can recover costs associated with the resale of foreclosed property, and accrued interest payments or fixed costs, such as taxes or insurance policies, paid prior to resale. |
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Term
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Definition
HPA - Home Owners Protection Act of 1998
When the principal balance of the mortgage is scheduled to reach 78% of the original value of the secured property. (based solely on the amortization schedule) |
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Term
| What is the Flood Disaster Protection Act also known as? |
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Definition
Regulation H : 1968
Enforcement: FRB |
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Term
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Definition
Federal Housing Finance Agency (FHFA)
is the conservator for Fannie & Freddie & responsible for their daily operations. |
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Term
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Definition
Federal National Mortgage Association Founded 1938
Fannie Mae
Provides funding to the housing market.
Expands the secondary market by securitizing mortgages, allowing reinvestment of assets into more lending. |
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Term
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Definition
Federal Home Loan Mortgage Company Charted 1970
Freddie Mack
Purchase Mortgage Loans & issuing guaranteed mortgage-related securities |
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Term
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Definition
Housing and Economic Recovery Act of 2008
Title V - SAFE Act
Focused on sub-prime lending |
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Definition
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Term
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Definition
Registered loan Originator
is an lo
is an employee of a depository institution or regulated by the Farm Credit Act.
Is registered with and maintains a unique id through the NMLS. |
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Term
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Definition
State Licensed Originator
- Loan Originator
- Not an employee of depository or subsidiary or regulated by Farm Credit Admin |
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Term
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Definition
Annual Percentage Rate
This includes all finance charges, not just interest.
Allows comparison of loans like for like. |
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Term
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Definition
The cost of consumer credit as a dollar amount.
It is the total of:
- Prepaid finance charges
- Charges paid over the term of the loan (Total interest, Mortgage Insurance Premiums) |
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Term
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Definition
A pre-paid finance charge.
Direct loan charges paid by the borrower, including:
- Loan origination
- PMI, FHA UFMIP (upfront mortgage insurance premium), VA funding fee, USDA guaranty fee
- Buy Downs
- Prepaid interest |
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Term
| What is the amount financed? |
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Definition
| The actual amount of credit the borrower will receive from the creditor. (The loan amount - PFC) |
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Term
| When must redisclosure occur? |
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Definition
TIL disclosure must be re-issued with corrections
If an event causes the APR changes more than 1/8 of 1% in a regular transaction or
1/4 of 1% in an irregular transaction. |
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Term
| what is an Irregular transaction? |
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Definition
- odd first payment amount
- odd final payment amount
- "odd days" in the first payment period.
For everything else, there's Volume II. This includes multiple advances (when dates and amounts are known), multiple payment streams (teaser ARMs and loans with PMI, for example), and multiple occurrences of "odd days" (school teacher and other loans with "skips", for example). |
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Term
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Definition
| ECOA and Regulation B (implements) prohibit discrimination against credit applicants based on race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. These factors are defined in Regulation B as a “prohibited basis.” |
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Term
| What is section 8 of RESPA? |
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Definition
Prohibits acceptance off Fee's, kickbacks, or anything of value in exchange for Referrals.
Fines to $10,000 and 1 year in prison. |
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Term
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Definition
Added to the federal Consumer Credit Protection Act in 1974
ECOA and Regulation B prohibit discrimination against credit applicants based on race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. These factors are described as “prohibited basis.” |
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Term
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Definition
Prohibits purchase of title insurance from a particular Title Ins Co.
Remedy can sue for 3X all charges. |
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Term
| What is RESPA section 10? |
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Definition
After closing protections in the form of annual escrow account analysis
1/12 of the total of all disbursements payable during the year.
Additionally, cushion of 1/6 of total dispersants for the year may be required. |
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Term
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Definition
| a form that provides you with basic information about the terms of a mortgage loan for which you have applied and estimated costs to you in acquiring the loan. |
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Term
| When does funding occur on a refi? |
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Definition
| Typically on the 4th day due to rescission. |
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Term
HPA
What is "good payment history"? |
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Definition
| (with respect to PMI) no payment 60 days past due during current 12month period beginning 24 months beef the mortgage reaches cancellation and didn't make a payment that was a 30 days past due during the 12 month period preceding the cancellation date. |
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Term
HPA
What is final termination |
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Definition
| The termination of PMI occurs when the loan doesn't qualify for earlier cancellation or termination. It takes place on the 1st of the month after the mid point of the loans amortization. |
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Term
HPA
What are high risk loans? |
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Definition
| Loans that do not meet conforming loan limits set by Fannie & Freddie. |
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Term
HPA
What are the 5 disclosures? |
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Definition
1) Fixed Rate Mortgage
2) ARM
3) High Risk Loans - PMI not required at midpoint of amortization.
4) Annual Disclosure
5) Notification of cancellation/termination within 30 days. |
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Term
HPA
What are HPA violation penalties? |
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Definition
- individual actions <= $2000
- Class action lessor of $500,000 or 1% the gross revenues of the liable entity. |
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Term
| How long is HPA statute of limitation? |
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Definition
| Action must brought within 2 years of discovery. |
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Term
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Definition
Housing & Economic Recovery Act 2008
Title V is SAFE
Created by CSBS (Conference of State Bank Supervisors) AARMR (American Association of Residential Mortgage Regulators) |
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Term
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Definition
| Uniform Individual Mortgage License/Registration consent form. |
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Term
HDMA
What institutions are covered by HDMA? |
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Definition
If on the preceding Dec 31st:
- Any that has assets in excess of published threshold
- A home or branch office in a metropolitan area
- Origination of at least 1 home purch or refi.
- The institution is federally insured or regulated or the loan was federally insured, guaranteed, or were intended for sale to Fannie or Freddie |
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Term
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Definition
Loan Application Register
Used to report HDMA data. |
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Term
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Definition
Metropolitan Standard Area
Urban area with pop >= 50,000 |
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Term
HDMA
What are violation penalties? |
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Definition
| Civil monetary for failing to report in a timely & accurate manor. |
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Term
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Definition
Fair Credit Reporting Act 1970
Ensures accuracy, fairness and privacy of consumers personal information.
Applies to any transaction using credit reports, investigations, VOE.
Enforced by: CFPB |
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Term
FCRA
What are CRA obligations |
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Definition
CRA Disclosures
CRA Notification to Users |
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Term
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Definition
- Certification of Permissible Purpose
- Notification of Adverse Action
- Notification of Adverse Action based on info from affiliate. |
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Term
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Definition
Mortgage Assistance Relief Services 2010
Enforced by FTC
Rules issued by FTC to prevent abuse of real MARS programs
Prohibit misrepresentations - (likelihood of particular results)
Prohibit Misleading consumers (implying affiliation etc) |
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Term
| What is the MARS Disclosure? |
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Definition
A notice describing the modifications between old and new lending terms. Must Include
principle
interest rate
# of payments
Monthly amount owed (break out)
Loan Term
Outstanding payments |
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Term
MARS
How long must data be retained |
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Definition
| 24 months from record creation |
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Term
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Definition
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Term
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Definition
Fraud Enforcement and Recovery Act 2009
Facilitates prosecution of those committing mortgage fraud |
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Term
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Definition
up to 20 years prison
Financial institute - up to $1,000,000.00 & 30 years in the pen |
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Term
| What is Money Laundering? |
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Definition
Hides illegally obtained funds from the source.
Fines $500,000 or 2x value of property & up to 20years in the pen.
Depositing more than $10,000 of fraudulently obtained money - fines & 10 years prison |
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Term
| What is the penalty for supplying fraudulent documents? |
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Definition
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Term
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Definition
GNMA
Government National Mortgage Association
- Government owned (not GSE)
- Primary function is to guarantee securities backed by (FHA, VA, & Rural Housing Service Loans)
- Does not guarantee or deal with in any other way with conventional loans |
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Term
| What is a warehouse lender? |
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Definition
Provide funds for "table funded" loans.
Often have "buy back" provisions for fraud. |
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Term
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Definition
Fair Housing Act
Prohibits discrimination based on:
race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. |
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