Term
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Definition
1) Enforced by the CFBP
2)Current: CFPB (Consumer
Financial Protection Bureau)
Legacy Regulator: HUD
(Housing and Urban
Development)
3) Eliminates kickbacks
(Section 8A) and referral
fees (Section 8B).
4) Covers all “Federally
related” real estate
transactions.
Covers 1st & 2nd mortgages
and related transactions on
principal residences of 1 to 4
family units.Includes purchase,
refinance, lender approved
assumptions, home
improvements, HELOCs
(Home Equity Line of
Credit), reverse mortgages,
time shares involving a lien,
Manufactured Homes
attached to property,
construction loans used to
purchase a lot.
Does not include cash
sales, seller held mortgages,
rental or business property,
construction loans without
permanent financing, or
homes with greater than 25
acres attached. |
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Term
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Definition
Current: CFPB (Consumer
Financial Protection Bureau)
Legacy Regulator: Federal
Trade Commission and
Federal Communications
Commission.
1)To provide for the
“availability of credit” to all
credit worthy applicants
without regard to any
discriminatory factors on a
prohibited basis (race, color,
religion, national origin, sex,
marital status, age, or that
the consumer receives public
assistance income.)
This applies to all credit
transactions.
2) A notice of adverse action
must be supplied within 30
days of application.
3)The consumer has 60 days
to request a reason for the
adverse action. Creditor must give a reasonBorrowers have the
opportunity to receive a copy
of appraisal reports they paid
for.
Inquiry into marital status
can only be done using the
following terms: married,
unmarried, separated. |
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Term
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Definition
Current: CFPB (Consumer
Financial Protection Bureau)
Legacy Regulator: Federal
Reserve Board
1. Covers all credit
transactions and requires a 3
business day “right to
rescind” on refinances of
primary residences.
2. Requires the APR to be
conspicuous on all
advertising.
3. Requires clear and
accurate information in all
advertising, and no misuse of
the term “fixed rate”. Must
offer terms that are actually
available.
4. Redisclosure is required
when APR is off by 1/8.
. Requires the Truth In
Lending disclosure (TIL) be
given w/in 3 business days
of applications and not less
than 7 business days before
closing. It must show:
a. The finance charge as a
dollar amount.
b. The APR as a percentage
of the net loan amount.
PROHIBITED ACTS:
1. Creditors cannot in any
way influence appraisers.
2. Servicers cannot delay
crediting consumer payments
and cannot “pyramid” late
fees.
To promote the informed
use of credit by requiring
early disclosure of the “costs
of credit” as defined by
Regulation Z.
Is included in the Consumer
Credit Protection Act
(CCPA) of 1968. |
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Term
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Definition
ENFORCING AUTHORITY
HOEPA is a 1994
amendment to Regulations Z
(TILA), Section 32 (High
Cost Loans)
To establish lending
prohibitions and require
additional disclosures for
certain “high cost” loans.
Prohibitions:
1. Cannot make the loan without
regard for ability to repay.
2. No negative amortization
3. No default interest rates.
4. No due on sale clause.
5. No balloons on loans less than 5
years in term.
6. No repayments that consolidate
more than 2 payments.
7. No documenting a closed-end
high cost loan as an open-end loan.
8. No prepayment penalties on
loans that adjust in the first 4 years
or on any loans longer than 24
months.
9. No refinancing a HOEPA loan
with another HOEPA loan within
12 months unless it is in the
borrower's best interest.
On these “high cost” loans
the lender must provide an
additional 3 business day
“cooling off” period (right of
rescission) and send a
disclosure stating:
1. Loan need not be
completed and that the
borrower has 3 business days
to terminate the transaction.
2. Warning that borrower
could lose their home and
any money put into it.
3. The APR, the regular
payment (including balloon),
and the loan amount
including credit insurance
premiums.
4. For variable rate loans,
that the rate and monthly
payment might increase and
state maximum monthly
payment possible.
1. Covers all closed-end
transactions (does not cover
HELOCs, reverse mortgages)
2. The APR exceeds the APOR by
more than:
• 6.5% for a first lien loan
• 8.5% for a first lien
dwelling and the loan
amount is less than
$50,000
• 8.5% for a subordinate
lien loan
Or total points and fees payable
exceed:
• A transaction with a loan
amount of $20,000 or
more 5% of the total loan
amount or
• A transaction with a loan
amount of less than
$20,000, the lesser of
eight percent of the total
loan amount or $1000
3. Penalties: All statuary and actual
damages, court costs, and attorney
fees. If the rescission is not
delivered in a timely manner, it
might allow the consumer to
rescind the loan for up to 3 years.
Current: CFPB (Consumer
Financial Protection Bureau)
Legacy Regulator: Federal
Reserve Board |
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Term
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Definition
ENFORCING AUTHORITY
None 1. Provides for termination
of PMI (Private Mortgage
Insurance) and applies to
conventional loans (not VA,
FHA, or USDA).
1. Cancels PMI
automatically when the
mortgage balance is paid
down to 78% of the original
value.
2. Can be canceled by
request: the lender must
consider canceling PMI for a
borrower whose balance is
80% of original value
(borrower must be current on
their payments and have no
other home loans).
3 Disclosure Requirements
1. With initial escrow
statement
2. With each annual escrow
statement.
3. Upon cancellation,
disclosing that PMI has been
canceled.
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Current: CFPB (Consumer
Financial Protection Bureau)
Legacy Regulator: Federal |
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Term
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Definition
COMMENTS ENFORCING AUTHORITY
None 1. To promote the privacy of
the home against unwanted
solicitation by telemarketing
and to restrict the practices
of direct telephone marketing
businesses.
2. Added the “Do Not Call”
registry, giving consumers
the right to opt-out of
receiving telemarketing calls.
3. Once on the “Do Not
Call” list, the consumer
remains on the list forever.
This includes cell phones.
1. There are some exempt
entities: charities, political
organizations and surveyors,
as long as they are not
selling goods or products.
2. Violations of the TSR are
considered an unfair and
deceptive act and carry
monetary and civil penalties
up to $16,000.
1. Companies must “scrub”
their databases no less than
every 31 calendar days and
establish internal company
do-no-call lists.
2. Allows companies to
recontact “established
customers” up to 18 months
after their last business
transaction.
3. Allows companies to
recontact consumers that
respond to mail campaigns
for up to 90 days after the
initial contact.
.
Current: CFPB (Consumer
Financial Protection Bureau)
Legacy Regulator: Federal
Trade Commission and
Federal Communication |
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