Laws - FACTA
FACTA, obtaining a credit report w/o authorization can result in a fine of up to what?
$5k and 1 year in JAIL
FCRA FREE Credit Report, When
The Fair Credit Reporting Act (FCRA) allows you to get a free credit report if adverse action was taken as a result of information in the credit report. Examples of adverse action include being declined or having your interest rate increased. You might also qualify for additional credit reports provided for by the FCRA. It allows you to get a free credit report if you are unemployed and seeking employment, receive welfare assistance or believe you may be a victim of fraud. If any of these circumstances apply, you should request your reports directly from each of the national credit reporting companies.
FACTA is primarily concerned w/ what
identity theft
FACTA became law when
2003
Do Not Call Registry, outbound callers must scrub their call lists every
31 DAYS NOT MONTHLY Since people can be added to and removed from the Do Not Call Registry at any time, outbound callers must scrub their call lists every 31 days.
To receive credit for earned child support it must be:
A court order or other legal obligation must be established in order for an individual to have child support considered as qualifying income. The most recent six months' worth of receipt must be documented along with evidence of continuance for a minimum of 36 additional months.
Self Employed
Any individual who has a 25% or greater ownership interest in a business is self- employed Income going up last 2 year avg. Income going down, the lower income
FNMA
Federal National Mortgage Association (FNMA or Fannie Mae), in 1938, increased the liquidity in the market and allowed for more money to become available for lenders
Pretexting
GLB FINANCIAL PRIVACY ACT, SAFEGUARD RULES, PRETEXTING Pretexting occurs when someone tries to access personal, non-public information without the proper authority to do so, such as impersonating an account holder to request private information by phone, email, mail. Phishing and phony websites used to collect data are also an example of pretexting.
Pretexting
Pretexting UNDER GLB someone tries to access personal, non-public information without the proper authority to do so, such as impersonating an account holder to request private information by phone, email, mail. Phishing and phony websites used to collect data are also an example of pretexting.
The GLBA Safeguards rule requires that security programs have what basic elements?
Safeguard Rules requires all files to be kept confidential and stored in a locked cabinet or draw, when not in use. All files have to be kept for a period of at least three years before being destroyed. The CD must be kept for at least five
The "Red Flag" Rules refers to warning signs of identity theft.
Yes
FTC recommends using what website to obtain a free copy of your credit report?
annualcreditreport.com
before passing FACTA consumers had to pay for what?
copy of credit report
FACTA mandates Identity Theft Procedures
institutions with covered accounts to develop and implement a written Identity Theft Prevention Program to detect, prevent, and mitigate identity theft in connection with opening new accounts and operating existing accounts.
FACTA requires LOs to ____ all pending docs at end of work day?
secure, lock up, not on desk
At what interest rate tier would a 17-year note be priced?
20 Year interest rate tier Mortgage terms typically run between 10 and 30 years in increments of five. If a mortgagor chooses an "odd-year term," that term is usually priced to the next highest five-year increment.
Gross rental income is considered at what percentage in the absence of a federal income tax return schedule E? Answer
75% of gross rental income earned. SCHEDULE E NOT REQUIRED
FCRA Applies to Who and What
FCRA applies to loan applications completed by a consumer for a closed-end or an open-end loan that is secured by a 1-4 family unit dwelling.
FACTA - Fair & Accurate Credit Transactions Act Goals
FACTA, is an amendment to FCRA and adds provisions to improve the accuracy of consumers' credit-related records. It gives consumers the right to one free credit report each year from each credit reporting agency. It also allows consumers to purchase, for a reasonable fee, a credit score, along with the information about how the credit score was calculated. FACTA states that "any person who makes or arranges loans" and uses consumer credit scores must follow specific disclosure guidelines. FCRA applies to loan applications completed by a consumer for a closed-end or an open-end loan that is secured by a 1-4 family unit dwelling.
FACTA is an extension of what law?
FCRA
Disclosures/Notice Required: Notice to Home Loan Applicant
Disclosures/Notice Required: Notice to Home Loan Applicant
FACTA - Fair and Accurate Credit Transaction Act
Improves consumer access to credit information; Provides avenues for the resolution of consumer disputes; Prevent and detect identity theft Notice to Home Loan Applicant Identity theft, consumer disputes CFPB & FTC Federal Trade Commission (FTC) both enforce the law
Alt-A loans allowed homeowners to take equity in the form of cash out of their homes
Liar's Loan NINA is a "no income/no asset" loan. The NINANE is a "no income/no asset/no employment" loan. The SIVA is a "stated income/verified asset" loan.
Negative Credit Infomation on Report
MLOs must disclose the following information to the consumer as soon as is reasonably practicable: ● The consumer's credit score or the most recent credit score that was provided by the credit reporting agency ● The range of possible credit scores under the model used. ● Any factors that adversely affect the score; up to four key factors, including excessive inquiries. ● The date the credit score was created. ● The name of the company that provided the credit report. This disclosure requirement can be met by simply providing the consumer with the Notice to Home Loan Applicant Disclosure. When a creditor discloses negative information to a consumer credit reporting agency, the creditor must also disclose that information to the consumer. The disclosure must be made to the consumer no later than 30 days after the negative information was provided to the credit bureau(s).
MLO Must disclose credit information
MLOs must disclose the following information to the consumer as soon as is reasonably practicable: ● The consumer's credit score or the most recent credit score that was provided by the credit reporting agency. ● The range of possible credit scores under the model used. ● Any factors that adversely affect the score; up to four key factors, including excessive inquiries. ● The date the credit score was created. ● The name of the company that provided the credit report. This disclosure requirement can be met by simply providing the consumer with the Notice to Home Loan Applicant Disclosure. When a creditor discloses negative information to a consumer credit reporting agency, the creditor must also disclose that information to the consumer. The disclosure must be made to the consumer no later than 30 days after the negative information was provided to the credit bureau(s).
The Red flag Rules were issued by the Federal Trade Commission (FTC).
Red Flags Rule Are you up on the Red Flags Rule? (Sometimes it's referred to as one of the Fair Credit Reporting Act's Identity Theft Rules and it appears in the Code of Federal Regulations as "Detection, Prevention, and Mitigation of Identity Theft.") The Red Flags Rule requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs - or red flags - of identity theft in their day-to-day operations.
FCRA vs FACTA
The Fair Credit Reporting Act (FCRA) is a federal law, which, among other things, provides individuals the right to examine their own consumer files maintained by consumer reporting agencies to ensure the accuracy of such information. The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) amended the FCRA in numerous respects. Pprevent identity theft Allow consumers greater access to their consumer files than initially provided by the FCRA. New standards about what can be included in a consumer report and modifies, in part, the process by which consumer disputes are handled.
FACTA FREE Credit Report When
The Fair and Accurate Credit Transactions Act (FACTA) provides that the three major credit reporting bureaus (Equifax, Experian, and TransUnion) must provide a free copy of your credit report every 12-month period. The rules issued by the Federal Trade Commission also provide that you must be able to make your request of all three bureaus with one phone call, letter or website inquiry. You may call 1-877-322-8228, visit www.annualcreditreport.com or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Be aware that to receive your free annual copy of your credit report from the bureaus, the request must be submitted as above. You may not contact the bureaus directly for your free annual report. FACR, Fair Credit Reporting Act provides that the three major credit bureaus must provide you a free copy of your credit report from their bureau: If any adverse action has been taken as a result of information included in your credit report. Adverse actions would include being denied for credit, employment or housing or receiving a higher insurance rate. After placing a fraud alert on your credit reports or any other actions as a result of being a victim of identity theft. After disputing inaccurate information included on your report. These requests for free reports should be made directly with the bureau involved.
FHFA Conventinal/Conforming Loan
The Federal Housing Finance Agency (FHFA) establishes annual loan limits beyond which jumbo financing would be required. The current conventional/conforming loan limit for single-family properties is $548,250 L:imit in 2021. Was 510,410
GLBA (Gramm-Leach-Bliley Act)
The Gramm-Leach-Bliley Act (GLB Act or GLBA), also known as the Financial Modernization Act of 1999, is a federal law enacted in the United States to control the ways that financial institutions deal with the private information of individuals. The Act consists of three sections: The Financial Privacy Rule, which regulates the collection and disclosure of PRIVATE , Not Public Infomation, NPI financial information; the Safeguards Rule, which stipulates that financial institutions must implement security programs to protect such information; and the Pretexting Prohibits Pretexting (accessing private information using false pretenses). The Act also requires financial institutions to give customers written privacy notices that explain their information-sharing practices.
Notice to the Home Loan Applicant Must be Provided:
The LENDER
What established the secondary market
The secondary market was established in 1938 with the creation of Fannie Mae. The secondary market provides investment firms with the funds that they need in order to purchase mortgage backed securities and participation certificates to sell to individual investors. This provides the money with which lenders fund homebuyers' loans.
Social Security Gross Up
Underwriter may gross-up the income by adding up to 25% x 1.25 . Opposite of Rent
QM Pre-Payment Limits
With the implementation of QM's through the Dodd-Frank Act, pre-payment penalties are limited to 2% of the outstanding balance during the loan's first two years, 1% of the loan's outstanding balance during the third year, 0% 4th year and no penalty thereafter
