Chapter 3 Additional Government Influence (Class 5)

The Fair Credit Reporting Act (FCRA)

A federal law designed to protect consumers against unfair credit reporting practices and protect credit privacy.

What would not be in violation of RESPA?

An affiliated business arrangement is not a violation of Section 8 of RESPA. An Affiliated Business Arrangement Disclosure Statement form must be used to comply and notice must be given to consumer within 3 business days.

What program was created in 1974 to assist states and communities and is one of the oldest block grant programs?

Community Block Development Grant (CBDG)

Under what Act was the CFPB established?

Dodd-Frank

The Secure and Fair Enforcement for Mortgage Licensing Act is designed to?

Enhance consumer protection and reduce fraud.

The Community Reinvestment Act

Ensures that banks would serve the needs of the community in which they were chartered to do business. It prohibits redlining.

Who is the largest insurer of mortgages in the world?

FHA

What are examples of terms that don't trigger further disclosures?

General statements, such as "take years to pay" or "no closing costs," they do not state or suggest the period of repayment or down payment cost.

Why is the VLB (Vet Land Loan Program) the only one of its kind in the nation?

Gives the Texas veteran the opportunity to borrow up to $155,000 to purchase land at competitive interest rates while typically only requiring a minimum 5% down payment for tracts one acre or more.

Who is the Community Block Development Grant (CBDG) administered by?

Office of Community Planning and Development (CPD).

How can agents avoid trigger terms that would further require disclosures under TILA?

One strategy used to avoid the TILA requirement is to keep the advertisement sufficiently vague by avoiding all "trigger terms."

How does the FHA get funded?

Operates from self-generated income and costs taxpayers nothing. Proceeds from mortgage premiums that homeowners pay is what funds the program.

Who implemented TILA?

Regulation Z and became effective in 1969

Who do Texas RMLO's register with?

Texas SML (Texas Dept. of Savings and Mortgage Lending)

Which federal law significantly affects lenders?

The Community Reinvestment Act.

What is The Fair Credit Reporting Act sometimes called?

The Fair Credit Reporting Dispute Act

What is the Closing Disclosure closely tied to?

The Loan Estimate form which replaced the old Good Faith Estimate.

CFPB's Reg X implements?

The Real Estate Settlement Procedures Act (RESPA)

What does the Closing Disclosure have to contain?

The actual terms and costs of the transaction.

How does HUD assist low-income households with rental subsidies in the private sector, thru sect 8 certificates and vouches?

Through the Office of Public and Indian Housing.

What was created as part of LBJ's war on poverty?

U.S. Dept of Housing and Urban Development (HUD)

Under part of the CDBG program can communities obtain financing for economic development, housing rehab and large scale physical development projects?

Under the Section 108 Loan Guarantee component of the CDBG program

What does the TDHCA (The Texas Dept. of Housing and Community Affairs) also operate as?

a housing finance agency.

How is the traditional home mort loan different from the reverse mortgage?

a reverse mortgage is underwritten based upon the home's appraised value and the loan term or actuarial life expectancy of the owner, and not upon the income or earning capacity of the owner, who is most often retired and living on a fixed income.

The Farm Service Agency (FSA)

is an agency of the U.S. Department of Agriculture (USDA). Loans are available through FSA's Farm Loan Programs for a farmer or rancher who is unable to obtain credit elsewhere to start, purchase, sustain, or expand a family farm.

What does the Home Mortgage Disclosure Act require?

lending institutions to report public loan data

What is the goal of an FSA (Farm Service Agency) loan?

to help the farmer/rancher graduate to commercial credit. Once he's able to get credit from a commercial lender, the FSA mission is complete.

What is the purpose of FHA?

to provide mortgage insurance on loans made by FHA approved lenders. Insures mortgages on single-fam, multi fam and manu homes and hospitals.

Agents involved in agricultural sales need to have a list of lenders that?

understand agricultural lending. The license holder who refers a buyer to a lender who is not accustomed to this type of lending is doing a disservice to all parties.

Open-end loan

which has payments and advances that vary over time. ie. credit cards

What is the USDA Rural Development Guaranteed Housing Loan program commonly called?

"USDA loan," or a "Section 502 loan," is insured by the U.S. Department of Agriculture. The program offers 100% financing (no down payment) for qualified borrowers.

For VLB financing eligibility, the land must be:

1. Be wholly within the state of Texas. 2. Contain at least one acre, excluding any portion beneath a dedicated public roadway or navigable waterway or subject to frequent inundation or otherwise unusable. 3. Have legal, usable access to a public road. 4. Be properly described by either a Field Note description of the tract with the Surveyor's Official Seal and Signature (original or copy), or a complete copy of the recorded subdivision plat if the description is by Lot & Block. 5. Not be zoned strictly for commercial use. 6. Not have been owned by the veteran or spouse within the previous three years.

How is Agricultural lending difference from residential lending?

1. Buyers are often seeking financing on unimproved properties that may lack utilities. 2. The value of the land may exceed the value of improvements by a large margin. 3. The land being financed may include numerous outbuildings such as barns. 4. The farm or ranch in question may also be an ongoing business that has value. 5. The sale of agricultural property often includes personal property including farm equipment and livestock.

FHA provides a huge economic stimulus to the country in the form of home and community development, which trickles down to local communities in the form of jobs, building suppliers, an expanding tax base, and other forms of revenue. The programs are:

1. Community Development Block Grants (CDBG) to help communities with economic development, job opportunities and housing rehabilitation; HOME Investment Partnerships Program block grants to develop and support adordable housing for low-income residents; 2. Rental assistance in the form of Section 8 certi cates or vouchers for low-income households; 3. Public or subsidized housing for low-income individuals and families; 4. Fair housing public education and enforcement; Ginnie Mae, a wholly owned federal corporation within HUD, pioneered the mort- gage-backed security. ese government-backed securities lower market interest rates and create homeownership incentives, and enabled Ginnie Mae to add more than $1.5 trillion to the supply of America's a ordable mortgage funds.

The CFPB has the authority to?

1. Examine and enforce consumer protection regulations for all mortgage-related businesses, large non-bank financial companies, and banks and credit unions with assets greater than $10 billion. 2. oversee non-bank businesses, regardless of size, in certain markets: mortgage companies (originators, brokers, servicers, and loan modi cation or fore- closure relief services), payday lenders, and private education lenders.

What are HUD's major programs?

1. FHA 2. Community Development Block Grants (CDBG) 3. Home Investment Partnerships Program 4. Rental Assistance 5. Public or Subsidized Housing 6. Fair housing public education and enforcement 7. Ginnie Mae

What are the different FSA (Farm Service Agency) loans?

1. Farm Ownership loans- help purchase a farm/ranch, construct a new/improve an existing farm/ranch building, pay closing costs, and pay for soil and water conservation and protection. 2. Operating loans- for the purchase of livestock and equipment and pay for minor real estate repairs and annual operating expenses. 3. Emergency loans- will help if the applicant suffered a qualifying loss caused by natural disasters that damaged a farming or ranching operation. Emergency loan funds may be used to restore or replace essential property, pay all or part of production costs associated with the disaster year, pay essential family living expenses, reorganize the farming operation, and refinance certain debts. 4. Conservation loans-will help complete a conservation practice in an approved conservation plan.

What are zero tolerance charges regarding a loan estimate?

1. Fees paid to the creditor, mortgage broker, or an affiliate of either. 2. Fees paid to an unaffiliated third party if the creditor did not permit the consumer to shop for a third party service provider for a settlement service. 3. Transfer taxes.

What are the key provisions of FACTA?

1. Free consumer reports 2. Truncation of credit card and debit card account numbers 3. fraud alerts and active duty alerts 4. Disclosure of credit scores 5. establishment of procedures for the identification of possible instances of identity theft

What are examples of OCCC (the Office of Consumer Credit Commissioner) regulated RE transactions?

1. Home Equity Loans: allow borrowers to use the market value of a home as collateral for a loan. 2. Secondary Mortgages: are secured by homes that already have at least one other mortgage or lien. 3. Home Improvement Loans: Loan principal is devoted to home repairs and renovations. 4. Property Tax Lien Lenders: is loan is used to pay delinquent taxes on real property.

Although The RESPA-TILA Disclosure Rule applies to most closed-end loans, it doesn't apply to?

1. Home-Equity Lines of Credit or Reverse Mortgages 2. Mortgages secured by a mobile home or by a dwelling that is not attached to real property (i.e. land). 3. Loans made by a creditor who makes ve or fewer mortgages in a year.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) required the CFPB to integrate loan disclosures under the TILA and RESAP. The CFPB released the RESAP-TILA Integrated Disclosures Rule (TRID Rule) that mandated the use of what 2 disclosures?

1. Loan Estimate (LE)-must be delivered/mailed within 3 days after receipt of an application and within 7 days before closing. 2. Closing Disclosure (CD)

What are costs that are permitted to be charged to consumers without any tolerance limitations under RESPA-TILA Integrated Disclosure Rule?

1. Prepaid interest; property insurance premiums; amounts placed into an escrow 2. For services required by the creditor if the creditor permits the consumer to shop and the consumer selects a third-party service provider not on the creditor's written list of service providers. 3. Charges paid to third-party service providers for services not required by the creditor (may be paid to affiliates of the creditor).

Loan applications must include the following? Can be written or oral.

1. Property Address 2. Estimated Value 3. Name of the borrower 4. Social Security Number 5. Income 6. Loan Amount **PENSIL

The Dodd-Frank Act set forth the statutory mandate of the CFPB. What policies did it establish?

1. Providing consumers with understandable disclosures. 2. Protecting consumers from unfair, deceptive or abusive acts and discrimination. 3. Reducing unnecessary regulatory burdens. 4. Enforcing the federal consumer laws in a manner that does not discriminate against depository institutions. 5. Promoting the maintenance of a competitive consumer marketplace.

The EECO Act Prohibits discrimination in any aspect of a credit transaction on the basis of?

1. Race 2. Color 3. Religion 4. National Origin 5. Sex 6. Marital Status 7. Age (provided that the applicant has the capacity to enter into a binding contract) 8. Receipt of income from a public assistance program 9. The good faith exercise of any right under the Consumer Credit Protection Act ** The provisions of ECOA do not prevent a mortgage loan originator from obtaining information necessary to evaluate the creditworthiness of an applicant. ***The Equal Credit Opportunity Act requires that mortgage loan originators apply credit standards in a fair manner, so that all consumers are given an equal chance to obtain credit. It does not require all mortgage loan originators to have the same standards, simply that they apply their existing standards equally.

Administrative Procedures Act (APA) 1946

1. Require agencies to keep the public informed of their organization, procedures and rules. 2. Provide for public participation in relation to the rule making process. 3. Establish standards for conduct of adjudication/formal rule making. 4. Define judicial review scope.

What are the 5 strategic goals for HUD's Strategic Plan for fiscal years 2014-2018?

1. Strategic Goal 1: Strengthen the Nation's Housing Market to Bolster the Economy and Pro- tect Consumers 2. Strategic Goal 2: Meet the Need for Quality A ordable Rental Homes 3. Strategic Goal 3: Use Housing as a Platform to Improve Quality of Life 4. Strategic Goal 4: Build Strong, Resilient, and Inclusive Communities 5. The set of 8 management objectives include establishing strategies and metrics for acquisitions, departmental clearance, equal employment opportunity, financial management, grants management, human capital, information management, and organizational structure.

What are state and local programs?

1. The Office of Consumer Credit Commissioner (OCCC) 2. Texas Department of Savings and Mortgage Lending (SML) 3. The Texas Department of Housing and Community A airs (TDHCA) 4. The Texas Veteran's Land Board (VLB) 5. VLB Veterans Housing Assistance Program (VHAP) 6. Home Equity lending in Texas 7. TEXAS REVERSE MORTGAGE

What does the initial escrow account statement include?

1. The amount of the borrower's monthly mortgage payment and the portion of the monthly payment going into the escrow account 2. itemized estimated taxes, insurance premiums, and other charges and the anticipated disbursement dates of those charges. 3. the amount that the servicer selects as a cushion. 4. a trial running balance for the account.

Items that aren't allowed to be changed on a Loan Estimate are:

1. The borrower's name 2. The borrower's monthly income 3. The property address 4. Estimated value of the property 5. The mortgage loan amount 6. Any information in the credit report generated prior to issuance of the GFE, unless the information has changed or found to be inaccurate 7. Market price fluctuations

What are the 2 key responsibilities of The Texas Department of Savings and Mortgage Lending (SML)?

1. The chartering, regulation and supervision of the state's thrift industry (savings and loans) 2. The licensing/registration and regulation of the state's mortgage industry

What are the acceptable reasons that a Closing Disclosure would be changed ?

1. The disclosed APR becomes inaccurate. 2. The loan product changes. 3. A prepayment penalty is added. **For these changes, there is no additional 3 business-day waiting period required. The creditor must ensure only that the consumer receives the revised Closing Disclosure at or before closing.

What are the 2 purposes of HMDA and Regulation C?

1. To provide the public with information that will help show whether financial institutions are serving the housing credit needs of their neighborhoods and communities. 2. to aid public officials in targeting public investments from the private sector to areas where they are needed.

What are common appraisal issues and questions raised by lenders who don't understand rural properties?

1. Why is the nearest comparable property 12 miles from the subject property? 2. Why are two of the comparables over one year old? 3. How can the nearest re hydrant be 21 miles from the property? 4. Is the property on a private well? 5. The property has no access to a public sewer. 6. The property is served by a volunteer fire department. 7. The sale includes a tractor and six cows. 8. The improvements (the home) are of relatively low value compared to the land.

What are the 3 national goals where the CBDG funds have to be spent?

1. aid low and moderate-income persons 2. prevent or eliminate slum or blight conditions 3. meet an urgent need that threatens health or safety

A consumer reporting agency may furnish a consumer report under the following circumstances and no other:

1. by court order 2. by consumer request 3. to a person who a. needs for credit verification b. employment c. underwriting d. someone getting a specialized license e. for a legitimate business purpose

The Home Mortgage Disclosure Act (HMDA)

1. enacted by Congress in 1975 2. was implemented by the Federal Reserve Board's Regulation C.

What qualifies for USDA loans?

1. first time buyers and repeat buyers 2. primary residence 3. purchase and refi's 4. home must be in an approved rural area 5. some small towns, including suburbs of major cities, may qualify 6. eligibility is capped at 115% of median income in the area 7. only offers 30 yr. fixed rate 8. borrower will pay Guaranty Fee for purchases: 2.00% paid at closing Annual fee: .5% of the loan balance **no second homes, no cash out refi's, no working farms or ranches

Qualification requirements for VHAP (The Vets Housing Assistance Program):

1. must be the veteran's primary residence in Texas. 2. must be a single family attached or detached home, town home or condominium. 3. Duplexes or other multi-family units must have been constructed at least five years prior to the closing date of the loan. 4. New homes must have either ENERGY STAR certification or HERS Index score of 75 or less. 5. The home must remain as the veteran's primary residence for at least three years, and the Vet borrower must occupy the home within 60 days after loan closing.

The Equal Credit Opportunity Act (ECOA)

1. originally passed in 1974, 2. ensures that all consumers are given an equal chance to obtain credit. 3. Covers all creditors who regularly extend credit and impacts professionals, such as residential mortgage loan originators, who are involved in granting credit.

What are CDBG funds used for?

1. renovate housing; 2. construct or improve public facilities, such as water, sewer, streets and neighborhood centers 3. purchase real property 4. assist private businesses in economic development activities.

What are the disclosures that RESPA-TILA Integrated Disclosure Rule requires at the time of application?

1. servicing disclosure- a. Whether the servicing of the loan may be assigned, sold, or transferred. b. A written acknowledgment that the applicant has read and understood the disclosure, evidenced by the signature of the applicant. 2. Loan Estimate 3. Closing Disclosure **designed to provide disclosures that help consumers to understand the key features, costs, and risks of the mortgage for which they are applying.

The Dodd-Frank Wall Street Reform and Consumer Protection Act

1. signed into law by President Obama on July 21, 2010. 2. was a sweeping restructuring of U.S. financial regulation in response to the worst financial crisis in the United States since the Great Depression. 3. The offcial purpose of the law is to "promote the financial stability of the United States by improving accountability and transparency in the financial system, to end 'too big to fail,' to protect the American taxpayer by ending bailouts, to protect consumers from abusive financial services practices and for other purposes." 4. Its purpose ascribed by congress and the President includes restoring public confidence in the financial system, preventing another financial crisis, and allowing any future asset bubble to be detected and deflated before another financial crisis develops.

Under Sect. 8 vouchers/certs through the Office of Public and Indian Housing, :

1. tenants have greater freedom of choice to select housing where they want to live within a standard rent range. 2. rent subsidies are used to pay owners the di erence between what tenants can pay and contract rents. 3. also provides funds for the rental voucher, certi cate and Mod- erate Rehabilitation programs that are managed by local public housing agencies (PHAs) created by state law and administered by local governments.

The Interstate Land Sales Full Disclosure Act

1. was passed by Congress in 1968. The Act was passed to protect consumers from fraud in the sale or lease of land. Protects consumers from developers who sold properties in remote areas with promises of clubhouses, golf courses and other facilities. Many of these properties were sold "site unseen."

The Truth in Lending Act (TILA)

1.Enacted on May 29, 1968, as TITLE I of the Consumer Credit Protection Act. TILA, implemented by Regulation Z

What is a good rule of thumb regarding originators and working with buyers?

A good rule of thumb is to provide the buyer with at least three loan originators for them to consider, understanding that the buyer is free to use any loan originator that they choose.

What was HUD's mission?

Create, strong, sustainable, inclusive communities and quality affordable homes. Works to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

HMDA (The Home Disclosure Act) grew out of public concern over?

Credit shortages in certain urban neighborhoods. The Congress believed that some financial institutions had contributed to the decline of some geographic areas by failing to provide adequate home financing to qualified applicants

The CFPB is responsible for?

Enforcing federal consumer financial law including: 1. Truth In Lending Act (TILA) 2. Fair Credit Reporting Act (FCRA) 3. Real Estate Settlement Procedures Act (RESPA) 4. Equal Credit Opportunity Act (ECOA)

The Safe Mortgage Licensing Act was designed to?

Enhance consumer protection and reduce fraud by encouraging states to establish minimum standards for the licensing and registration of state licensed mortgage loan originators, and for the establishment of a nationwide mortgage licensing system and registry for the residential mortgage industry.

RESPA (RE Settlement Procedures Act)

Ensures that consumers get more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices. The Act requires originators and servicer's give borrowers timely disclosures of the nature and costs of the real estate settlement process. Designed to help consumers become more knowledgeable of settlement services costs, also prohibits undisclosed referral fees and kickbacks. It also mandates disclosures for mortgage escrow accounts at closing and annually.

As a General rule, What are good organizations for agricultural lending?

Farm Credit organizations are a good choice for agricultural lending, as are many local independent banks who understand the local market. ese lenders understand how to underwrite loans that combine real estate, vehicles, farm equipment and livestock.

Who mandated the term Residential Mortgage Loan Originator?

The SAFE Act.

What is the difference between VLB loans and Fannie/Freddie after the loan is made?

The loan is sold to the Texas Veteran's Land Board (VLB), as opposed to a secondary market purchaser such as Fannie Mae or Freddie Mac.

What is TDHCA's (The Texas Dept. of Housing and Community Affairs) mission?

The mission of the Department is to serve the state's extremely low to moderate-income populations. Funding priority is given to those populations most in need of services: extremely low, very low, and low-income households and individuals.

Redlining

The practice of refusing to provide nancing in a particular area because of location.

What does RESPA's Reg X require to be provided at closing or within 45 days of the closing?

The servicer must conduct an escrow account analysis before establishing an escrow account to determine the amount the borrower shall deposit into the escrow account. After account analysis for each escrow account, the servicer must submit an initial escrow account statement to the borrower at settlement or within 45 calendar days of settlement for escrow accounts that are established as a condition of the loan.

The main purpose of TILA is?

To ensure the meaningful disclosure of consumer credit and lease terms so that consumers can compare those terms and shop wisely. Prior to the passage of the Act, an advertiser might have disclosed only the most attractive credit (or lease) terms, thus distorting the true cost. The Act requires that the advertisement tell the whole story.

The Texas Veteran's Land Board Housing Assistance Program

To participate in the program, the veteran obtains an FHA, VA or conventional loan from a participating lender. The qualification process is the same as for any other FHA, VA or conventional loan, and is open to all honorably discharged Texas veterans.

What does the SAFE Act seek to do?

To protect consumers from incompetency, fraud, and other abuses by ensuring that individuals acting as RMLOs receive training on and can demonstrate an understanding of their applicable legal and ethical obligations.

Disclosures after the closing include?

When the servicing of a federally related mortgage loan is assigned, sold, or transferred, 1. the transferor servicer (present servicer) must provide a disclosure not less than 15 days before the effective date of the transfer. 2. transferee servicer (new servicer) must be provided not more than 15 days after the effective date of the transfer. Both notices may be combined into one notice delivered to the borrower not less than 15 days before the effective date of the transfer. The disclosure must include: 1. effective date of the transfer of servicing. 2. The name, address for consumer inquiries, and toll-free or collect-call telephone number of the transferee servicer. 3. A toll-free or collect-call telephone number for a person employed by the transferor servicer that can be contacted by the borrower to answer servicing transfer questions. 4. The date on which the transferor servicer will cease accepting payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. These dates must either be the same or consecutive dates. 5. Any information about the effect of the transfer on the availability of optional insurance and any action the borrower must take to maintain coverage. 6. A statement that the transfer does not a ect any other terms or conditions of the mortgage, except as related directly to servicing.

Closed-end loan

a loan with a specific balance set at the beginning, and the balance cannot be increased during the term of the loan.

What was the U.S. Department of Housing and Urban Development's Strategic Plan for Fiscal Years 2014- 2018 designed to do?

achieve a central goal: expanding opportunity for all Americans.

The VLB's Veterans Housing Assistance Program (VHAP)

aids Texas Veterans in purchasing a home. Eligible Texas Veterans have an opportunity to purchase a home with a competitive, low-interest loan with little or no down-payment. Veterans, military members and their spouses may receive up to $424,100 on a fixed-rate loan for 15, 20, 25 or 30 year terms*. Veterans with a VA service-connected disability rating of 30% or greater qualify for a discounted interest rate.

The Texas Dept. of Housing and Community Affairs (TDHCA)

an agency responsible for affordable housing, housing related and community service programs, and the regulation of the state's manufactured housing industry. Addresses a broad spectrum of housing and community affairs issues that include low-interest mortgage financing, emergency food and shelter, rental subsidy, and energy assistance.

Whether or not a Loan Estimate was made in good faith is determined by?

calculating the difference between the estimated charges originally provided in the Loan Estimate and the actual charges paid by the consumer in the Closing Disclosure. Generally, if the charge paid by the consumer exceeds the amount originally disclosed on the Loan Estimate it is not in good faith, However, a Loan Estimate is considered to be in good faith if the creditor charges the consumer less than the amount disclosed on the Loan Estimate, without regard to any tolerance limitations.

RESPA and Reg X under Section 9 prohibit?

either directly or indirectly, a seller from requiring a purchaser to buy title insurance from a specific title company in any transaction as a condition of the sale.

For an RMLO to get registered with Texas, they must?

enroll in the Nationwide Mortgage Licensing System and Registry and meet the qualification requirements for a mortgage banker. All other mortgage loan originators, without exception, must be state licensed, including: a. Non-Depository Mortgage Bankers b. Mortgage Brokers c. Independent Contractor Loan Processors or Underwriters

What is a "Sham" business arrangement?

entity designed to facilitate payment of illegal fees and thus not entitled to the benefit of the affiliated business arrangement.

TILA

federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of lending arrangements and all associated costs. Most of the specific requirements imposed by TILA are found in Regulation Z. TILA also establishes disclosure standards for advertisements that refer to certain credit terms.

Reverse Mortgages

financial tool for many older homeowners who describe them- selves as "house rich and cash poor."

Who does the Fair Credit Reporting Act govern and what is its purpose?

governs the consumer reporting agencies and those who access consumer credit reports. The general purpose of the FCRA is to assure the consumer that these agencies are fair, accurate and exhibit confidentiality in their credit reporting methods.

What is the mission of the OCCC (The Office of Consumer Credit Commissioner)?

help produce a fair, lawful, and healthy credit environment for social and economic prosperity in Texas.

The Fair and Accurate Credit Transaction Act of 2003 (FACTA)

intended to primarily help consumers ght the growing crime of identity theft. Accuracy, privacy, limits on information sharing, and new consumer rights to disclosure are included in FACTA.

Home Equity Loan

loans that are collateralized by a non-purchase money mortgage or deed of trust on the borrower's principal residence. The borrower's equity, relative to the value of the residence, provides protection for the loan and determines the maximum amount of credit that may be advanced. Uses for: consumer purchases, personal investments, working capital for small business, and a supplement to personal income.

What is the TRID (RESPA-TILA Integrated Disclosure) rule regarding delivery of the Closing Disclosure?

no later than 3 business days before closing

HMDA is a disclosure law that relies on ?

public scrutiny for its e ectiveness. It does not prohibit any specific activity of lenders, and it does not establish a quota system of mort- gage loans to be made

The Interstate Land Sales Full Disclosure Act requires developers to?

register subdivisions of lots or condominium units sold in interstate commerce. currently administered by the Consumer Financial Protection Bureau (CFPB) Developers are required to provide each purchaser with a disclosure document (Property Report). The Property Report contains information about the subdivision and is required to be delivered to a purchaser before the signing of a purchase agreement. e purchase agreement gives the purchaser a seven day period in which the purchase can be canceled.

What does the Office of Consumer Credit Commissioner regulate?

regulates the credit industry and educates consumers and creditors. Agency efforts help produce a fair, lawful, and healthy credit environment for social and economic prosperity in Texas.

RESPA and Reg X under Section 10 prohibit?

set limits on the amounts that a lender may require a borrower to put into an escrow account for purposes of paying taxes, hazard insurance and other charges related to the property. RESPA doesn't require escrow account on borrowers but some gov loans and lenders do.

FSA (Farm Service Agency) loans are ? in nature.

temporary

Who are HUD's programs that prevent housing discrimination through public education and enforcement administered by?

the Assistant Secretary for Fair Housing and Equal Opportunity (FHEO).

Who has authority over The Home Mortgage Disclosure Act?

the Consumer Financial Protection Bureau (CFPB)

Who appoints the OCCC (The Office of Consumer Credit Commissioner)?

the Finance Commission of Texas

Who do all loan originators have to be registered with?

the Nationwide Mortgage Licensing System and Registry (NMLSR).

What code does the OCCC (The Office of Consumer Credit Commissioner)fall under?

the Texas Finance Code

Creditors are not permitted to charge consumers more than ?

the amount disclosed on the Loan Estimate under any circumstances other than changed circumstances that permit a revised Loan Estimate.

What is the primary benefit to the vet whose loan is sold to the VLB?

the rate on the Veteran's Land Board loan is often up to one percent below prevailing market rates.