Flashcards in Federal Laws and Regulations NMLS Deck (13)
Uniform State Test of the NMLS Exam establishes minimum standards for who can participate in the mortgage industry and lays guidelines for each state's participation in the SAFE Act and utilization of the NMLS database.
Secure and Fair Enforcement of Mortgages Act: Title V of HERA (Regulation G).
Farm Credit Administration
Exempt from the SAFE Act licensing requirements.
NMLS Database Categories
Mortgage Uniform (MU)
MU 1: Business Entities
MU 2: Owners and Officers of those entities
MU 3: Branch officer and those entities
Parties Exempt from SAFE Act Licensing
1. Registered MLOs
2. Employees of a federal or state housing finance agency
3. Employees of NPOs
4. Individuals negotiating on behalf of immediate family members
6. W2 employees performing clerical and support duties of a licensed or exempt company
However, contract employees paid on a 1099 must be SAFE Act licensed
Education, training, background checks, financial responsibility
Fine Amount for violating SAFE act (ie not licensed, bait and switch etc)
What must you provide if a borrower asks you for the interest rate?
Dodd Frank Wall St Reform and Anti Predatory Lending Act
Title IX addressed the Securities Ratings Agencies
Title X created the CFPB
Title XIV is the Mortgage Reform and Anti Predatory Lending Act
Subtitle A: Mortgage Loan Origination Standards
Subtitle B: Minimum standards for mortgage loans
Subtitle C: increased minimum standards for HOEPA laons
Subtitle D: created Office of Housing Counseling
Subtitle E: addressed Mortgage Servicing
Subtitle F: Appraisal Activities (cannot bribe etc)
Subtitle G: Mortgage Resolution/Modification
Subtitle H: Miscellaneous Provisions
What 3 types of loans have mandatory homeowners counseling?
HECM (FHA Reverse Mort)
First time homebuyers that have a neg amort loan
Anti discrimatory practices towards all demographics.
Make sure EVERYONE has access to credit
ECOA outlaws redlining: Outlining areas (the hood) that creditors didn't want to lend to