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Flashcards in Federal Laws and Regulations NMLS Deck (13)
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1

UST

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.

2

SAFE Act

Secure and Fair Enforcement of Mortgages Act: Title V of HERA (Regulation G).

3

Farm Credit Administration

Exempt from the SAFE Act licensing requirements.

4

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
MU 4:MLO

5

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
5. Attorneys
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

6

SAFE Act

Education, training, background checks, financial responsibility

7

Fine Amount for violating SAFE act (ie not licensed, bait and switch etc)

$25,000

8

What must you provide if a borrower asks you for the interest rate?

APR

9

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

10

What 3 types of loans have mandatory homeowners counseling?

HOEPA
HECM (FHA Reverse Mort)
First time homebuyers that have a neg amort loan

11

ECOA

Anti discrimatory practices towards all demographics.
Make sure EVERYONE has access to credit

12

Redlining

ECOA outlaws redlining: Outlining areas (the hood) that creditors didn't want to lend to

13

ECOA vs FHA

Fair Housing Act: covers familial status and mental/physical handicaps as protected

ECOA: protects those receiving public assistance income