Rules & Acts

Question 1

Ability to Repay RULE

Answer 1

ATR

Question 2

Mortgage Assistance Relief RULE

Answer 2

MAR

Question 3

TILA-RESPA Integrated Disclosure RULE (TRID)

Answer 3

TRID

Question 4

Do Not Call RULE

Answer 4

DNC

Question 5

Mortgage Acts and Practices Act “The MAP” RULE

Answer 5

MAP

Question 6

Qualified Mortgage RULE

Answer 6

QM

Question 7

Red Flags RULE

Question 8

Disposal RULE

Question 9

Safe Guard RULE

Question 10

Bank Secrecy ACT

Answer 10

BSA

Question 11

Equal Credit Opportunity ACT

Answer 11

ECOA

Question 12

Fair and Accurate Credit Transactions ACT

Answer 12

FACTA

Question 13

Fair Credit Reporting ACT

Answer 13

FCRA

Question 14

Gramm-Leach Bliley ACT

Answer 14

GLB

Question 15

Home Mortgage Disclosure ACT

Answer 15

HMDA

Question 16

Home Ownership and Equity Protection ACT

Answer 16

HOEPA

Question 17

Mortgage Disclosure Improvement ACT

Answer 17

MDIA

Question 18

Real Estate Settlement Procedures ACT

Answer 18

RESPA
Main purpose is to educate borrowers on their loan.

Important terms related to this law:

Kickbacks and Referral Fee and any other form of valuable compensation -
Fall under Section 8 of RESPA, violations are up to $10,000 and 1 year in prison or both.
Referring to Affiliated Business Arrangement (ABA) = ownership interest of more than 1% then ABA disclosure most be given at that time.

Escrow Requirements - monthly 1/12 and cushion of 1/6

Transfer of Servicing - if lender anticipates selling the servicing rights then must send notice to borrow within 3 days after application. (other notifications) former servicer = 15 days before and new servicer = 15 day after.
no late fees during the 60 day period

Enforced by: CFPB

Does not cover: vacant land, tracks of land 25 acres or more, even if there is a dwelling on it, Commercial or business loans, the government agencies or instrumentalities, temporary financing like bridge loans or swing loans.

Question 19

Truth in Lending ACT

Answer 19

TILA-Reg Z
Main Purpose is to protect consumers from predatory lending practices