REG B
Equal Credit Opportunity Act 1974
ECOA under TILA TITLE XIV
Federal Reserve is boss
prevents discrimination/ redlining
Fair Housing Act race/color/religion/national origin/sex/familial status/ HANDICAP
1st lien
denial in 30 days called adverse action with reasons
If more than 1 applicant notice to one is okay
free copy of appraisal
Borrower gets copy of appraisal 3 days prior to consumation.
Minor revisions of appraisal borrower can waive the 3 days at close
Not closed consumated appraisal to borrower before 30 days
cannot ask about Mrs. Ms. Miss
FINES: $10,000 individual actions. Cass actions: penalty of $500,000 or 1% of the creditor's net worth, whichever is lower.
Ethic means Latino...
Race is American Indian/Asian/Black/Native Hawaiian/
Not covered are: manufactured, reverse, business, loan modifications
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REGULATION C
Home Mortgage Disclosure Act HMDA
CFPB amended dwelling-secured standard for all loans or lines of credit that are for personal, family, or household purposes. Thus, most consumer-purpose transactions, including closed-end home-equity loans, home-equity lines of credit, and reverse mortgages, are subject to the regulation.
All closed end loans for home improvement, purchase or refinance
transactional coverage to require reporting of all open end not home-equity lines of credit.
Federal Reserve
2017 platform/website
Loan data and low to moderate income data
Loan Application Register LAR report Annually
loan number/date/ loan type/ $ purpose/property type/occupancy/preapproval/actions/
DTI/ location/ ethnicity (Hispanic)/ race/ sex/ income/ pice/ HOEPA/ rate/ points/FICO/DU or LP/age/
Depository banks report to supervising agencies, non depository report to HUD US Dept of Housing and Urban Development. The Federal Financial Institutions Examination Council posts the records FFIEC
Fines: $10000 or $500,000 or 1% of worth
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REGULATION X
RESPA Real Estate Settlement Procedures Act
1-4 units and 2nd trust deeds
8 a) no kickbacks
8 b) no splits
8 c) no unearned $ no attorney or broker referral fees
servicers disclose % of loans sold
FINES: $10000 and 1 year jail
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Regulation Z
CFBP Federal Trade Commission FTC
TILA Truth in Lending HOEPA Home Ownership and Equity Protection Act of 1994
Competitive Equality Banking Act of 1987 - Title I: Financial Institutions Competitive Equality - Amends the Bank Holding Company Act of 1956
1974 RESPA Act
ABILITY TO REPAY
APR disclosure
CFPR rule 2018 Servicer statement books in BK disclose 14 days after event
Title X Dodd Frank
Predatory lending in refinances and closed-end home equity loans with high interest rates or high fees.
HOEPA Section 32 loans must also meet the same APR and APOR criteria as Section 35 loans, but Section 32 loans also include these three additional criteria, which do not apply to Section 35 loans:
- The APR is higher than the APOR by more than 6.5 percent.
- Total lender/broker points and fees are greater than 5 percent of the total loan amount. This percentage includes certain fees such as origination fees, broker fees, processing fees and servicing setup fees.
- A prepayment penalty exceeds 2 percent of the prepaid amount or occurs more than 36 months after closing. lender cannot extend an HPML without setting up an escrow account to collect premium payments for property taxes / insurance except cooperative shares dwelling’s initial construction loan, bridge loans that have loan terms of 12 months or less, Reverse mortgages, certain located in rural or underserved areas
2013 HOEPA Rule
6.5 % points for first-lien loans or
8.5 % points for subordinate-lien loans
8.5 % points for first-lien loans if dwelling is personal property and less than $50,000
Points and Fees Test: Points and fees exceeding the greater of
5 % of the total loan amount if loan amount is $20,000 or more; or
The lesser of 8% or $1,000 for loan amounts less than $20,000 (adjusted annually); or
TILA Higher-Priced Mortgage Loans Appraisal Rule
Section 35 APR higher than APOR by 6.5
prepayment penalty 36 months
Fines: $5000 - 1 million or 1% of worth
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Telephone Consumer Protection Act of 1991
amended from Communications Act of 1934
auto dialers, do not call
FCC regulates
Fines: $1500
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Gram Leach Bliley
Privacy - Affiliated Parties
consumer vs customer ( has an account and applied)
2011 went under CFPB
2016 only need to give initial notice if they do not share
Must notify annually and at opening
Fines: lessor of 1 million or 1% assets 5 years jail
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FACT Act 2003 FACTA
amended Fair Credit Reporting Act
Red flags
utility companies don't need social security # covered accounts risk identity theft
CREDITOR = bank, broker, or auto dealer
fraud alerts
FINES: $100 -1000
Identity theft, free annual credit report every 12
