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4 Cards in this Set
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- Back
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LAW: Equal Credit Opportunity Act ( ECOA) 1974 |
Reg: B Who Governs Law: Federal Trade Commission Purpose: Eliminate discriminary treatment of credit applicants Applicable to: All Credit Transactions Key words/phrases: Every Person has the opportunity to apply; anti discrimination Additional Info: Consumers are required to bring Civil action within 2 years of an alleged violation Violation Penalties: Civil penalties, $5,000 per day; $25,000 based on pattern of misconduct; punitive damages awarded for non-governmental entities. |
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LAW: Home Mortgage Disclosure Act (HMDA) 1975 |
Reg C: I hummed the letter C Who Governs Law: Federal Reserve Board Purpose: Gather government monitoring information for home purchase, refinancing or home improvement Applicable to: * Home Purchase loans, * Home improvement loans, * Refinances Key words/phrases: * Demographic Information, *Gathering information, * Government/monitoring information Violation Penalties: Regulatory agencies use a penalty matrix. The penalty is based on the number of factors. |
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LAW: Real Estate Settlement Procedures |
Reg X ( Aretha Franklin) RESPEXX Who Governs Law: Housing and Urban Development Purpose: Disclosure of loan settlement costs Applicable to: *Loans secured by 1-4 family dwellings; primary residence DOES NOT APPLY TO: * 25 acres or more, * Business, commercial or agricultural farms, * Temporary financing such as bridge loans, * Secondary Market transactions, * Vacant Land, * Assumptions without lender approval Key words/phrases: * Loan disclosures, * Settlement, * Loan Settlement, * Settlement cost, * Settlement disclosures Additional Info: * Good Faith Estimates (GFE) ( Estimate of Cost), * HUD-1 or HUD 1A( Actual Cost) basically the same form and a yield spread premium on both, * Mortgage Servicing Transfer Agreement. Violation Penalties: * Section 8 Violations ( Referral Fees & Kickbacks), * Fines up to $10,000, * 1 year in prison. SECTION 6 Violations ( transfer of loan " servicing"( 15 days), * Single incident-damages and penalties up to $1,000, * pattern of noncompliance, * $500,000 or 1% of net worth. SECTION 10 Violations ("Escrow") *$110 penalty for each violation where Section 10 is intentionally ignored ( cannot co-mingle funds). SECTION 9 Violations ('Title Insurance") Can't require a specific title insurance company. |
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LAW: Truth-In-Lending Act ( TILA) 1968 |
REG Z Who Governs Law: Federal Reserve Board Purpose: * Disclose key terms of mortgage loans, * Provide rescission rights, * Accurate and fair billing Applicable to: * Businesses and individuals that extend credit to consumers for primarily personal, family or household purposes, * Deceptive advertising of lending terms or the offering or lending terms that lender is not able to offer ( must include APR ) Key words/ phrases: * Terms of Credit, * Cost of Credit, * Advertising, * Rescission Additional Info: * Right of Rescission ( 3 business days), * Additional disclosures required on " High Cost" mortgage loans Violation Penalties: Individual Civil Actions, * Fined up to $5,000, up to 1 year imprisonment or both, Class Action: Total recovery limited $500,000 or 1% of the creditors net worth |
