Mortgage Acts and Practices - Advertising
-An individual who helps a consumer obtain or apply for a residential mortgage loan.
-By definition they expect to receive some time of compensation for their services
-Does not include individuals who perform administrative or clerical tasks, only performs real estate brokerage activities, manufactured home retailers, and timeshare credit extenders
Any financial institution not regulated or covered by the Federal Deposit Insurance Act or the National Credit Union Administration.
-Does not maintain savings or checking accounts for its clients or customers
An individual who is a mortgage loan originator with an NMLS unique identifier and is an employee of one of the following
-Subsidiary that is owned and controlled by a depository institution or regulated by a federal banking agency
-Institution regulated by the Farm Credit Adminstration
pg 30 of SAFE Comprehensive
-Examine licensees' records and data
-Can penalize licensees as they see fit
-Can establish, create, and maintain a new mortgage loan originator licensing system, if NMLS does not meet that need
-Can supply information to the NMLS about potential licensees.
-Portion of the SAFE Act that applies to federally regulated entities that engage in mortgage-related activity.
-Entities and agents are required to become registered with NMLS
-Member banks of the Federal Reserve System
-Insured state non-member banks
-Farm Credit System lending institutions
-Federally insured credit unions
-Portion of SAFE that applies to non-federally funded entities that engage in mortgage related activities.
-Requires entities and agents to become registered with the NMLS as well as become licensed in the state they would like to operate in.
-Non-depository lending institutions
-Mortgage loan originators
-Independent contractors acting as processors or underwriters
-Loan processors and underwriters who are employees if they discuss loan terms.
Pg. 31 of SAFE Comprehensive
-Fingerprints for a criminal history background check
-Personal history and experience
-Authorization for an independent credit report
20 hours of pre-licensing NMLS-approved education
-3 hrs. federal law and regulations
-3 hrs. ethics
-2 hrs. of nontraditional mortgage lending standards
-12 hours undefined
-2nd attempt 30 days after first
-3rd attempt 30 days after second
-4th six months after 3rd
-Called the FSOC (Financial Stability Oversight Council)
Securities and Exchange Commission
Pg. 33 SAFE Comprehensive
Annual 8 hr education
-3 hrs fed law and regulations
-2 hrs ethics
-2 hrs lending standards nontraditional mortgage products
Pg. 34 SAFE Comprehensive
-Dates for renewal and reporting
-Recommended maximum penalty for each violation is $25,000
-The cost of conducting the examination may be assessed and then paid by the mortgage loan originator
Pg. 35 SAFE Comprehensive
-Director can publish findings
-Director will send notice regarding the proceedings and will set a hearing date
-After the notice and opportunity for a hearing, the cease and desist order may require future plans for compliance, if Director specifies
-Request Director Review
-Request Judicial Review
Request Director Review
Request Judicial Review
-NMLS Mortgage Call Reports (MCRs)
-Compile other reports and information
Must show unique identifier on all solicitations, mortgage loan application forms, and advertisements, including business cards and websites.
-Residential dwellings designed for the occupancy of 1 to 4 families
-Individual units of condominiums, cooperatives, mobile homes, and trailers
There was an increased concerned with organizations falsely claiming to provide assistance to homeowners struggling with late mortgage payments and threats of foreclosure
Some organizations even claimed to be associated with or endorsed by the government or government housing agencies.
-Saving consumers property from foreclosure or repossession
-Negotiating or arranging a loan modification
-Obtaining a forebearance or changing the timing of payments
-Eliminating an acceleration or balloon payment
-Negotiating/arranging a short sale, or a deed-in-lieu of foreclosure
-Negotiating/arranging an extension so a consumer could attempt to cure their credit
-Engaged in the practice of law
-Licensed in the state where the consumer of the dwelling is located
-Complies with state law and regulation regarding attorney conduct
Must disclose that
-Services are not associated or approved by the government or the consumer's lender
-Lender may not agree to change the consumer's loan
-Required to say "If you stop paying your mortgage, you could lose your home and damage your credit rating"
-Advance Fee Ban
-Properties 25 acres or more
-Business purpose loans, including commercial and agriculture
-Construction or Bridge loans
-Any assumed mortgage where lender couldn't approve successive borrower
-Any conversion of a mortgage with no new note required
-Sold into 2nd market not with Fannie/Freddie or other non-federally regulated entities
-Summary of the loan
-Summary of settlement charges
-Understanding settlement charges
-Whether or not principal can rise
-Whether or not payment can change
-Any prepayment penalties or balloon payments that apply
-Whether borrower has chosen to escrow
-Who the cost is charged to
-Lender's title insurance
-Owner's title insurance
-Required settlement services to shop for
-Government recording charges
-Initial deposits for an escrow account
-List of charges that cannot increase at settlement
-Charges with a tolerance for a 10% increase at settlement
-Charges that can change at settlement
-Charges or credit for an interest rate lock, once the rate is locked
-Adjusted origination charge
-Title services and lender's title insurance when the lender chooses provider or borrower chose one from a list provided by the lender
-Lender required settlement services chosen by the lender
-Owner title insurance when picked by lender or borrower picks from lenders list
-Government recording charges
-Title services for borrower and lender when borrower chooses provider not identified by lender
-Initial deposit for the borrower's escrow account
What are the HUD-1/HUD-1A?
-Explains the settlement process and advises borrowers they have the right to negotiate loan terms
-Reviews the protections of RESPA
-Warns borrowers that a borrower's use of false information can lead to loss of home, credit damage, and criminal prosecution for fraud.
-Description of the business arrangement including the percentage of ownership of the interest of the referring party and service provider
-An estimate of the costs of the provider
-Statement that the borrower is not required to use any particular settlement service provider.
HUD's Settlement Cost Booklet is a disclosure under what law?
Within 3 business days of application
-Provide timely and accurate information; whether in relation and information request, complaint, foreclose process, or death of a borrower.
-Ensure that borrowers are well-informed about procedures for submitting error notices and requests of information.
What is force-placed insurance?
-Date of notice
-Servicers information (name, address, number)
-Borrower must promptly insure property, includes properties address
-Description of the insurance requested
-Statement that borrowers insurance has/will expire
-Statement that hazard insurance is required
-States servicer purchased insurance is more expensive.
-Date of the notice, and a statement that the notice is the second and final notice
-Information about the insurance the servicer has or will purchase
-Cost of force-placed insurance as an annual premium, or reasonable estimate
-Statement encouraging borrower to contact servicer, with servicer info
-Brief description of loss mitigation options that may be available
-Info about how to obtain more info
-Website to access CFPB or HUD lists of homeownership counselors or organizations
Servicer must evaluate borrowers loss mitigation options available and provide written notice whether they are eligible or not
(Needs to be more than 37 days)
Borrower submits a complete loss mitigation application
-Borrower was found not eligible for options
-Borrower rejects the options given
-Borrower is non compliant with loss mitigation agreement
-Acknowledgment from the applicant
-Whether the servicing of the loan may be assigned, sold, or transferred to any other person at any time
-Whether the lender has not serviced loans in the past 3 years and will not service the loan.
-Borrowers rights for complaint resolution
-Can only be 1/6 of the total annual payments (2 months)
-Any surplus over $50 must be returned to the borrower within 30 days after escrow analysis
-Initial Escrow Statement
-Annual Escrow Analysis (Annual Escrow Statement)
Individual Action - $1,000
Class Action - $1,000, total of $500,000 or 1% net worth, whichever is less
-Fines of up to $10,000
-Up to 1 year in prison
-$75 per violation with a limit of $130,000 in a 12-month period
-Intentional violations result in a fine of $110 with no limit for multiple infractions
"StudyBlue is great for studying. I love the study guides, flashcards and quizzes. So extremely helpful for all of my classes!"Alice , Arizona State University
"I'm a student using StudyBlue, and I can 100% say that it helps me so much. Study materials for almost every subject in school are available in StudyBlue. It is so helpful for my education!"Tim , University of Florida
"StudyBlue provides way more features than other studying apps, and thus allows me to learn very quickly!??I actually feel much more comfortable taking my exams after I study with this app. It's amazing!"Jennifer , Rutgers University
"I love flashcards but carrying around physical flashcards is cumbersome and simply outdated. StudyBlue is exactly what I was looking for!"Justin , LSU