Fair lending laws, prohibited practices, and ethical standards for mortgage loan originators.
35 cards · basic cards · AI-written, checked twice. Edit anything.
- What does SAFE stand for in mortgage licensing?
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Secure and Fair Enforcement for Mortgage Licensing Act- What is the primary requirement of the SAFE Act for mortgage loan originators?
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Licensing and registration with the Nationwide Multistate Licensing System (NMLS)- What is steering in mortgage lending?
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Directing borrowers to less favorable loan terms based on protected characteristics rather than financial qualifications- What is redlining?
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Denying credit or imposing unfavorable terms based on neighborhood or property location, often correlated with race or ethnicity- What does the Fair Housing Act prohibit in mortgage lending?
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Discrimination based on race, color, religion, sex, handicap, familial status, or national origin- What does the Equal Credit Opportunity Act (ECOA) protect?
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Prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or participation in public assistance programs- What is predatory lending?
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Unfair or deceptive practices that take advantage of borrowers' lack of knowledge, inability to pay, or other vulnerabilities- What is loan flipping?
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Repeatedly refinancing a loan with little or no benefit to the borrower and charging fees each time- What is packing in mortgage lending?
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Adding unnecessary products, services, or warranties to a loan without the borrower's knowledge or consent- What does the Truth in Lending Act (TILA) require?
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Clear, accurate disclosure of credit terms including APR, finance charges, payment schedule, and other material terms- What must be disclosed about Adjustable Rate Mortgages (ARMs)?
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Initial rate, adjustment schedule, index and margin used, rate caps, and worst-case payment scenario- What is Annual Percentage Rate (APR)?
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The yearly cost of credit expressed as a percentage, including interest and fees, required to be disclosed by TILA- What is a qualified written request under TILA?
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A written request for an accounting or information regarding an account that the servicer must respond to within specified timeframes- What are the rules governing mortgage escrow accounts?
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Lenders must maintain accounts for taxes and insurance, conduct annual escrow analyses, and limit permitted balances and shortages- What is a reverse mortgage?
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A loan that allows homeowners age 62 and older to convert home equity into cash while retaining ownership
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