-
Truth in Lending Act
TILA – Regulation Z
- TIL disclosure within 3 business days after receipt of written application; no later than 7th business day before
- transaction is consummated
- Corrected disclosures at least 3 business days before consummation if the APR varies by more than 1/8 of 1%
- Loan can NOT be consummated until 7 business days from initial TIL and 3 business days from redisclosure.
- (Note: The 3 days is WITHIN the 7; it does NOT total up to 10 business days).
- Consumer with an emergency may waive 7 or 3 business day waiting periods.
- Notice of rescission to lender by any owner by midnight of 3rd business day following consummation, delivery of
- TIL disclosure, or delivery of notice of right to rescind.
- Lender must return any money or property received within 20 days after receiving rescission notice
- Right to rescind extended to 3 years if creditor fails to deliver required notice and disclosures, or if creditor’s
- disclosure of finance charge is understated by more than $100.
- A creditor must retain evidence of compliance with Regulation Z for 2 years after the date of disclosures
-
Real Estate Settlement
Procedures Act
RESPA – Regulation X
- Disclosures required at time of loan application / within 3 business days of receiving a loan application (mortgage
- servicing disclosure statement, estimate of all settlement services binding for at least 10 business days from when
- GFE is provided
- Revised GFE must be provided within 3 business days of receiving info to establish changed circumstances
- A referring party must give AfBA disclosure to borrower at or prior to the time of a referral.
- Borrower has right to inspect HUD-1 one business day before settlement
- Fully completed HUD-1 must be delivered or mailed to borrower at or before settlement
- Borrower must be given initial escrow account statement showing following year’s deposits and disbursements
- at settlement, or within 45 days
- Borrower must receive annual escrow statement from servicer within 30 calendar days of end of escrow year
- Borrower must receive servicing transfer statement at least 15 days before effective date of loan transfer
- Borrower cannot be penalized for making a timely payment to prior servicer within 60 days of loan transfer
- Records must be retained for 3 years for revised GFE; for 5 years for HUD-1s, escrow accounts, and AfBAs
-
Homeownership and Equity
Protection Act
HOEPA
- Disclosures to borrower three business days prior to settlement of Section 32 loan, in addition to others required
- under TILA
- Notice must show that loan need not be completed and home can be lost.
-
Homeowners Protection Act
HPA
Lender must disclose the right to request cancellation of PMI at loan closing
-
Equal Credit Opportunity Act
ECOA – Regulation B
- Notification of incomplete application within 30 days of application.
- Notice of action taken = whether application accepted, countered, or rejected, and of right to copy of appraisal
- within 30 days of filing application.
- Lender must provide copy of appraisal within 30 days of receipt of a written request, if the request is received
- within 90 days of the notice of action (30/90/30)
- Retain original or copy of application for 25 months after notifying applicant of action taken or of incompleteness.
-
Fair Credit Reporting Act
FCRA
- Free copy of credit bureau report if requested within 60 days of adverse action.
- CRA can report negative information up to 7 years; Bankruptcy information may be reported for 10 years
- Furnishers of information have 30 days to investigate dispute.
-
Fair and Accurate Transaction
Act
FACTA
- Free copy of credit report from each CRA annually
- Fraud alert – 90 days
- Extended fraud alert – 7 years
-
Gramm-Leach-Bliley
Financial Modernization Act
GLBA – Regulation P
- Privacy Notice not later than when customer relationship established
- Opt-out Notice – prior to sharing non-public information
- Annual notices to customers
-
Home Mortgage Disclosure
Act
HMDA – Regulation C
Report information to enable monitoring of redlining and other ECOA violations
-
Do-Not-Call
- Established business relationship = purchase of seller’s good/services within last 18 months OR inquiry within
- last 3 months
- Remain on Do-Not-Call (DNC) list forever
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