The process of evaluating, originating and servicing mortgage loans contains numerous requirements that come from several regulations. Those regulations cover various aspects of the transaction - from product planning through servicing. Failure to comply with each and every requirement can result in liability in one form or another.
This program focuses on origination of closed-end loans secured by real property. It does not cover open-end credit or credit that is unsecured or secured by collateral other than real estate or a dwelling.
WHY?
This four-part program provides a very comprehensive review of the mortgage lending process from initial product development to origination to end of loan life servicing. The program breaks down the lending process into the appropriate phases. It explores which regulations apply to each phase and which actions are required by those regulations. Participants receive a detailed manual that serves as a handbook long after the program is completed.
The laws and regulations covered in the program include:
Equal Credit Opportunity Act/Regulation B;
Fair Housing Act/Agency regulations;
Home Mortgage Disclosure Act/Regulation C;
Truth in Lending Act/Regulation Z;
Real Estate Settlement Procedures Act/Regulation X;
Flood Disaster Protection Act/Agency Regulations;
Fair Credit Reporting Act/Regulations V;
Safe Act/Regulation G;
Homeowner Protection Act; and
Unfair, Deceptive or Abusive Acts or Practices.
The phases of the mortgage lending process covered in the program include:
Session 1
Strategic considerations
Regulations or guidance (Each rule - coverage/exemptions)
Emerging issues
Processes (developing procedures and operating systems, training staff, monitoring activities, and setting controls)
Use and role of third parties
Policies and Procedures
TIL (1026.36(j))
RESPA - servicing (1024.38, .39, .40, .41))
Product Design
Applicability of laws and regulations
Types of fees assessed
Finance charges (1026.4)
Prohibition on fees
TRID - Fee for preparing and delivery CD(1026.19(f)(5))
RESPA - Fee for escrow and TIL (1024.12)
Delivery systems
Loan originator qualifications
SAFE Act
TIL (1026.36(f))
Loan Originator Training (1026.36(f)(3)(iii))
Loan Origination Compensation rules (1026.36)
Prohibition on Financing Credit Insurance (1026.36)
e-Sign requirements
Pre-Application
Marketing
Applicability of laws and regulations
TIL advertising
Use of APR in Oral Disclosures (1026.26)
UDAAP
FTC Endorsement Guidelines
Steering Risk
Discrimination Issues
Session 2
Application
What is an application
How the term differs from one regulation to another
Prequalifications and preapprovals;
Taking Applications
Written vs. Oral Applications
New URLA
Obtaining credit reports
HUD Guidance on LEP
Rules Concerning Requests for Information
Form Issues
Collecting Government Monitoring Information
Regulation B
Part 27
HMDA
Discrimination Issues
Prohibition on Steering (1026.36)
Adverse Action
Restrictions
TRID Fee Restrictions
TRID Verifying Information
Prohibition on Kickbacks and Unearned Fees (1024.14())
Delivering Disclosures
TRID Written List of Providers
TRID Toolkit
TRID Loan Estimates (Initial and Revised)
Affiliated Business Disclosure
List of Homeownership Counseling Organizations
Underwriting
Rules Concerning Evaluation of Information
Evaluating Temporary Leave Income
Ability to Repay (1026.43)
Credit Score Disclosures
Flood Determination
Standard Flood Hazard Determination form
Determination fees
Session 3
Pricing
Risk-Based pricing
Limitation on Rates (1026.30)
Origination (Up to and including origination)
Amount of flood insurance, if any;
Escrow Requirements
TIL HPML (1026.35)
RESPA
Initial Escrow disclosure
Flood Insurance
Valuation Independence (1026.42)
Delivering Disclosures
TRID Closing Disclosures (Initial and Revised)
Tolerance Check
Special flood Hazard Determination Form
Flood - Notice of Servicer's Identity
At origination
Transfer of Servicing
Right of Rescission
Section 32 Disclosure
Appraisals
Regulation B
Notice
Copy of the Appraisal
Regulation Z - HPML (1026.35)
Notice
Copy of the Appraisal
NMSLR ID Number (1026.36(g))
Restrictions
Section 32 (1026.32)
RESPA Return on Ownership Interest (1024.15(b)(3))
Rules Concerning Extensions of Credit (Spousal signature rules)
Session 4
Servicing
Furnishing Credit Information (ECOA & FCRA)
FCRA Accuracy and Integrity
FCRA Notice of Negative Information
Reporting HMDA Data
Force-Placing Insurance
RESPA (1024.37))
Flood Insurance
Payment processing (1026.36(c)(1))
Pyramiding of late charges (1026.36(c)(2)
Payoff Statements (1026.36(c)(3))
Statements (1026.41)
Escrows
RESPA - Timely Escrow Payments and Treatment of Escrow account Balances (1024.34(a))
RESPA - Annual Escrow Disclosures
TIL - Escrow Cancellation Notice
Transfer of Servicing
RESPA (1024.33(b)(1))
TIL (1026.39)
Flood
RESPA Error Resolution Procedures (1024.35)
RESPA Requests for Information (1024.36)
Loss Mitigation
Foreclosure
Termination
WHO?
The program is designed for loan officers, compliance officers, loan support staff, marketing staff, auditors, and any others with responsibilities related to and aspect of mortgage loans.