AK MLO cheat sheet

RESPA Section 8 prohibits paying or receiving fees for referrals of settlement service business; Section 10 caps escrow account deposits and requires annual escrow statements.

TILA/Regulation Z requires disclosure of the annual percentage rate (APR), finance charge, and amount financed before consummation; APR reflects the cost of credit as a yearly rate.

Ability-to-Repay/Qualified Mortgage (Regulation Z, 12 CFR 1026.43): general ATR considers income, assets, debts, and DTI; the qualified mortgage test adds product-feature and points-and-fees limits.

ECOA/Regulation B prohibits discrimination on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, and good-faith exercise of rights under the Consumer Credit Protection Act.

HMDA (Regulation C) requires covered lenders to collect and report data on applications, originations, denials, loan type, purpose, and borrower demographics.

Flood Disaster Protection Act: flood insurance is required for improved structures in Special Flood Hazard Areas on federally related loans, and the borrower must receive notice of flood zone status.

SAFE Act requires mortgage loan originators to be registered in NMLS, pass a qualified written test, complete pre-licensure education, and satisfy annual continuing education.

Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability.

FCRA/Regulation V governs credit reports: permissible purpose is required to pull a report, and adverse action notices must identify the credit reporting agency used.

Loan-to-value (LTV) = loan amount / lesser of appraised value or purchase price; higher LTV generally means higher credit risk and may require mortgage insurance.

Front-end DTI = housing payment / gross monthly income; back-end DTI = total monthly debts / gross monthly income.

Conventional loans are not government-insured; FHA, VA, and USDA loans carry government backing and each has distinct eligibility and underwriting rules.

Fixed-rate mortgages keep the same interest rate and principal-and-interest payment for the full term; adjustable-rate mortgages can change rate and payment after the initial fixed period.

Amortization: early payments are mostly interest and later payments are mostly principal; the monthly P&I payment is constant on a fixed-rate loan.

Escrow/impound accounts collect 1/12 of annual property taxes and hazard insurance with each payment; RESPA limits cushion to no more than 1/6 of annual disbursements.

Points are prepaid interest: one discount point equals 1% of the loan amount, and paying points typically lowers the note rate.

Loan estimate of closing costs includes origination charges, services the borrower cannot shop for, services the borrower can shop for, taxes, and other government recording charges.

Pre-qualification is an informal estimate of borrowing capacity; pre-approval involves verification of income, assets, and credit and is more reliable.

Application intake collects the six key pieces: income, assets, liabilities, employment, residence history, and the property/loan purpose.

The Loan Estimate must be delivered or placed in the mail no later than three business days after application and at least seven business days before consummation.

The Closing Disclosure must be received by the borrower at least three business days before consummation; a changed APR outside tolerance triggers a new three-day review period.

Tolerance categories: zero tolerance (e.g., lender-selected fees, transfer taxes), 10% cumulative tolerance (e.g., recording fees), and unlimited tolerance for items that can change.

Rate lock agreements should state the locked rate, lock period, and any extension costs; locks that expire before closing may result in a higher rate.

Appraisal independence rules prohibit loan originators from selecting, influencing, or coercing appraisers; the borrower generally receives a copy of the appraisal.

High-cost mortgage points-and-fees test under Regulation Z: total points and fees must not exceed 3% of the loan amount for loans of $100,000 or more, with tiered limits for smaller loans.

Fiduciary duty to the borrower includes loyalty, disclosure of conflicts, confidentiality, and acting in the borrower's best interest.

Steering borrowers to a loan product based on the originator's compensation rather than the borrower's qualifications is a conflict of interest and may violate RESPA and fair lending rules.

Dual compensation (receiving compensation from both borrower and lender on the same transaction) is restricted; compensation must be disclosed and consistent with the lender's policy.

Fair lending requires consistent treatment: applying different standards, pricing, or documentation requirements based on a protected class is prohibited.

Fraud indicators include altered documents, income that does not match deposits, undisclosed debts, straw buyers, and pressure to close quickly; originators must report suspected fraud.

Confidentiality: borrower nonpublic personal information may not be shared without permissible purpose or consent under the Gramm-Leach-Bliley Act privacy rules.

Advertising must be accurate and not misleading; triggering terms in advertisements require additional disclosures under Regulation Z and fair housing rules.

Alaska mortgage licensing is administered by the Division of Banking and Securities within the Department of Commerce, Community, and Economic Development; MLOs are licensed through NMLS.

Alaska SAFE Act licensing requires pre-licensure education, a passing test, a criminal background check, and a surety bond or net worth requirement for the licensee.

Alaska requires licensees to report certain events (e.g., felony convictions, administrative actions) to the regulator, typically within a defined number of days.

Alaska's residential mortgage lending statutes are found in AS 06.60 (Alaska Secure and Fair Enforcement for Mortgage Licensing Act), with regulations in 3 AAC 14.

Alaska has no state income tax and no statewide sales tax; property taxes are assessed at the local borough or municipality level.

Alaska recording and title practice: deeds and mortgages are recorded with the local district recorder; recording gives constructive notice of the lien.

Alaska usury and fee limits for residential mortgages follow the state's residential mortgage lending statutes; high-cost and points-and-fees limits generally track federal Regulation Z thresholds.

Alaska's foreclosure process for deeds of trust is generally non-judicial, conducted by a trustee with notice requirements set by statute.

RESPA Section 8 prohibits paying or receiving fees for referrals of settlement service business; Section 10 caps escrow account deposits and requires annual escrow statements.

TILA/Regulation Z requires disclosure of the annual percentage rate (APR), finance charge, and amount financed before consummation; APR reflects the cost of credit as a yearly rate.

Ability-to-Repay/Qualified Mortgage (Regulation Z, 12 CFR 1026.43): general ATR considers income, assets, debts, and DTI; the qualified mortgage test adds product-feature and points-and-fees limits.

ECOA/Regulation B prohibits discrimination on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, and good-faith exercise of rights under the Consumer Credit Protection Act.

HMDA (Regulation C) requires covered lenders to collect and report data on applications, originations, denials, loan type, purpose, and borrower demographics.

Flood Disaster Protection Act: flood insurance is required for improved structures in Special Flood Hazard Areas on federally related loans, and the borrower must receive notice of flood zone status.

SAFE Act requires mortgage loan originators to be registered in NMLS, pass a qualified written test, complete pre-licensure education, and satisfy annual continuing education.

Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability.

FCRA/Regulation V governs credit reports: permissible purpose is required to pull a report, and adverse action notices must identify the credit reporting agency used.

Loan-to-value (LTV) = loan amount / lesser of appraised value or purchase price; higher LTV generally means higher credit risk and may require mortgage insurance.

Front-end DTI = housing payment / gross monthly income; back-end DTI = total monthly debts / gross monthly income.

Conventional loans are not government-insured; FHA, VA, and USDA loans carry government backing and each has distinct eligibility and underwriting rules.

Fixed-rate mortgages keep the same interest rate and principal-and-interest payment for the full term; adjustable-rate mortgages can change rate and payment after the initial fixed period.

Amortization: early payments are mostly interest and later payments are mostly principal; the monthly P&I payment is constant on a fixed-rate loan.

Escrow/impound accounts collect 1/12 of annual property taxes and hazard insurance with each payment; RESPA limits cushion to no more than 1/6 of annual disbursements.

Points are prepaid interest: one discount point equals 1% of the loan amount, and paying points typically lowers the note rate.

Loan estimate of closing costs includes origination charges, services the borrower cannot shop for, services the borrower can shop for, taxes, and other government recording charges.

Pre-qualification is an informal estimate of borrowing capacity; pre-approval involves verification of income, assets, and credit and is more reliable.

Application intake collects the six key pieces: income, assets, liabilities, employment, residence history, and the property/loan purpose.

The Loan Estimate must be delivered or placed in the mail no later than three business days after application and at least seven business days before consummation.

The Closing Disclosure must be received by the borrower at least three business days before consummation; a changed APR outside tolerance triggers a new three-day review period.

Tolerance categories: zero tolerance (e.g., lender-selected fees, transfer taxes), 10% cumulative tolerance (e.g., recording fees), and unlimited tolerance for items that can change.

Rate lock agreements should state the locked rate, lock period, and any extension costs; locks that expire before closing may result in a higher rate.

Appraisal independence rules prohibit loan originators from selecting, influencing, or coercing appraisers; the borrower generally receives a copy of the appraisal.

High-cost mortgage points-and-fees test under Regulation Z: total points and fees must not exceed 3% of the loan amount for loans of $100,000 or more, with tiered limits for smaller loans.

Fiduciary duty to the borrower includes loyalty, disclosure of conflicts, confidentiality, and acting in the borrower's best interest.

Steering borrowers to a loan product based on the originator's compensation rather than the borrower's qualifications is a conflict of interest and may violate RESPA and fair lending rules.

Dual compensation (receiving compensation from both borrower and lender on the same transaction) is restricted; compensation must be disclosed and consistent with the lender's policy.

Fair lending requires consistent treatment: applying different standards, pricing, or documentation requirements based on a protected class is prohibited.

Fraud indicators include altered documents, income that does not match deposits, undisclosed debts, straw buyers, and pressure to close quickly; originators must report suspected fraud.

Confidentiality: borrower nonpublic personal information may not be shared without permissible purpose or consent under the Gramm-Leach-Bliley Act privacy rules.

Advertising must be accurate and not misleading; triggering terms in advertisements require additional disclosures under Regulation Z and fair housing rules.

Alaska mortgage licensing is administered by the Division of Banking and Securities within the Department of Commerce, Community, and Economic Development; MLOs are licensed through NMLS.

Alaska SAFE Act licensing requires pre-licensure education, a passing test, a criminal background check, and a surety bond or net worth requirement for the licensee.

Alaska requires licensees to report certain events (e.g., felony convictions, administrative actions) to the regulator, typically within a defined number of days.

Alaska's residential mortgage lending statutes are found in AS 06.60 (Alaska Secure and Fair Enforcement for Mortgage Licensing Act), with regulations in 3 AAC 14.

Alaska has no state income tax and no statewide sales tax; property taxes are assessed at the local borough or municipality level.

Alaska recording and title practice: deeds and mortgages are recorded with the local district recorder; recording gives constructive notice of the lien.

Alaska usury and fee limits for residential mortgages follow the state's residential mortgage lending statutes; high-cost and points-and-fees limits generally track federal Regulation Z thresholds.

Alaska's foreclosure process for deeds of trust is generally non-judicial, conducted by a trustee with notice requirements set by statute.

RESPA Section 8 prohibits paying or receiving fees for referrals of settlement service business; Section 10 caps escrow account deposits and requires annual escrow statements.

TILA/Regulation Z requires disclosure of the annual percentage rate (APR), finance charge, and amount financed before consummation; APR reflects the cost of credit as a yearly rate.

Ability-to-Repay/Qualified Mortgage (Regulation Z, 12 CFR 1026.43): general ATR considers income, assets, debts, and DTI; the qualified mortgage test adds product-feature and points-and-fees limits.

ECOA/Regulation B prohibits discrimination on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, and good-faith exercise of rights under the Consumer Credit Protection Act.

HMDA (Regulation C) requires covered lenders to collect and report data on applications, originations, denials, loan type, purpose, and borrower demographics.

Flood Disaster Protection Act: flood insurance is required for improved structures in Special Flood Hazard Areas on federally related loans, and the borrower must receive notice of flood zone status.

SAFE Act requires mortgage loan originators to be registered in NMLS, pass a qualified written test, complete pre-licensure education, and satisfy annual continuing education.

Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, national origin, familial status, or disability.

FCRA/Regulation V governs credit reports: permissible purpose is required to pull a report, and adverse action notices must identify the credit reporting agency used.

Loan-to-value (LTV) = loan amount / lesser of appraised value or purchase price; higher LTV generally means higher credit risk and may require mortgage insurance.

Front-end DTI = housing payment / gross monthly income; back-end DTI = total monthly debts / gross monthly income.

Conventional loans are not government-insured; FHA, VA, and USDA loans carry government backing and each has distinct eligibility and underwriting rules.

Fixed-rate mortgages keep the same interest rate and principal-and-interest payment for the full term; adjustable-rate mortgages can change rate and payment after the initial fixed period.

Amortization: early payments are mostly interest and later payments are mostly principal; the monthly P&I payment is constant on a fixed-rate loan.

Escrow/impound accounts collect 1/12 of annual property taxes and hazard insurance with each payment; RESPA limits cushion to no more than 1/6 of annual disbursements.

Points are prepaid interest: one discount point equals 1% of the loan amount, and paying points typically lowers the note rate.

Loan estimate of closing costs includes origination charges, services the borrower cannot shop for, services the borrower can shop for, taxes, and other government recording charges.

Pre-qualification is an informal estimate of borrowing capacity; pre-approval involves verification of income, assets, and credit and is more reliable.

Application intake collects the six key pieces: income, assets, liabilities, employment, residence history, and the property/loan purpose.

The Loan Estimate must be delivered or placed in the mail no later than three business days after application and at least seven business days before consummation.

The Closing Disclosure must be received by the borrower at least three business days before consummation; a changed APR outside tolerance triggers a new three-day review period.

Tolerance categories: zero tolerance (e.g., lender-selected fees, transfer taxes), 10% cumulative tolerance (e.g., recording fees), and unlimited tolerance for items that can change.

Rate lock agreements should state the locked rate, lock period, and any extension costs; locks that expire before closing may result in a higher rate.

Appraisal independence rules prohibit loan originators from selecting, influencing, or coercing appraisers; the borrower generally receives a copy of the appraisal.

High-cost mortgage points-and-fees test under Regulation Z: total points and fees must not exceed 3% of the loan amount for loans of $100,000 or more, with tiered limits for smaller loans.

Fiduciary duty to the borrower includes loyalty, disclosure of conflicts, confidentiality, and acting in the borrower's best interest.

Steering borrowers to a loan product based on the originator's compensation rather than the borrower's qualifications is a conflict of interest and may violate RESPA and fair lending rules.

Dual compensation (receiving compensation from both borrower and lender on the same transaction) is restricted; compensation must be disclosed and consistent with the lender's policy.

Fair lending requires consistent treatment: applying different standards, pricing, or documentation requirements based on a protected class is prohibited.

Fraud indicators include altered documents, income that does not match deposits, undisclosed debts, straw buyers, and pressure to close quickly; originators must report suspected fraud.

Confidentiality: borrower nonpublic personal information may not be shared without permissible purpose or consent under the Gramm-Leach-Bliley Act privacy rules.

Advertising must be accurate and not misleading; triggering terms in advertisements require additional disclosures under Regulation Z and fair housing rules.

Alaska mortgage licensing is administered by the Division of Banking and Securities within the Department of Commerce, Community, and Economic Development; MLOs are licensed through NMLS.

Alaska SAFE Act licensing requires pre-licensure education, a passing test, a criminal background check, and a surety bond or net worth requirement for the licensee.

Alaska requires licensees to report certain events (e.g., felony convictions, administrative actions) to the regulator, typically within a defined number of days.

Alaska's residential mortgage lending statutes are found in AS 06.60 (Alaska Secure and Fair Enforcement for Mortgage Licensing Act), with regulations in 3 AAC 14.

Alaska has no state income tax and no statewide sales tax; property taxes are assessed at the local borough or municipality level.

Alaska recording and title practice: deeds and mortgages are recorded with the local district recorder; recording gives constructive notice of the lien.

Alaska usury and fee limits for residential mortgages follow the state's residential mortgage lending statutes; high-cost and points-and-fees limits generally track federal Regulation Z thresholds.

Alaska's foreclosure process for deeds of trust is generally non-judicial, conducted by a trustee with notice requirements set by statute.