Federal Mortgage-Related Laws
The Core Statutes
Federal law questions test whether you know which statute governs a situation and what it requires. The anchor laws are RESPA (Real Estate Settlement Procedures Act), TILA (Truth in Lending Act, implemented by Regulation Z), ECOA (Equal Credit Opportunity Act, Regulation B), the Fair Housing Act, HMDA, and the SAFE Act. Know each law's purpose before memorizing numbers.
Numbers Worth Memorizing
- RESPA: Loan Estimate delivered within 3 business days of application; Closing Disclosure received at least 3 business days before consummation. Section 8 prohibits kickbacks and unearned fee splits.
- TILA/Reg Z: Right of rescission is 3 business days for certain refinances and home-equity loans on a principal dwelling-not for purchases or business-purpose loans. APR must be disclosed with tolerances.
- ECOA/Reg B: Adverse action notice generally within 30 days of a completed application.
- SAFE Act: Originators must be licensed or registered and meet testing and education requirements.
Common Traps
Questions love to swap the 3-day Loan Estimate with the 3-day Closing Disclosure, or to attach rescission to a purchase loan. Another favorite: confusing RESPA's settlement-service rules with ECOA's nondiscrimination rules. Read for the trigger-is this about disclosure timing, discrimination, or fees?
Worked Rule of Thumb
Ask: "What is the borrower doing?" If buying, no rescission. If refinancing a principal residence, count 3 business days after consummation for rescission. If the question mentions a kickback, think RESPA Section 8.
Study Tip
Build a one-page grid: Law | Purpose | Key Deadline | Key Prohibition. Fill it from memory, then verify.