CA Branch 2 flashcards
CA Branch 2 · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- CRMLA
- The California Residential Mortgage Lending Act, which licenses residential mortgage lenders and servicers under the DFPI and sets standards for lending and servicing conduct.
- CFLL
- The California Finance Lenders Law, which licenses consumer and commercial finance lenders under the DFPI and governs loan terms, disclosures, and permissible charges.
- SAFE Act
- Federal law requiring mortgage loan originators to pass a national test, complete 20 hours of pre-licensure education, submit fingerprints, and hold an NMLS license.
- Regulation Z
- The implementing regulation for the Truth in Lending Act, requiring disclosure of the annual percentage rate, finance charge, and other loan terms to consumers.
- RESPA
- The Real Estate Settlement Procedures Act, which prohibits kickbacks and unearned fees for referral of settlement-service business and requires good-faith estimates of closing costs.
- HMDA
- The Home Mortgage Disclosure Act, implemented by Regulation C, which requires covered institutions to collect and report loan application and demographic data.
- Dual compensation
- A prohibited practice in which a licensee receives compensation from both the borrower and a third party for the same service without full disclosure and consent.
- Steering
- Directing a borrower to a loan that is not suitable given the borrower's documented income, assets, and stated goals, which is prohibited conduct for licensees.
- Document alteration
- Changing a loan document, such as an application or income statement, without the borrower's knowledge, which is prohibited conduct for licensees.
- Fair Housing Act
- Federal law prohibiting discrimination in the sale, rental, and financing of housing on the basis of race, color, religion, national origin, sex, familial status, or disability.
- GLBA
- The Gramm-Leach-Bliley Act, which requires financial institutions to protect nonpublic personal information and to disclose their privacy practices to consumers.
- Conflict of interest
- A situation in which a licensee's personal or financial interest could influence the licensee's recommendation, requiring written disclosure and borrower acknowledgment.
- NMLS unique identifier
- The unique number assigned to a licensee in the Nationwide Multistate Licensing System, which must appear clearly and conspicuously in all advertisements.
- Trigger terms
- Specific payment amounts, interest rates, or down payment figures in an advertisement that require disclosure of the APR and other required terms.
- APR disclosure
- The requirement that an advertised rate include the annual percentage rate, the APR's basis, and any conditions affecting the rate, such as a minimum loan amount.
- Pre-approved claim
- A statement that may not be used in advertising unless the licensee has completed the underwriting review and the commitment is binding.
- Testimonial disclosure
- A requirement that endorsements reflect the actual experience of the person giving them and disclose any compensation paid for the endorsement.
- Fictitious business name
- A name other than the licensee's licensed name used in business or advertising, which must be registered with the licensing agency before use.
- Record retention
- The requirement to maintain books and records of mortgage loan transactions for at least 3 years after the final transaction or loan payoff, whichever is later.
- Annual report
- A report a licensee must file with the DFPI or DRE within the time specified by the agency, containing information about loan volume and business operations.
- Change of control notice
- A notification a licensee must file with the licensing agency when ownership, control, or principal officers change, generally within 30 days.
- Suspicious activity report
- A report filed with FinCEN when a licensee knows or suspects a transaction involves illegal activity, with no notice to the subject of the report.
- BSA/AML program
- The Bank Secrecy Act requirement for a designated compliance officer, ongoing training, and independent testing of anti-money-laundering controls.
- Electronic records
- Records that must be retrievable in a legible format and retained for the same period as paper records, with no destruction during a pending investigation.
- Complaint acknowledgment
- The requirement that a licensee acknowledge a written consumer complaint within the time set by agency rule, typically 15 business days.
- Qualified written request
- A borrower request under RESPA that requires acknowledgment within 5 business days and a substantive response within 30 days, with a possible 15-day extension.
- Complaint log
- A record of the complainant's name, the nature of the complaint, the date received, the action taken, and the date the response was sent.
- Anti-retaliation rule
- A prohibition on retaliating against a borrower for filing a complaint or exercising a legal right, and on discouraging contact with a regulator.
- FCRA dispute duty
- The requirement that a licensee investigate a consumer's dispute of inaccurate credit information and correct or delete information that cannot be verified.
- Fiduciary duty
- The duty a licensee owes a borrower, including loyalty, confidentiality, disclosure, and the obligation to act in the borrower's best interest.
- Material fact disclosure
- The duty to disclose all material facts to the borrower, including conflicts of interest, third-party compensation, and relationships with service providers.
- Continuing education
- The requirement that a licensee maintain competence by completing ongoing coursework, including ethics education, as required by the licensing agency.