CT MLO cheat sheet

RESPA Section 8: no fee, kickback, or thing of value for referrals of settlement service business; Section 9 bars sellers from requiring title insurance from a particular provider; Section 10 caps escrow deposits at 1/6 of annual charges.

TILA/Regulation Z: disclose APR and finance charge within 3 business days of application; revised disclosures required before consummation when APR changes beyond tolerance (generally 1/8% for regular, 1/4% for irregular transactions).

Ability-to-Repay/Qualified Mortgage: general ATR considers 8 underwriting factors including income, debt, credit, and DTI; points-and-fees QM cap is 3% for loans at or above $100,000, scaling down to 1.5% for loans under $20,000.

ECOA/Regulation B: creditors may not discriminate on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance; adverse action notice within 30 days of a completed application.

HMDA/Regulation C: collect and report covered loan data including loan type, purpose, occupancy, amount, rate spread, and action taken; closed-end reporting thresholds are set by volume.

SAFE Act: loan originator licensing and registration, unique identifier on documents, annual continuing education of 8 hours (including 3 hours federal law, 2 hours ethics, 2 hours non-traditional lending, 1 hour elective).

FHA/VA/USDA: FHA requires MIP and sets loan limits by county; VA provides a partial guaranty with no monthly mortgage insurance but charges a funding fee; USDA targets rural areas with income limits and upfront/annual guarantee fees.

Fair Housing Act and SCRA: FHA prohibits discriminatory advertising and steering; SCRA caps pre-service mortgage rates at 6% and requires foreclosure protections for servicemembers.

PITI = principal + interest + property taxes + hazard insurance; add mortgage insurance, HOA dues, or flood insurance to derive the qualifying housing payment.

Front-end DTI = housing payment / gross monthly income; back-end DTI = all monthly obligations / gross monthly income; conventional benchmarks commonly 28%/36%, with automated approvals allowing higher.

Loan-to-value (LTV) = loan amount / lesser of sales price or appraised value; CLTV adds subordinate financing to the numerator.

Amortization: fixed-rate fully amortizing payment uses the annuity formula; on a 30-year fixed at 6%, the monthly payment per $10,000 borrowed is about $59.96.

Escrow/impound account: monthly deposit = annual taxes and insurance divided by 12, subject to RESPA cushion limits; shortage and surplus rules govern adjustments.

Appraisal and valuation: sales comparison approach for residential resale, cost approach for new or unique construction, income approach for investment property; USPAP governs appraisal practice.

Title and closing: title insurance protects lender and owner against covered defects; ALTA policy forms are standard; recording gives constructive notice of the deed and mortgage.

Loan types: conventional (conforming vs non-conforming/jumbo), FHA, VA, USDA, plus portfolio and non-QM; conforming limits are published annually by FHFA.

Application intake: collect the six pieces of information (borrower name, income, SSN, property address, estimated value, loan amount) to start the TILA disclosure clock.

Pre-qualification vs pre-approval: pre-qualification is an unverified estimate; pre-approval involves documented income, assets, and credit review and is more reliable for offers.

Documentation: verify income with pay stubs, W-2s, and tax returns; verify assets with statements; source large deposits; document gifts with a gift letter and transfer evidence.

Credit report review: identify disputed accounts, collections, judgments, and inquiries; rapid rescoring can correct errors but cannot remove accurate negative information.

Disclosures and timing: Loan Estimate within 3 business days of application, Closing Disclosure at least 3 business days before consummation, intent-to-proceed before fees are collected.

Lock and float: a rate lock commits the lender to a rate for a set period; extensions may carry fees; floating leaves the rate subject to market movement until lock.

Pipeline management: order appraisal and title early, track conditions, and clear underwriting conditions before the closing date; re-verify employment and assets near closing.

Advertising and solicitation: include NMLS unique identifier on ads; avoid deceptive claims; maintain TCPA-compliant consent for calls and texts.

Fiduciary-type duties: act in the borrower's best interest, disclose conflicts, and avoid self-dealing or referral arrangements that benefit the originator undisclosed.

Fraud indicators: altered documents, income inconsistent with occupation, undisclosed debts, occupancy misrepresentation (e.g., claiming primary residence for an investment property), and straw buyers.

Bribery and kickbacks: RESPA Section 8 prohibits giving or receiving anything of value for referrals; bona fide services must be disclosed and reasonably priced.

Confidentiality: protect nonpublic personal information under GLBA privacy rules; share only as permitted or with authorization; safeguard and dispose of records securely.

Fair and ethical treatment: consistent standards regardless of protected class, no steering to higher-cost products, and clear explanation of loan terms and costs.

Competence and accuracy: do not submit or certify information you know or should know is false; correct errors promptly and document the correction.

Red flags and reporting: suspicious activity may require escalation under the BSA/AML program; do not tip off the subject of a report.

Licensing: Connecticut mortgage lenders, brokers, and originators are licensed by the Department of Banking (now the Department of Financial Institutions); originators must be licensed and registered in NMLS.

Education and testing: Connecticut originator applicants complete 20 hours of pre-licensing education and pass the national and state components of the SAFE test; annual continuing education is 8 hours.

Surety bond and net worth: licensees must maintain a surety bond and minimum net worth requirements set by statute and regulation, scaled to business volume.

First mortgage loan originator conduct: written agreements with borrowers, disclosure of fees, and prohibitions on charging fees for services not performed; records retention requirements apply.

Connecticut mortgage statutes: Chapter 668 (Conn. Gen. Stat. Sections 36a-485 et seq.) governs mortgage licensing, conduct, and enforcement; the Banking Commissioner may examine and discipline licensees.

High-cost home loan protections: Connecticut law restricts points and fees, prepayment penalties, and balloon payments on high-cost mortgages and requires counseling for certain loans.

Advertising and records: licensees must include the license number in advertising and maintain books and records available for examination; violations can result in fines, suspension, or revocation.

Escrow and servicing: state law sets escrow account requirements and notice rules; foreclosure mediation and notice-of-default requirements apply to Connecticut residential property.

TRID tolerance categories: zero tolerance for lender fees and transfer taxes, 10% cumulative tolerance for certain third-party fees, and unlimited tolerance for prepaid interest and escrow deposits.

Regulation Z advertising: trigger terms such as a rate or payment require disclosure of APR, payment amount, and other required terms; the word 'fixed' requires disclosure of the period if not permanent.

BSA/AML: lenders maintain a written program with a designated compliance officer, training, and independent testing; SARs are filed with FinCEN for suspicious transactions.

FCRA/Regulation V: furnishers must report accurate information; consumers may dispute; risk-based pricing notices and adverse action notices apply when credit terms are unfavorable.

GLBA privacy: provide initial and annual privacy notices and allow opt-out of sharing nonpublic personal information with nonaffiliated third parties, subject to exceptions.

Flood Disaster Protection Act: require flood insurance for improved property in a special flood hazard area, provide notice, and document escrow of flood insurance for covered loans.

HOEPA/Regulation Z high-cost mortgage triggers: points and fees over 5% of the loan amount (or adjusted dollar threshold), APR above the average prime offer rate by 6.5 points for first liens, or prepayment penalties beyond limits.

Fair lending enforcement: ECOA, FHA, and HMDA data feed fair lending exams; disparate treatment and disparate impact analyses examine pricing and approval patterns.

Interest types: fixed rate stays constant for the term; adjustable rate has an initial fixed period, then adjusts by index plus margin, subject to periodic and lifetime caps.

Balloon and interest-only loans: balloon pays off a lump sum at maturity; interest-only payments do not reduce principal during the IO period, so amortization begins later.

Points and buydowns: one discount point equals 1% of the loan amount and generally lowers the rate; origination points are lender fees, discount points are prepaid interest.

Qualifying ratios and reserves: reserves are measured in months of PITI; two or more months are common for primary residences, with more required for investment properties.

Property types: SFR, condo (warrantable vs non-warrantable), townhome, PUD, and 2-4 unit properties; each has distinct appraisal and underwriting rules.

Closing costs: include lender fees, title, appraisal, recording, prepaid interest, and escrow deposits; seller concessions are limited by LTV and loan program.

Mortgage insurance: FHA MIP includes upfront and annual components; conventional PMI may be borrower-paid, lender-paid, or single-premium, and cancellation rules apply at 78% and 80% LTV.

Secondary market: Fannie Mae and Freddie Mac buy conforming loans; Ginnie Mae securitizes government-insured loans; investors set eligibility and pricing.

Loan Estimate accuracy: compare the LE to the CD at closing; changed circumstances may permit a revised LE, but revisions must be delivered within 3 business days of learning of the change.

Borrower intent to proceed: fees other than a reasonable credit report fee cannot be collected until the borrower indicates intent to proceed.

Self-employed income: analyze tax returns, profit-and-loss statements, and business returns; use a stable two-year history unless documented exceptions apply.

Assets and reserves: verify down payment, closing costs, and reserves; document liquidation of assets and source of funds for large deposits.

Appraisal process: provide the appraiser access and accurate property data; do not influence value; borrower receives a copy of the appraisal promptly.

Closing preparation: confirm closing date, final figures, title commitment, and hazard/flood insurance; the CD must be received 3 business days before consummation.

Compliance documentation: retain the loan file, disclosures, and evidence of delivery; the file must support the decision and demonstrate compliance.

Rate lock and disclosure: a changed rate may require a revised LE; lock confirmation and expiration must be documented and communicated.

Truth in advertising: claims about rates, approvals, or savings must be accurate and supportable; avoid bait-and-switch and misleading guarantees.

Conflicts of interest: disclose any ownership or financial interest in affiliated settlement service providers and comply with affiliated business arrangement rules.

Borrower communication: explain costs, risks, and alternatives in plain language; do not pressure borrowers to accept terms they do not understand.

Record integrity: never alter, backdate, or destroy documents to satisfy a condition; maintain an audit trail for all changes.

Anti-money laundering ethics: verify identity, monitor for structuring and unusual transactions, and escalate concerns rather than ignore red flags.

Fair servicing and loss mitigation: apply consistent standards, evaluate borrowers for available options, and avoid deceptive dual-tracking practices.

Professional accountability: self-report errors, cooperate with examinations, and avoid conduct that undermines public confidence in the industry.

Regulator: the Connecticut Department of Banking (Department of Financial Institutions) supervises mortgage licensees; NMLS handles applications and renewals.

License maintenance: renew annually through NMLS, complete continuing education, and report changes in name, address, or employment within required timeframes.

Prohibited conduct: fraud, misrepresentation, and unlicensed activity are grounds for discipline; the Commissioner may issue cease-and-desist orders and civil penalties.

Disclosure and agreements: written broker agreements must state services and fees; borrowers must receive required state disclosures at application or before closing.

Examination authority: the Commissioner may examine books and records and require reports; licensees must respond to inquiries and produce records.

Connecticut foreclosure: pre-foreclosure notice and mediation requirements apply; the emergency mortgage assistance program (CHFA) may be available to eligible borrowers.

Reverse mortgages: Connecticut requires counseling and specific disclosures for reverse mortgage transactions; lenders must comply with federal and state rules.

Penalties: violations may result in license suspension or revocation, restitution, and fines; unlicensed origination is subject to enforcement action.

Regulation Z right of rescission: 3 business days for certain refinances and home equity loans on a principal dwelling; not applicable to purchases or first-lien construction loans.

Adverse action timing: notice within 30 days of a completed application, or within 30 days of taking adverse action on an incomplete application, with reasons or a right to request them.

SAFE Act unique identifier: originators must provide their NMLS ID on applications, solicitations, and business cards; the ID is publicly searchable.

RESPA servicing transfer: notify borrower at least 15 days before transfer; during the 60-day transfer period, payments cannot be treated as late if sent to the old servicer.

Qualified Written Request: servicer must acknowledge within 5 business days and respond within 30 business days, with a possible 15-day extension.

Regulation Z loan originator compensation: compensation cannot be based on loan terms or conditions other than the amount of credit extended, and dual compensation is prohibited.

HMDA data: report ethnicity, race, sex, age, and income, plus loan pricing and property data; public data is used in fair lending analysis.

FHA/VA overlays: lenders may impose stricter credit or reserve requirements than agency minimums; overlays must be applied consistently and disclosed.

Payment calculation example: $200,000 at 6% for 30 years gives a principal-and-interest payment of about $1,199.10 per month.

APR vs note rate: APR includes certain finance charges such as points and fees, so it is generally higher than the note rate and is used for comparison.

Total interest: total of payments minus principal; longer terms and higher rates increase total interest substantially.

Loan estimate of funds: cash to close equals loan amount minus payoff of existing liens, minus closing costs, plus prepaid items and escrow deposits, adjusted for credits.

Appraisal approaches: reconciliation weights the most relevant approach; the sales comparison approach is most common for owner-occupied residences.

Title insurance: lender's policy protects the lender's interest; owner's policy protects the owner; simultaneous issue often reduces cost.

Occupancy: primary residence, second home, and investment property carry different pricing and underwriting; misrepresentation is fraud.

Loan limits and guidelines: conforming, FHA, and VA limits differ; program guidelines define eligible borrowers, properties, and documentation.

Initial disclosures: provide the Loan Estimate and required booklets (e.g., settlement services and, where applicable, ARM or reverse mortgage disclosures) within required timeframes.

Borrower interview: gather the loan purpose, occupancy, income, assets, and credit profile; identify program eligibility early to avoid rework.

Credit analysis: review scores, tradelines, utilization, and derogatory items; calculate DTI using verified obligations and documented income.

Condition management: distinguish prior-to-docs, prior-to-funding, and post-closing conditions; clear them in order to keep the closing on schedule.

Third-party coordination: order title, appraisal, flood certification, and insurance; confirm each is received and reviewed before closing.

Fraud prevention: verify identity, compare documents for consistency, and escalate suspected fraud to the compliance team.

Post-closing: confirm disbursement, record the mortgage, and deliver final disclosures; retain records per federal and state requirements.

Customer service: set expectations about timelines and costs, return calls promptly, and document communications.

Steering: directing borrowers to products based on the originator's compensation rather than the borrower's interest is unethical and may violate fair lending law.

Undisclosed compensation: accepting fees from third parties without disclosure violates RESPA and ethical standards.

Occupancy fraud: helping a borrower misrepresent intent to occupy is fraud; document the borrower's actual intent.

Document falsification: altering pay stubs, bank statements, or appraisals is fraud and grounds for license revocation.

Privacy: do not discuss borrower information with unauthorized parties; use secure channels for documents and data.

Fairness: apply the same underwriting and pricing standards to all applicants; document exceptions and the reasons.

Whistleblowing and escalation: report suspected fraud or misconduct to compliance or the regulator as required; retaliation is prohibited.

Pre-licensing: complete 20 hours of NMLS-approved education, pass the SAFE test, submit fingerprints for a criminal background check, and authorize a credit report.

Continuing education: 8 hours annually, including 3 hours federal law, 2 hours ethics, 2 hours non-traditional lending, and 1 hour Connecticut-specific content.

Sponsorship: originators must be sponsored by a licensed Connecticut lender or broker; sponsorship changes must be reported in NMLS.

Fees and charges: state law limits certain fees and requires disclosure; charging for services not performed is prohibited.

Records: maintain loan and business records for the period required by statute and make them available to the Commissioner on request.

Advertising: include the licensee's name and NMLS ID; advertising must not be false or misleading.

Consumer complaints: licensees must respond to Department inquiries and complaints; unresolved complaints can lead to disciplinary action.

Enforcement: the Commissioner may impose fines, restitution, probation, suspension, or revocation, and may refer matters for criminal prosecution.

Regulation Z high-cost mortgage: no balloon payments, no negative amortization, limited prepayment penalties, and required counseling before closing.

TILA disclosure of broker fees: broker compensation must be reflected in the finance charge and disclosed; lender-paid broker compensation affects the points-and-fees test.

RESPA escrow: servicer must provide an initial escrow statement and annual escrow account statements; surplus of $50 or more must be refunded.

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

Equal Credit Opportunity Act: prohibits discrimination in credit transactions; creditors must provide written notice of action taken.

SAFE Act: prohibits unlicensed origination; state-licensed originators must meet federal minimum standards.

Regulation Z loan originator rule: prohibits steering to a loan that is not in the borrower's interest when the originator receives greater compensation.

Fraud enforcement: the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) and the False Claims Act impose liability for mortgage fraud against federally insured institutions.

Amortization schedule: early payments are mostly interest; later payments are mostly principal; the crossover point depends on the rate and term.

Biweekly payments: 26 half-payments per year equal 13 full payments, shortening the term and reducing total interest.

Prepayment: check for prepayment penalties; on high-cost and qualified mortgages, penalties are restricted or prohibited.

Home equity: HELOC has a draw period and repayment period, usually variable rate; closed-end second mortgage is a lump sum with fixed or adjustable rate.

Reverse mortgage: available to borrowers 62 and older; proceeds are based on age, value, and rate; loan becomes due on death, sale, or failure to maintain the property.

Construction loans: short-term, interest-only during the build, with draws; converted to permanent financing at completion.

Investor property: qualifying uses rental income (e.g., 75% of market rent) and reserves; LTV limits are lower than for primary residences.

Closing costs and seller credits: seller concessions are limited by program and LTV; credits cannot exceed actual closing costs.

Application completeness: a completed application triggers disclosure timing; incomplete applications require an adverse action or notice of incompleteness.

Income calculation: use stable, documented income; overtime, bonus, and commission require a history; rental income uses a vacancy factor.

Asset verification: review statements for the most recent two months; large deposits must be sourced and explained.

Credit report disputes: disputed accounts may need resolution; rapid rescoring requires documentation from creditors.

Lock management: track lock expiration and request extensions before expiration; disclose any extension fees.

Pre-closing: re-verify employment and assets; obtain a final title update and confirm insurance coverage.

Closing: review the CD with the borrower, confirm the 3-business-day receipt, and ensure funds are available for disbursement.

Post-closing audits: respond to investor and compliance requests; correct errors and document remediation.

Honest communication: do not promise approvals or rates that are not available; disclose risks and costs clearly.

Referral relationships: disclose affiliated business arrangements and provide a written disclosure of the nature of the relationship.

Borrower best interest: consider the borrower's circumstances and offer products that meet their needs, not just the highest compensation.

Confidentiality and data security: use secure systems, limit access, and report breaches as required.

Fair treatment: avoid discriminatory practices and ensure equal access to credit.

Integrity of records: keep accurate records and never misrepresent the status of a loan or condition.

Accountability: cooperate with audits and regulators, and take responsibility for errors.

License types: mortgage lender, mortgage broker, and mortgage loan originator licenses are issued through NMLS; each has distinct requirements.

Financial responsibility: licensees must maintain surety bonds and net worth; failure can result in suspension.

State exams: Connecticut-specific content is included in the SAFE test; continuing education must include state law content.

Consumer protection: Connecticut law prohibits unfair or deceptive acts and practices in mortgage lending and servicing.

Foreclosure and loss mitigation: notice requirements and mediation programs apply; servicers must follow state and federal rules.

High-cost loans: state law restricts fees, penalties, and terms for high-cost mortgages and requires disclosures.

Examination and reporting: licensees must file reports and respond to examinations; failure to comply is a violation.

Discipline: penalties include fines, restitution, probation, suspension, and revocation; the Commissioner may also seek injunctive relief.

Regulation Z record retention: retain evidence of compliance for two years after consummation; RESPA requires retention of escrow and servicing records for specified periods.

TILA advertising: if an ad states a rate or payment, it must disclose the APR and whether the rate is fixed or adjustable.

ECOA spousal rules: creditors may not require a spouse's signature unless the spouse's income or assets are relied upon or the borrower lives in a community property state.

HMDA exemption: certain small-volume lenders are exempt; covered lenders report annually and correct errors promptly.

BSA/AML thresholds: file a Currency Transaction Report for cash transactions over $10,000; file a SAR for suspicious transactions meeting thresholds.

FHA loss mitigation: servicers must evaluate borrowers for available options and follow required timelines before foreclosure.

VA: the VA guaranty protects the lender against loss; the borrower's entitlement can be restored under certain conditions.

USDA: income limits and property eligibility rules apply; guarantee fees are charged upfront and annually.

APR calculation: includes the note rate, points, and certain closing costs; it is an annualized cost of credit used for comparison, not the monthly payment.

Loan-to-value and pricing: higher LTV generally increases pricing and mortgage insurance requirements; lower LTV improves pricing.

Credit score impact: higher scores generally lower pricing; score thresholds affect program eligibility and mortgage insurance.

Property valuation: appraisals are based on recent comparable sales, adjustments, and market conditions; appraisal review may require a second opinion.

Title: liens, easements, and encumbrances affect marketability; title insurance covers certain defects.

Escrow analysis: annual analysis projects disbursements and sets monthly deposits; shortages may be spread over 12 months.

Loan programs: conventional, FHA, VA, USDA, and non-QM differ in credit, DTI, reserves, and property standards.

Refinance types: rate-and-term lowers rate or changes term; cash-out provides equity; each has different LTV limits.

Pre-application: discuss goals, timeline, and budget; explain the process and required documents.

Disclosure delivery: provide disclosures within required timeframes and document the method and date of delivery.

Underwriting submission: submit a complete file with a cover letter explaining compensating factors and exceptions.

Appraisal review: confirm the appraisal is accurate and supported; request a reconsideration of value with evidence if needed.

Closing disclosure review: compare the LE and CD; explain changes and obtain the borrower's acknowledgment.

Funding: confirm the wire instructions and verify the borrower's identity to prevent wire fraud.

Servicing transfer: notify the borrower of the transfer and provide the new servicer's contact information.

Compliance: follow all federal and state requirements and document exceptions.

Truthfulness: never misrepresent loan terms, costs, or approval likelihood; provide accurate information.

Conflicts: avoid arrangements that create a conflict of interest; disclose and manage them.

Fairness: treat all borrowers equally and avoid discriminatory practices.

Confidentiality: protect borrower information and use it only for legitimate purposes.

Integrity: do not falsify documents or encourage others to do so.

Accountability: correct errors promptly and cooperate with regulators.

Professionalism: maintain competence and follow the law and industry standards.

Licensing: mortgage lenders, brokers, and originators must be licensed by the Connecticut Department of Banking (Department of Financial Institutions) and registered in NMLS.

Education: 20 hours of pre-licensing education and 8 hours of annual continuing education, including Connecticut-specific content.

Bonding: licensees must maintain a surety bond and net worth requirements set by statute and regulation.

Conduct: written agreements, fee disclosures, and prohibitions on charging for services not performed.

Examinations: the Commissioner may examine records and require reports; licensees must cooperate.

Advertising: include the licensee's name and NMLS ID; no false or misleading claims.

Foreclosure: notice and mediation requirements apply; loss mitigation rules must be followed.

Penalties: fines, restitution, suspension, revocation, and referral for criminal prosecution.

RESPA Section 6: servicers must respond to borrower inquiries and provide timely payoff statements; fees for payoff statements are restricted.

Regulation Z: provide a list of homeownership counseling organizations within 3 business days of application for certain loans.

ECOA: creditors must provide a copy of the appraisal or valuation to the applicant promptly upon completion.

HMDA: report the rate spread and total loan costs; data is used for fair lending analysis.

SAFE Act: originators must be licensed or registered and must use their unique identifier.

Flood insurance: escrow required for loans in special flood hazard areas unless exempt.

HOEPA: high-cost mortgages require counseling and restrict terms.

Fair lending: disparate impact and disparate treatment are enforced under ECOA and FHA.

PITI and reserves: reserves are measured in months of PITI and are required based on LTV and program.

DTI: front-end and back-end ratios are used to assess capacity; compensating factors may allow higher ratios.

LTV: loan amount divided by the lesser of sales price or appraised value; CLTV includes subordinate liens.

Amortization: fixed-rate payments are level; adjustable-rate payments change with the index and margin.

Mortgage insurance: required for high LTV loans; cancellation rules apply at 78% and 80% LTV.

Title: title insurance protects against covered defects; recording gives notice.

Appraisal: sales comparison, cost, and income approaches; reconciliation selects the most relevant.

Loan programs: conventional, FHA, VA, USDA, and non-QM have different eligibility and underwriting rules.

Application: collect the six pieces of information to start disclosure timing.

Disclosures: provide the Loan Estimate within 3 business days and the Closing Disclosure at least 3 business days before consummation.

Documentation: verify income, assets, and credit; source large deposits.

Underwriting: submit a complete file and respond to conditions promptly.

Appraisal: order early and review for accuracy; provide a copy to the borrower.

Closing: confirm figures, title, and insurance; review the CD with the borrower.

Funding: verify wire instructions and borrower identity to prevent fraud.

Post-closing: retain records and respond to audits.

Honesty: provide accurate information about rates, costs, and approval likelihood.

Conflicts: disclose affiliations and avoid undisclosed compensation.

Fairness: apply consistent standards and avoid steering.

Confidentiality: protect borrower information and use secure channels.

Integrity: never falsify documents or encourage misrepresentation.

Accountability: correct errors and cooperate with regulators.

Professionalism: maintain competence and follow the law.

Regulator: Connecticut Department of Banking (Department of Financial Institutions) supervises mortgage licensees.

Licensing: mortgage lender, broker, and originator licenses are issued through NMLS.

Education: 20 hours pre-licensing and 8 hours annual continuing education.

Bonding: surety bond and net worth requirements apply.

Conduct: written agreements and fee disclosures; no charges for services not performed.

Examinations: the Commissioner may examine records and require reports.

Foreclosure: notice and mediation requirements apply.

Penalties: fines, restitution, suspension, revocation, and criminal referral.

TILA/Regulation Z: disclose the APR and finance charge within 3 business days of application; provide a revised disclosure when the APR changes beyond tolerance.

RESPA: no kickbacks for referrals; escrow deposits are limited to 1/6 of annual charges; servicing transfer notice at least 15 days before transfer.

ATR/QM: consider eight underwriting factors; points-and-fees caps apply; high-cost mortgages have additional restrictions.

ECOA/Regulation B: prohibit discrimination and require adverse action notice within 30 days.

HMDA: collect and report covered loan data; used for fair lending analysis.

SAFE Act: licensing, unique identifier, and 8 hours of annual continuing education.

FHA/VA/USDA: government programs with specific insurance, guaranty, and eligibility rules.

Fair Housing Act and SCRA: prohibit discrimination and provide servicemember protections.

PITI: principal, interest, taxes, and insurance; add mortgage insurance and HOA dues for qualifying.

DTI: housing payment and total obligations divided by gross monthly income.

LTV: loan amount divided by the lesser of sales price or appraised value.

Amortization: fixed-rate payments are level; adjustable-rate payments change with the index and margin.

Escrow: monthly deposits based on annual taxes and insurance, subject to RESPA limits.

Appraisal: sales comparison, cost, and income approaches; reconciliation selects the most relevant.

Title: title insurance protects against covered defects; recording gives notice.

Loan programs: conventional, FHA, VA, USDA, and non-QM differ in eligibility and underwriting.

Application intake: collect the six pieces of information to start the disclosure clock.

Disclosures: Loan Estimate within 3 business days; Closing Disclosure at least 3 business days before consummation.

Documentation: verify income, assets, and credit; source large deposits.

Underwriting: submit a complete file and clear conditions promptly.

Appraisal: order early and review for accuracy; provide a copy to the borrower.

Closing: confirm figures, title, and insurance; review the CD with the borrower.

Funding: verify wire instructions and borrower identity to prevent fraud.

Post-closing: retain records and respond to audits.

Honesty: provide accurate information about rates, costs, and approval likelihood.

Conflicts: disclose affiliations and avoid undisclosed compensation.

Fairness: apply consistent standards and avoid steering.

Confidentiality: protect borrower information and use secure channels.

Integrity: never falsify documents or encourage misrepresentation.

Accountability: correct errors and cooperate with regulators.

Professionalism: maintain competence and follow the law.

Regulator: Connecticut Department of Banking (Department of Financial Institutions) supervises mortgage licensees.

Licensing: mortgage lender, broker, and originator licenses are issued through NMLS.

Education: 20 hours pre-licensing and 8 hours annual continuing education.

Bonding: surety bond and net worth requirements apply.

Conduct: written agreements and fee disclosures; no charges for services not performed.

Examinations: the Commissioner may examine records and require reports.

Foreclosure: notice and mediation requirements apply.

Penalties: fines, restitution, suspension, revocation, and criminal referral.