ID MLO cheat sheet

RESPA Section 8 prohibits giving or accepting anything of value in exchange for referrals of settlement service business; Section 8(c) safe harbor covers bona fide payments for goods or services actually performed at reasonable value.

RESPA requires a special information booklet and Loan Estimate within 3 business days of application, and the Closing Disclosure at least 3 business days before consummation; a valid changed circumstance permits revised disclosures.

TILA/Regulation Z ability-to-repay requires verification of eight underwriting factors including income, employment, assets, monthly payment, loan term, and simultaneous loans; qualified mortgages receive safe harbor or rebuttable presumption.

TRID tolerances: 0% for lender fees and transfer taxes; 10% cumulative for recording fees and third-party services where the consumer may not shop; unlimited for services where the consumer shops and selects the provider.

ECOA/Regulation B prohibits discrimination on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, or good-faith exercise of rights; adverse action notice generally within 30 days of a completed application.

HMDA/Regulation C requires collection and reporting of applicant demographics, loan purpose, amount, rate spread, and action taken for covered loans; the Closing Disclosure records the ethnicity, race, and sex data collected.

SAFE Act requires mortgage loan originators to hold a valid unique identifier, be registered in NMLS, and include the identifier on loan documents; federal registration applies to bank MLOs, state licensing to non-bank MLOs.

Flood insurance under the Biggert-Waters Act and Regulation requires determination and notice, and escrow of premiums for loans on property in a special flood hazard area; mandatory purchase applies when the loan is federally regulated.

HOEPA/Regulation Z high-cost mortgage triggers include points and fees exceeding 5% of the loan amount (with adjusted thresholds for smaller loans), a prepayment penalty beyond statutory limits, or an APR exceeding the average prime offer rate by specified margins.

The six pieces of information constituting an application under Regulation Z are consumer name, income, social security number, property address, estimated value, and loan amount; receipt of all six starts the 3-business-day disclosure clock.

Loan Estimate must be delivered or placed in the mail no later than the third business day after application; the consumer may not be charged fees other than a bona fide credit report fee before receipt.

Processing includes ordering title, appraisal, flood determination, verification of employment and deposits, and title insurance commitment; appraisal must be provided to the applicant promptly and no later than 3 business days before consummation.

Underwriting evaluates capacity, credit, capital, and collateral; the ATR rule requires documented debt-to-income and residual income analysis, and Appendix Q or agency guides govern income calculation for QM loans.

Closing: the Closing Disclosure must be received by the consumer at least 3 business days before consummation; the consumer may waive the waiting period only for a bona fide personal financial emergency with a dated written waiver.

Right of rescission under TILA applies to refinances and home equity loans on a principal dwelling, giving the consumer 3 business days after consummation or delivery of disclosures to cancel; purchase-money loans are exempt.

Servicing under Regulation X requires a periodic statement for closed-end loans, timely crediting of payments as of the date of receipt, and a designated address for qualified written requests.

Loss mitigation: a complete loss mitigation application received more than 37 days before a foreclosure sale triggers evaluation within 30 days and a dual-tracking prohibition on foreclosure referral.

Escrow account administration under Regulation X limits cushion to one-sixth of annual disbursements and requires an annual escrow account statement; RESPA Section 6 governs servicer responses to borrower inquiries.

The Idaho Residential Mortgage Practices Act (Title 26, Chapter 31, Idaho Code) licenses mortgage brokers, mortgage lenders, and mortgage loan originators through the Idaho Department of Finance, with licensing coordinated through NMLS.

Idaho MLO license requirements include pre-licensure education, a passing SAFE test score, a criminal background check, and sponsorship by a licensed mortgage broker or lender; licensees must complete annual continuing education.

Idaho requires a fidelity bond or net worth requirement for licensed mortgage brokers and lenders as set by the Director, and licensees must maintain a principal place of business and report changes to the Department.

Idaho's Residential Mortgage Practices Act prohibits unlicensed activity, requires written disclosures of agency relationships and fees, and restricts dual compensation; violations may result in license suspension, revocation, or civil penalties.

Idaho mortgage loan originators must keep records for at least three years after the loan is closed or the loan application is denied, and the Director may examine books and records.

Idaho's foreclosure statute (Idaho Code Title 45) permits nonjudicial foreclosure by advertisement and sale after a notice of default period; Idaho is a deed-of-trust state, and the trustee conducts the sale.

Idaho requires notice of default to be recorded and mailed, with a minimum waiting period before the trustee's sale; the borrower may cure the default by paying arrears plus costs before the sale.

Idaho usury limits are set by statute with exceptions for licensed lenders and federally related mortgage loans; licensed mortgage lenders may charge permitted interest, points, and fees disclosed under state and federal law.

Idaho prohibits unfair or deceptive acts or practices in mortgage lending under the Idaho Consumer Protection Act (Title 48, Chapter 6), enforced by the Attorney General in addition to Department of Finance authority.

Occupational fraud triangle: opportunity, pressure (incentive), and rationalization; controls target opportunity through segregation of duties, dual approval, and audit trails.

Mortgage fraud categories: fraud for property (occupancy or income misrepresentation by a borrower) and fraud for profit (industry insiders using straw buyers, inflated appraisals, or flipped properties).

Red flags include income inconsistent with occupation, recently opened credit accounts, deposit source inconsistencies, employment verification returned to a non-independent contact, and appraisal values exceeding neighborhood comparables.

Suspicious Activity Report (SAR) filing is required by financial institutions for suspected fraud or money laundering; the SAR is confidential, and tipping off the subject is prohibited.

Fair lending: disparate treatment is intentional differential treatment; disparate impact is a neutral policy with disproportionate adverse effect. ECOA and the Fair Housing Act both prohibit discrimination in mortgage lending.

UDAAP under Dodd-Frank Title X prohibits unfair, deceptive, or abusive acts or practices; deceptive requires a material misrepresentation likely to mislead a reasonable consumer.

Confidentiality: nonpublic personal information is protected under the Gramm-Leach-Bliley Act; privacy notice and opt-out rights apply, and safeguarding rules require a written information security program.

Conflict of interest controls prohibit undisclosed referral fees, affiliated business arrangements without proper disclosure, and steering borrowers to products based on compensation rather than suitability.

Anti-money laundering under the Bank Secrecy Act requires customer identification programs, currency transaction reports above $10,000, and enhanced due diligence for high-risk customers.