Federal Mortgage-Related Laws
What this domain tests
Federal mortgage-related laws test how origination conduct is regulated: disclosure timing and accuracy, fair lending, privacy, anti-money laundering, and prohibited practices. Expect scenario questions that turn on definitions and deadlines rather than slogans.
Core rules
- TILA/Reg Z and TRID: Give the Loan Estimate (LE) within three business days after application; give the Closing Disclosure (CD) at least three business days before consummation. A revised LE may be needed after a changed circumstance; tolerances are zero, 10% cumulative, or unlimited.
- RESPA/Reg X: Section 8 prohibits fees for referrals of settlement services; Section 6 limits escrow account payments and requires annual escrow statements.
- ECOA/Reg B: Notify the applicant of action taken within 30 days of a completed application; give adverse-action reasons.
- HMDA/Reg C: Collect and report covered loan data; it is not a borrower disclosure.
- SAFE Act: MLOs must be licensed or registered and use their unique identifier.
- Fair Housing, FCRA, GLBA, BSA/AML, UDAAP: no discriminatory terms, permissible-purpose credit reports, privacy safeguards, SARs, and no unfair, deceptive, or abusive acts.
Worked example
A lender receives a completed application Tuesday. It may deliver or mail the LE by Friday. If it mails the LE Friday, the consumer is treated as receiving it three business days later for waiting-period purposes, so closing cannot be set as if receipt occurred Friday. The CD waiting period runs separately.
Traps
Do not confuse the general 'business day' (bank open) with the precise 'business day' for waiting periods (all days except Sundays and legal holidays). A changed circumstance permits revision, not automatic tolerance cure. Collecting fees before the LE is allowed only for a credit report, and only if bona fide and reasonable. Mailing is not receipt for the three-day waiting periods.