Federal Mortgage-Related Laws
What this domain tests
This domain checks whether you recognize the federal statutes and implementing regulations that control residential origination: disclosure timing, fair lending, privacy, anti-money laundering, and settlement-service conduct.
Core rules to know by trigger
- TILA / Regulation Z: closed-end consumer credit secured by a dwelling. TRID requires the Loan Estimate and Closing Disclosure, accurate APR disclosure, and an ability-to-repay analysis. For TRID, an application exists once you have six pieces of information: borrower name, income, Social Security number, property address, estimated value, and loan amount.
- RESPA / Regulation X: Section 8 bars fees, kickbacks, or things of value for referrals of settlement-service business; Section 6 limits escrow and servicing transfers; Section 9 restricts seller-required title insurance.
- ECOA / Regulation B: adverse action notice generally within 30 days; prohibits discrimination on race, color, religion, national origin, sex, marital status, age, public assistance receipt, or good-faith exercise of rights.
- HMDA / Regulation C, the Fair Housing Act, the SAFE Act, HOEPA, and flood insurance rules complete the tested set.
Worked example
A complete application arrives Monday. You deliver the Loan Estimate Wednesday, inside the three-business-day window. Later the APR rises from 4.00% to 4.20% on a regular transaction. Because the increase exceeds 0.125%, a revised Closing Disclosure is required and a new three-business-day waiting period begins before consummation.
Traps that cost marks
A rate lock alone does not trigger TRID redisclosure. RESPA Section 8 is about referrals, not just fee amounts. ECOA adverse action timing runs from a completed application, not from an incomplete inquiry. Flood insurance notice and escrow requirements apply even when the lender does not otherwise escrow.