Federal Mortgage-Related Laws
What this domain tests
Federal Mortgage-Related Laws is the heaviest-weighted national topic. Items almost always ask you to attach one specific rule to one specific statute: which disclosure, which deadline, which threshold, which prohibition. Memorize the statute-to-rule map before memorizing details.
Keep the statutes separate
- TILA / Regulation Z - APR and finance charge disclosure; the 3-business-day right of rescission on refinances and HELOCs secured by a principal dwelling; ability-to-repay and qualified mortgage standards; HOEPA high-cost triggers; the loan originator compensation rule (no compensation keyed to loan terms, no payment from both borrower and lender on the same transaction).
- RESPA / Regulation X - Loan Estimate within 3 business days of application; Closing Disclosure received at least 3 business days before consummation; Section 8 ban on splitting fees for referrals; escrow account limits; servicing transfer notice; Qualified Written Requests.
- ECOA / Regulation B - adverse action notice generally within 30 days; prohibited bases; copy of the appraisal.
- HMDA / Regulation C - coverage thresholds and data reporting.
- Fair Housing Act, Flood Disaster Protection Act, Homeowners Protection Act (PMI cancellation at 80% on request, automatic termination at 78%), GLBA, FCRA, SAFE Act.
Worked example
A borrower applies Monday to refinance her primary residence. The Loan Estimate goes out Tuesday; the Closing Disclosure goes out Thursday; consummation is the following Tuesday. The Loan Estimate is timely. The Closing Disclosure is not automatically safe: it must be received at least 3 business days before consummation, and that clock restarts if the APR moves beyond tolerance. Then rescission runs 3 business days after consummation, so the loan is not truly final until that window closes.
Traps that cost marks
- "Business day" has two Regulation Z meanings: the precise definition (all calendar days except Sundays and federal holidays) governs the Closing Disclosure and rescission; the general definition governs the Loan Estimate.
- Rescission never applies to a purchase-money loan or to an investment property.
- Using GFE/HUD-1 timing - replaced by the TRID disclosures on October 3, 2015.
- Treating a signed disclosure as a cure for a prohibited practice such as a referral fee split.