Federal Mortgage Laws and Regulations
Domain 1 tests the federal statutes an Oklahoma MLO applies on every file: disclosure timing, anti-kickback rules, fair lending, and licensing.
RESPA / Regulation X
Section 8 bars any fee, thing of value, or split of a charge for referrals of settlement-service business, and it bans fee-splitting for services not actually performed. No proof of consumer harm is required. Section 9 bars requiring a buyer to use a particular title company. Section 10 caps escrow cushions at one-sixth of annual disbursements. A servicing disclosure statement goes out within three business days of application, and a transfer of servicing requires notice at least 15 days before the effective date.
TILA / Regulation Z
Deliver the Loan Estimate within three business days of application and the Closing Disclosure at least three business days before consummation. The finance charge and APR drive three tolerance buckets: zero tolerance (creditor fees, transfer taxes, affiliate services the consumer cannot shop for), 10 percent cumulative, and unlimited. A valid changed circumstance resets the baseline only if a revised disclosure is issued promptly. Right of rescission is three business days for a refinance or HELOC secured by a principal dwelling.
ECOA / Reg B and HMDA
Adverse action notice within 30 days; copies of appraisals promptly. Prohibited bases include race, color, religion, national origin, sex, marital status, age, and receipt of public assistance income. HMDA requires collecting and reporting government monitoring information.
SAFE Act
MLOs register in NMLS with fingerprints, credit report, testing, 20 hours of pre-licensing education, and 8 hours of annual continuing education.
Example: An LO refers a borrower to an affiliated title company and receives a $150 "marketing fee" not tied to work performed. Even though the borrower pays nothing extra, the payment is a Section 8 referral fee and a violation.
Traps: treating the 10 percent tolerance as a cap on all fees; assuming no revised Loan Estimate is ever needed after intent to proceed; confusing rescission with the three-day CD waiting period - both can apply to a refinance, but they are separate clocks.