ACTS & REGULATIONS. ECOA REG B Equal Credit Opportunity Act

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1 ACTS & REGULATIONS ACT ECOA REG B Equal Credit Opportunity Act Issued by the Board of Governors of the Federal Reserve System HMDA REG C Home Mortgage Disclosure Act Implemented by the Federal Reserve Board s Reg C FCRA REG V Fair Credit Reporting Act Enforced by the Federal Trade Commission TILA REG Z Truth in Lending Act Overseen by the Board of Governors of the Federal Reserve System RESPA REG X Real Estate Settlement Procedures Act Overseen by the U.S. Department of Housing and Urban Development HOEPA Home Ownership and Equity Protection Act Enforced by the Commission of the FTC and by the states through their Attorney General DIDMCA Depository Institutions Deregulation and Monetary Control Act Enacted by the Senate and House of Representatives of the USA DESCRIPTION Prohibits discrimination based on race/color, religion, national origin, sex, marital status, age, or public assistance Helps government spot redlining and predatory lending Promotes accuracy and ensures privacy in consumer reports Regulates disclosures of finance charges, shows estimated total costs of borrowing and the expected payment amounts over life of loan. Ensures creditors will follow same guidelines and use the same format. Allows consumers to cancel a transaction Provide borrower with info about closing costs and eliminate kickbacks and referral fees (section 8). Pertains to 1-4 properties & includes purchases, assumptions, refinances property improvement loans, equity lines of credit and reverse mtgs. An amendment to the TILA. A federal law concerning high-cost home equity loans that requires certain disclosures and prohibits certain predatory lending practices. Gave the Federal Reserve greater control over non-member banks. Forced all banks to abide by Fed s rules, allowed banks to merge, removed the power of the Federal Reserve Board of Governor s under the Glass-Steagall Act to set interest rates of

2 DIDMCA (continued) AMPTA Alternative Mortgage Transaction Parity Act Enacted by Congress in 1982 SAFE ACT Secure and Fair Enforcement for Mortgage Licensing Act Enacted by the House and Economic Recovery Act (HERA) Enforced by state regulators PRIVACY PROTECTION/DO NOT CALL REGISTRY Managed by the FTC and enforced by the FTC, FCC and state law officials FACT ACT or FACTA Fair and Accurate Transaction Act of 2003 Enforced by the FTC savings accounts, allowed credit unions and S&Ls to offer checkable deposits and allowed institutions to charge any interest rates they choose. An act that overrode many state laws that prevented banks from using mortgages other than conventional fixed rate mortgages A federal law enacted in 2008 to implement a national system of licensing and registration for all loan originators. Designed to prevent abusive practices during loan origination by: Requiring all loan originators to be either state-licensed or federally registered Requiring all states to comply with standard reporting requirements and use uniform license application forms for state-licensed loan originators Increasing the tracking and reporting of loan originator information across state lines Imposing fiduciary duties on all loan originators Enhancing consumer protection and anti-fraud measures Gives consumers a choice about whether to receive telemarketing calls at home. Registration for home or mobile phones is free. It is illegal form most telemarketers or sellers to call a number listed on the national do not call registry. Amendment to the Fair Credit Reporting Act. Allows consumers to request and obtain a free credit report every 12 months from each credit reporting agency. This allows consumers to discover and correct errors on their report.

3 RED FLAG RULES Enforced by the FTC, the Federal Bank Regulatory Agencies, and the National Credit Union Administration (NCUA) GLB Gramm-Leach-Bliley Act Enforced by the Federal Functional Regulators, State Insurance Authorities and the FTC Consumer Credit Protection Act Enforced by the Board of Governors of The Federal Reserve System FEDERAL TRUTH IN ADVERTISING Enforced by the FTC Requires credit reporting agencies to create regulation requiring identity theft prevention. This act made it legal for a holding company to have a bank, a securities firm, and an insurance company as subsidiaries. A holding company is basically a corporate entity created for the purpose of owning other companies The Consumer Credit Protection Act is federal legislation that limits wage garnishments and mandates disclosure of certain terms with respect to credit offerings. The Act was passed in 1968 and is best known for containing the Truth in Lending Act (TILA), which requires creditors to provide consumers with understandable, comparable terms for credit offers. Advertising must be truthful and non-deceptive Advertisers must have evidence to back up their claims Advertisements cannot be unfair TRUTH IN LENDINC ACT ADVERTISING RULES Overseen by the Board of Governors of the Federal Reserve System FYI: Truth in Lending Act has new rules regarding advertising, mandatory 10/01/08: Advertising a fixed rate when this rate is fixed for a limited time period and not the loans full term; Using a comparison model demonstrating a hypothetical consumer s current rate or payment obligations to the advertised product, unless the advertisement states the rates or payments over the life of the loan; Advertisements that characterize the products offered as government loan programs, government-supported or sponsored loans unless it is a

4 TRUTH IN LENDING ACT ADVERTISING RULES (continued) government type loan such as FHA or VA or similar loan; Advertisement such as flyers, solicitation letters, etc., that display the name of the consumer s current lender, unless it is prominently disclosed on the advertisement that the mortgage lender is not affiliated with the consumer s current lender; Advertisements that make claims of debt elimination if the advertised product will only be replacing one debt obligation with another; Advertisements that falsely create the impression that the mortgage broker or lender has a counselor relationship with the consumer; Foreign-language advertisements in which certain information such as a low introductory teaser rate, is provided in a foreign language, while required disclosures are provided only in English in the same advertisement. FAIR HOUSING ACT Administered by HUD FLOOD DISASTER PROTECTION ACT OF 1973 Overseen by the Director of the Federal Emergency Management Agency Prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). To expand the national flood insurance program by substantially increasing limits of coverage and total amount of insurance authorized to be outstanding and by requiring known flood-prone communities to participate in the program, and for other purposes. Protects property owners and the federal government's financial burden from flood losses, by requiring lenders to disclose to the applicant the necessary information

5 FLOOD DISASTER PROTECTION ACT OF 1973 (continued) pertaining to the National Flood Insurance Program.