Mortgage Lending Compliance: Four-Part Series

WHAT?

The process of evaluating, originating and servicing mortgage loans contains numerous requirements that come from several regulations. Those regulations cover various aspects of the transaction – from product planning through servicing. Failure to comply with each and every requirement can result in liability in one form or another. Many regulations have been impacted by updated guidance.

This program focuses on origination of closed-end loans secured by real property. It does not cover open-end credit or credit that is unsecured or secured by collateral other than real estate or a dwelling.

WHY?

This four-part program provides a very comprehensive review of the mortgage lending process from initial product development to origination to end of loan life servicing. The program breaks down the lending process into the appropriate phases. It explores which regulations apply to each phase and which actions are required by those regulations. Participants receive a detailed manual  that serves as a handbook long after the program is completed.

PROGRAM CONTENT

The laws and regulations covered in the program include:

• Equal Credit Opportunity Act/Regulation B;
• Fair Housing Act/Agency regulations;
• Home Mortgage Disclosure Act/Regulation C;
• Truth in Lending Act/Regulation Z;
• Real Estate Settlement Procedures Act/Regulation X;
• Flood Disaster Protection Act/Agency Regulations;
• Fair Credit Reporting Act/Regulations V;
• Safe Act/Regulation G;
• Homeowner Protection Act; and
• Unfair, Deceptive or Abusive Acts or Practices.

The phases of the mortgage lending process covered in the program include:

Session 1 – October 8, 2024

• Strategic considerations
  • Regulations or guidance (Each rule – coverage/exemptions)
  • Emerging issues
  • Processes (developing procedures and operating systems, training staff, monitoring activities, and setting controls)
  • Use and role of third parties
  • Policies and Procedures
    • TIL (1026.36(j))
    • RESPA – servicing (1024.38, .39, .40, .41))
• Product Design
  • Applicability of laws and regulations
  • Types of fees assessed
    • Finance charges (1026.4)
  • Prohibition on fees
    • TRID – Fee for preparing and delivery CD(1026.19(f)(5))
    • RESPA – Fee for escrow and TIL (1024.12)
  • Delivery systems
  • Loan originator qualifications
    • SAFE Act
    • TIL (1026.36(f))
  • Loan Originator Training (1026.36(f)(3)(iii))
  • Loan Origination Compensation rules (1026.36)
  • Prohibition on Financing Credit Insurance (1026.36)
  • e-Sign requirements
• Pre-Application
  • Marketing
    • Applicability of laws and regulations
    • TIL advertising
    • Use of APR in Oral Disclosures (1026.26)
    • UDAAP
    • FTC Endorsement Guidelines
  • Steering Risk
  • Discrimination Issues

Session 2 – October 10, 2024

• Application
  • What is an application
    • How the term differs from one regulation to another
    • Prequalifications and preapprovals;
  • Taking Applications
    • Written vs. Oral Applications
    • New URLA
    • Obtaining credit reports
    • HUD Guidance on LEP
    • Rules Concerning Requests for Information
    • Form Issues
    • Collecting Government Monitoring Information
      • Regulation B
      • Part 27
      • HMDA
    • Discrimination Issues
  • Prohibition on Steering (1026.36)
  • Adverse Action
  • Restrictions
    • TRID Fee Restrictions
    • TRID Verifying Information
    • Prohibition on Kickbacks and Unearned Fees (1024.14())
  • Delivering Disclosures
    • TRID Written List of Providers
    • TRID Toolkit
    • TRID Loan Estimates (Initial and Revised)
    • Affiliated Business Disclosure
    • List of Homeownership Counseling Organizations
• Underwriting
  • Rules Concerning Evaluation of Information
  • Evaluating Temporary Leave Income
  • Ability to Repay (1026.43)
  • Credit Score Disclosures
  • Flood Determination
    • Standard Flood Hazard Determination form
    • Determination fees

Session 3 – October 15, 2024

• Pricing
  • Risk-Based pricing
  • Limitation on Rates (1026.30)
• Origination (Up to and including origination)
  • Amount of flood insurance, if any;
  • Escrow Requirements
    • TIL HPML (1026.35)
    • RESPA
      • Initial Escrow disclosure
    • Flood Insurance
  • Valuation Independence (1026.42)
  • Delivering Disclosures
    • TRID Closing Disclosures (Initial and Revised)
      • Tolerance Check
    • Special flood Hazard Determination Form
    • Flood – Notice of Servicer’s Identity
      • At origination
      • Transfer of servicing
    • Right of Rescission
    • Section 32 Disclosure
    • Appraisals
      • Regulation B
        • Notice
        • Copy of the Appraisal
      • Regulation Z – HPML (1026.35)
        • Notice
        • Copy of the Appraisal
    • NMSLR ID Number (1026.36(g))
  • Restrictions
    • Section 32 (1026.32)
    • RESPA Return on Ownership Interest (1024.15(b)(3))
  • Rules Concerning Extensions of Credit (Spousal signature rules)

Session 4 – October 17, 2024

• Servicing
  • Furnishing Credit Information (ECOA & FCRA)
    • FCRA Accuracy and Integrity
    • FCRA Notice of Negative Information
  • Reporting HMDA Data
  • Force-Placing Insurance
    • RESPA (1024.37))
    • Flood Insurance
  • Payment processing (1026.36(c)(1))
  • Pyramiding of late charges (1026.36(c)(2)
  • Payoff Statements (1026.36(c)(3))
  • Statements (1026.41)
  • Escrows
    • RESPA – Timely Escrow Payments and Treatment of Escrow account Balances (1024.34(a))
    • RESPA – Annual Escrow Disclosures
    • TIL – Escrow Cancellation Notice
  • Transfer of Servicing
    • RESPA (1024.33(b)(1))
    • TIL (1026.39)
    • Flood
  • RESPA Error Resolution Procedures (1024.35)
  • RESPA Requests for Information (1024.36)
  • Loss Mitigation
  • Foreclosure
  • Termination

WHO?

The program is designed for loan officers, compliance officers, loan support staff, marketing staff, auditors, and any others with responsibilities related to and aspect of mortgage loans.

Reminder: The registration fee includes live attendance AND playback recordings of each session in the series, which are available once the session concludes.

Mortgage Lending Compliance –  (Four-Part Series) has been submitted to ABA Professional Certifications for CE credit review and is pending approval. Once we receive notification of the credit approval, we will notify attendees.