NMLS Laws and Regulations Latest Updated 2022 Rated A CFPB Consumer Financial Protection Bureau
What does the CFPB do? Regulates RESPA, TILA, ECOA, and HMDA
FTC Federal Trade Commission
What does the FTC do? Monitors Red Flag Rules
RESPA Real Estate Settlement Procedures Act
What does RESPA do...
NMLS Laws and Regulations Latest
Updated 2022 Rated A
CFPB ✔✔Consumer Financial Protection Bureau
What does the CFPB do? ✔✔Regulates RESPA, TILA, ECOA, and HMDA
FTC ✔✔Federal Trade Commission
What does the FTC do? ✔✔Monitors Red Flag Rules
RESPA ✔✔Real Estate Settlement Procedures Act
What does RESPA do? ✔✔•Protects homeowners of Single, 1-4 family dwellings, condos, &
homes manufactured on lot.
•Educates borrowers costs of loan
• Eliminates kickbacks and referral fees (section 8)
• Establishes rules for escrow
What Regulation is RESPA? ✔✔Reg X (X-ray of my RESPAtory system)
Who oversees RESPA? ✔✔(CFPB) Consumer Financial Protection Bureau
How long must records be kept under RESPA? ✔✔5 years
(RESPA has 5 letters= 5 letters of record keeping)
What are the penalties for violating RESPA? ✔✔$10k, 1 yr in prison OR both
(5 years x 2= $10,000 fine)
,TILA ✔✔Truth in Lending Act
What does TILA do? ✔✔• part of the Federal Consumer Protection Act and lays out disclosure
requirements, advertising
requirements as well as rights of rescission and penalties for violation.
• Requires creditors to disclose certain key terms and costs of the transaction
What Regulation is TILA? ✔✔Reg Z (Today I learned about Zebras. They cost 5k for the first 3
years of life)
Who oversees TILA? ✔✔•Consumer Financial Protection Bureau (CFPB), •Advertising: Federal
Trade Commission (FTC)
How long must records be kept under TILA? ✔✔3 Years
(Today I learned about Zebras. They cost 5k for the first 3 years of life)
What are the penalties for violating TILA? ✔✔$5k, 1 year Prison or both
$500k for class action suits or 1% if net worth of servicer, whichever is less
(Today I learned about Zebras. They cost $5k for the first 3 years of life)
ECOA ✔✔Equal Credit Opportunity Act
What does ECOA do? ✔✔• Keeps lenders form discriminating for age, race, religion, sex, marital
status, color, national origin, income from government, or exercising rights under CCPA
• Promotes the availability of credit to all applicants
• Requires notice of adverse action within 30 days
• Handicap is NOT protected by this law (See Fair Housing Lending Laws)
What regulation is ECOA? ✔✔Reg B (Be Equal)
,Who oversees ECOA? ✔✔Consumer Financial Protection Bureau
(CFPB)
How long must records be kept under the ECOA? ✔✔25 Months (25 letters in "Equal Credit
Opportunity Act)
What are the penalties for violating ECOA? ✔✔$10k individual fine
$500,000 Class Action Lawsuit
HMDA ✔✔Home Mortgage Disclosure Act
What does HMDA do? ✔✔• Provides Data to public, assists public officials, and identifies
evidence of descrimination
• Stops Redlining
(Government monitoring section 10 of 1003
What regulation is HMDA? ✔✔Reg C ("C" you at home)
Who oversees HMDA? ✔✔Consumer Financial Protection Bureau (CFPB)
Created by Federal Reserve Board (FRB)
How long must records be kept under HMDA? ✔✔3 years
Reported on LAR report and turned in every March 1st
(LAR has 3 letters= 3 years)
FCRA ✔✔Fair Credit Reporting Act
What regulation is FCRA? ✔✔Reg V ( "V"ery Fair Credit)
, What does the FCRA do? ✔✔• Mainly responsible for monitoring who has access to credit info
• Creditors must have permissible purpose
FACTA or FACT ACT ✔✔Fair and Accurate Credit Transaction Act
FACTA is an amendment to what Law? ✔✔Fair Credit Reporting Act (FCRA)
What does FACTA do? ✔✔• Requires businesses to take appropriate measures to safeguard from
theft in the disposal of consumer reports
• Curb identity theft and improve customer dispute resolution
• Requires the disclosures for credit score upfront
• Requires companies to inform borrowers 30 days prior to posting negative info to credit report
TCPA ✔✔Telephone Consumer Protection Act
Who oversees TCPA? ✔✔Federal Trade Commission (FTC)
What does TCPA do? ✔✔• Prevents telemarketers from harassing customers
• DO NOT CALL registry-Good for forever unless number is disconnected or transferred to new
customer
• Lenders 2 exceptions: Call 90 days after an app is taken or 18 months after a closed transaction
How long must records be kept under TCPA? ✔✔2 years
(only "2" exceptions for lenders)
What are the penalties for violating TCPA? ✔✔$16k ("16" calls is harassment)
CIP ✔✔Customer Identification Program
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