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Truth in Lending Act
TILA – Regulation Z
- TIL disclosure within 3 business days after receipt of written application; no later than 7th business day before
- transaction is consummated
- Corrected disclosures at least 3 business days before consummation if the APR varies by more than 1/8 of 1%
- Loan can NOT be consummated until 7 business days from initial TIL and 3 business days from redisclosure.
- (Note: The 3 days is WITHIN the 7; it does NOT total up to 10 business days).
- Consumer with an emergency may waive 7 or 3 business day waiting periods.
- Notice of rescission to lender by any owner by midnight of 3rd business day following consummation, delivery of
- TIL disclosure, or delivery of notice of right to rescind.
- Lender must return any money or property received within 20 days after receiving rescission notice
- Right to rescind extended to 3 years if creditor fails to deliver required notice and disclosures, or if creditor’s
- disclosure of finance charge is understated by more than $100.
- A creditor must retain evidence of compliance with Regulation Z for 2 years after the date of disclosures
Real Estate Settlement
RESPA – Regulation X
- Disclosures required at time of loan application / within 3 business days of receiving a loan application (mortgage
- servicing disclosure statement, estimate of all settlement services binding for at least 10 business days from when
- GFE is provided
- Revised GFE must be provided within 3 business days of receiving info to establish changed circumstances
- A referring party must give AfBA disclosure to borrower at or prior to the time of a referral.
- Borrower has right to inspect HUD-1 one business day before settlement
- Fully completed HUD-1 must be delivered or mailed to borrower at or before settlement
- Borrower must be given initial escrow account statement showing following year’s deposits and disbursements
- at settlement, or within 45 days
- Borrower must receive annual escrow statement from servicer within 30 calendar days of end of escrow year
- Borrower must receive servicing transfer statement at least 15 days before effective date of loan transfer
- Borrower cannot be penalized for making a timely payment to prior servicer within 60 days of loan transfer
- Records must be retained for 3 years for revised GFE; for 5 years for HUD-1s, escrow accounts, and AfBAs
Homeownership and Equity
- Disclosures to borrower three business days prior to settlement of Section 32 loan, in addition to others required
- under TILA
- Notice must show that loan need not be completed and home can be lost.
Homeowners Protection Act
Lender must disclose the right to request cancellation of PMI at loan closing
Equal Credit Opportunity Act
ECOA – Regulation B
- Notification of incomplete application within 30 days of application.
- Notice of action taken = whether application accepted, countered, or rejected, and of right to copy of appraisal
- within 30 days of filing application.
- Lender must provide copy of appraisal within 30 days of receipt of a written request, if the request is received
- within 90 days of the notice of action (30/90/30)
- Retain original or copy of application for 25 months after notifying applicant of action taken or of incompleteness.
Fair Credit Reporting Act
- Free copy of credit bureau report if requested within 60 days of adverse action.
- CRA can report negative information up to 7 years; Bankruptcy information may be reported for 10 years
- Furnishers of information have 30 days to investigate dispute.
Fair and Accurate Transaction
- Free copy of credit report from each CRA annually
- Fraud alert – 90 days
- Extended fraud alert – 7 years
Financial Modernization Act
GLBA – Regulation P
- Privacy Notice not later than when customer relationship established
- Opt-out Notice – prior to sharing non-public information
- Annual notices to customers
Home Mortgage Disclosure
HMDA – Regulation C
Report information to enable monitoring of redlining and other ECOA violations
- Established business relationship = purchase of seller’s good/services within last 18 months OR inquiry within
- last 3 months
- Remain on Do-Not-Call (DNC) list forever