©Copyrighted. FORVIS, LLP. All rights reserved.
This publication or parts thereof may not be reproduced, shared or distributed in any form, stored in any retrieval system, or transmitted in any form by any means—electronic, mechanical, photocopy, recording, or otherwise—without prior written permission of the publisher. This electronic publication is intended for the individual purchaser’s use only and should not be shared or distributed by any means.
The federal lending compliance rules for mortgage loans have drastically changed within the past few years. No topic was left untouched – everything from application requirements to servicing and collection activities. With these revisions and clarifications – which continue consistently – the financial industry has and will continue to face many challenges.
This manual will cover disclosure requirements for mortgage loans secured by real estate, including the Integrated Mortgage Disclosure requirements (TRID rules), as well as review the other determinations that an institution is required to make for mortgage loans. The manual will bring together the requirements under various lending-related regulations necessary to ensure compliance for closed-end, consumer purpose real estate and dwelling-secured loans.
This manual discusses the disclosures on a timeline beginning when the customer first presents the loan request all the way through closing and after closing. The material is organized in a sequence similar to the way an institution processes a loan.
- Truth-in-Lending Act/Regulation Z
- RESPA/Regulation X
- Fair Credit Reporting Act/FACT Act – Regulation VM
- Equal Credit Opportunity Act/Regulation B
- Fair Housing Act
- Flood Disaster Protection Act
- Homeowners Protection Act
- Homeownership Counseling Notification Requirements
- Sale of Insurance
WHAT IS COVERED
- What is an Application, a Prequalification, and a Preapproval
- Lobby Notices
- Applicable Application Requirements, including Adjustable Rate Disclosures and Government Monitoring Information
- The Timing an Content of Early Disclosures, including the Loan Estimate and Closing Disclosure
- When to Collect Fees and Verifiable Information
- Disclosures During the Application Process and at Closing
- Other Determination that are Required – HPML; High Cost; Ability to Repay
- Basic Servicing Requirements.