Annual Percentage Rate-

Cost of borrowing money from the lender, shown as a percentage. Included interest rate as well as all other fees that are paid over the life of the loan.

Ability to Repay Rule-

The reasonable and good faith determination most mortgage lenders are required to make that you are able to pay back the loan using a borrowers incomes, assets, employment, credit history, and monthly expenses. 

Bank Secrecy Act- 

Financial institutions are required tp assist U.S. government agencies in detecting and preventing money laundering, such as keeping records of cash purchases or reporting suspicious activity that might signal criminal activity.

Consumer Financial Protection Bureau-

purpose s to educate consumers , and protect them from unfair, deceptive, or abusive practices as well as taking action against companies that break the law.

Consumer Handbook on Adjustable Rate Mortgages-

Provides information to consumers about the features and risks of adjustable rate mortgage loans. Under Reg Z lenders must provide CHARM to borrowers of ARM loans.

Consumer Identification Program-

is a United Sates requirement, where financial institutions need to verify the identity of individuals wishing to conduct financial transactions with them and is a provision of the USA Patriot Act

Debt to Income Ratio-

One way lenders measure ability to repay the loan is to divide income by monthly expenses

Equal Credit Opportunity Act-

Cannot deny credit based on:

Race, Religion, Color, National Origin, Age, Sex, Marital Status, or receipt of income from public assistance programs.

Fair and Accurate Credit Transactions Act-

Primary focus is the enhance consumer protection. i.e. credit reporting, identity theft, red flag detection

Fair Credit Reporting Act- 

Protects consumer against unfair, inaccurate credit reporting and gives the right for consumer to examine their own credit history. Bureaus are required to investigate any errors on reports and remove inaccuracies within 30 days.

Fraud Enforcement and Recovery Act-

Facilitates prosecution of those committing mortgage fraud. 

Federal Financial Institutions Examination Council-

Purpose is to create uniform reporting systems. 

Fair Housing Act-

It is Illegal to discriminate in the sale or rental of housing, including against individuals seeking a mortgage or housing assistance or in the other housing-related activities. Prohibits discrimination because of race, color, religion, sex, familial status and disability.

Federal Housing Finance Agency- 

is the conservator for Fannie Mae and Freddie Mac, also responsible for daily operations.

Federal Home Loan Mortgage Company Corp-

AKA Freddie Mac

Chartered by Congress to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle-income Americans.

Financial Institutions Regulartory & Interest Rate Control Act-

1987. Established FFIEC.

Federal National Mortgage Association-

AKA Fannie Mae. Makes mortgages available to low- and moderate-income borrowers. It does not provide loans but backs or guarantees them in the secondary mortgage market. 

Federal Trade Commission-

Enforces laws that protect consumers from deceptive mortgage practices, such as enforcing the Gramm-Leach-Bliley Act

Financial Crimes Enforcement Act -

Uses counter-monty laundering laws such as the Bank Secrecy Act(BSA) to require reporting and recordkeeping by banks and other financial institutions

The total amount of interest and loan charges paid over the entire life of the loan. Includes origination fees, discount points, MIP/PMI, and applicable charges.

Good Faith Estimate-

Used in Reverse mortgages, it is the estimated costs for the loan. 

Gramm-Leach-Bliley Act-

Known as the Privacy Act - Enacted in 1999 Requires Financial Institutions to insure the security & confidentiality of consumer records.

Ginnie Mae-

Government National Mortgage association is a federal corporation that guarantees principal and interest payments on mortgage-backed securities issues by approves lenders. Part of the U.S. Department of Housing and Urban Development.

Housing and Community Facilities Program-

Part of USDA rural development provides loans & grants for housing and community facilities.

Home Equity Line of Credit-

Line of credit secured by principal dwelling. Creates revolving credit line.

Housing Economic Recovery Act-

(Title V - S.A.F.E. Act is from this)

Addresses the subprime mortgage crisis. It was intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and Injecting capital into the two large U.S. suppliers of mortgage funding.

Home Mortgage Disclosure Act-

1975 AKA Regulation C

Required fiancial institutions to annually disclose data about home purchases, pre-approvals, home improvement & refinancing applications for 1-4 units & multifamily dwellings.

Home Ownership and Equity Protection Act-

Enacted in 1994 as an amendment to TILA to address abusive practices in refinance and closed-end home equity loans with high interest rates or high fees.

Homeowners Protection Act-

Enforced by FTC AKA - PMI cancellation act. Designed to reduce unnecessary payment of private mortgage insurance by homeowners.

Higher Priced Mortgage Loans-

Regulation Z defines higher-priced mortgage loan as a consumer credit transaction secured by the consumer's principal dwelling with an APR that exceeds the average prime offer rate for a comparable transaction.

Loan to Value-

Ratio that lenders use to determine how much risk they're taking on with a secured loan. 

Mortgage Assistance Relief Service-

Seeks to protect homeowners from mortgage relief scams by imposing specific requirements and prohibitions on industry professionals in order to regulate their business practices. 

Mortgage Disclosure Improvement Act-

2008 Amendment of Regulation Z TILA. Adds disclosure requirements for non-purchase money transactions.

REfI's & loans secured by dwelling.

*HELOC's NOT COVERED

National Credit Union Administration

Non-Public Personal Information-

Personally identifiable financial information provided by a consumer to a financial institution.

Pre-Paid Finance Charge-

cost associated with loan agreement, can include such things as admin fees, origination fees, and loan insurance.

Principal, Interest, Taxes, and Insurance-

Mortgage lenders use PITI to calculate the monthly housing expense.

Private Mortgage Insurance-

Usually required when its a conventional loan and a down payment of less than 20% of the value of the home

Qualified Mortgage-

A mortgage that meets certain requirements for lender protection and secondary market trading under Dodd-Frank and follows the ATR rule.

Part of ECOA-

Prevents applicants from being discriminated against in any aspect of a credit transaction. Outlines rules that lenders must adhere to when obtaining and processing credit information.

HMDA (Home Mortgage Disclosure Act)

AKA Flood Disaster Protection Act

Regulations implementing the TILA of 1968.

Safe And Fair Enforcement (licensing) Act-

Enforced by the CFPB AKA "Title V"

Federal response to the mortgage meltdown of 2008. Establishes minimum standards for licensing and regulating mortgage loan originations. 

Limits the amount of money a lender may require the borrower to hold in an escrow account for payment of taxes, hazard insurance, and other charges related to the property.

Prohibits kickbacks for business referrals related to or part of settlement services involving loans.

Prohibits seller from forcing a buyer to purchase title insurance from a particular title insurance company as a condition of sale

Lending Institution

Receipt of mortgage payments from a borrower

Truth in Lending Act-

Created in 1968, governed by the CFPB

TILA - RESPA Integrated Disclosure-

AKA "Know Before You Owe" mortgage disclosure rule, used to close loopholes that unscrupulous lenders have used in the past.

Residential Loan Application