RC_RC_GO_306.1 UDAP, UDAAP, and the MAP Rule Compliance Basics

There are many federal and state statutes and implementing regulations designed to protect consumers in many types of financial transactions. Some of them, such as the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), for example, restrict financial institutions and other stakeholders from performing specific activities that may trick, deceive, or otherwise harm consumers.

Other regulations provide more general protections for consumers against harm. The Federal Trade Commission Act was enacted in 1914. An important amendment took place in 1938 where the FTC gained authority to enforce against unfair or deceptive acts or practices (UDAPs). With the passage of the Dodd-Frank Act in 2010, Congress provided the Consumer Financial Protection Bureau (CFPB) with similar authority to protect consumers from unfair, deceptive or abusive acts and practices (UDAAPs). The FTC's UDAP rules, along with the CFPB's UDAAP rules, exist to protect consumers from acts and practices that harm consumers, whether in addition to violations of specific statutory provisions such as RESPA and TILA or in their absence. In addition, both the FTC and the CFPB share authority over the Mortgage Acts and Practices (MAP) rule, which defines and governs deceptive advertising in the mortgage industry.

Violations of UDAP, UDAAP, or MAP provisions may have severe financial, reputational, and regulatory impacts on these financial institutions. This course is designed to introduce these rules and their implications for lenders.

UDAP, UDAAP, and the MAP Rule Compliance Basics begins with an introduction to UDAP, UDAAP, and the MAP Rule. It continues with an explanation of unfair, deceptive, and abusive practices and the scope of the MAP Rule, along with its prohibited representations and record-keeping requirements. Additionally, this course covers how UDAP and UDAAP interplay with state and federal laws, and it provides guidance for staying compliant with the rules.

This is a single-family/residential course.

• Introducing UDAP, UDAAP, and the MAP Rule
• Unfair, Deceptive, and Abusive Acts and Practices
• MAP Rule
• Federal and State Law Interaction
• UDAAP and MAP Rule Compliance

Seat time approximately 2 hours.

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