RC_RC_LP_200.1 Introduction to Compliance in Loan Origination

It is important to understand lending and regulatory compliance laws, why they were established, and their impact on the mortgage industry. The mortgage industry is heavily regulated and compliance requirements affect how day-to-day business operations must be conducted. It is essential that all mortgage professionals understand the current landscape of regulatory compliance and how it affects the work they do.

Introduction to Compliance in Loan Origination begins with a history of regulatory compliance laws that regulate mortgage lending. The course then provides an overview of the following:

• Licensing laws that work to enhance consumer protection and reduce fraud by requiring states to establish minimum standards for companies and individuals in the mortgage lending business
• Disclosure laws that prohibit misleading or abusive advertising practices and require mortgage lenders to provide borrowers with specific, accurate, and timely information regarding the cost of credit so they can make informed decisions
• Fair lending or anti-discrimination laws that ensure fair and equitable treatment in house and real estate transactions
• Privacy and consumer identification laws that ensure borrowers have access to information used to make credit decisions on their behalf, protect private information, and reduce identity theft
• Predatory lending laws that protect borrowers from being taken advantage of through excessively high fees, misrepresentation, and other prohibited acts

The course closes with an examination of how these laws are enforced and the roles of the Dodd-Frank Act and the Consumer Financial Protection Bureau.

This is a single-family/residential course.