RC_RC_LP_200.3 Disclosure Laws in Loan Origination

Disclosure laws are designed to require mortgage lenders to provide borrowers with specific, accurate, and timely information regarding the cost involved in obtaining a mortgage loan so that borrowers can make informed decisions. They also inform borrowers about their rights as consumers in the mortgage lending process and safeguard borrowers against mortgage lenders who participate in misleading or abusive practices.

In the Disclosure Laws in Loan Origination course, we will take an in-depth look at the laws that most significantly affect disclosure requirements in the mortgage industry. We will first explore the disclosure requirements set forth by the Truth in Lending Act (TILA), which was enacted to promote the informed use of consumer credit. Next, we will review the disclosure requirements imposed by the Real Estate Settlement Procedures Act (RESPA), which was implemented with the intention of helping consumers better shop for settlement services and eliminate unnecessary costs.

The disclosure aspects of both of these major pieces of legislation were affected by the TILA-RESPA Integrated Disclosure (TRID) rule, which implemented the mandate of the Dodd-Frank Act to simplify and consolidate the consumer disclosure forms required by each. In addition to creating two new forms that replaced the four previously required, the rule also introduced or changed items in Regulations Z and X, which implement TILA and RESPA. We will look at the implications of TRID in this course.

We will then explore the Home Ownership and Equity Protection Act (HOEPA), an amendment to the TILA that establishes disclosure requirements regarding high cost loans and prohibits unfair and deceptive practices. We will also review how the Equal Credit Opportunity Act (ECOA) and Fair Credit Reporting Act (FCRA) have impacted communication of disclosures regarding credit decisions. Finally, we will examine disclosures related to private mortgage insurance, set forth by the Homeowners Protection Act (HPA).

This is a single-family/residential course.