What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
RESPA protects consumers by requiring disclosures and prohibiting kickbacks in real estate transactions.
What is one key requirement of the Truth in Lending Act (TILA)?
TILA requires lenders to clearly disclose loan terms, interest rates, and fees before the agreement is finalized.
Which federal agency enforces consumer protection laws in mortgage lending?
The CFPB regulates mortgage practices and enforces laws to protect consumers.
Why is ethical conduct important in mortgage processing?
Ethical practices promote trust, ensure legal compliance, and protect consumers from fraud or abuse.
What does the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) require?
The SAFE Act mandates registration and background checks for mortgage loan originators.
What is considered a best practice when handling sensitive borrower data?
Following data protection laws and using secure systems ensures privacy and prevents identity theft.
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What does anti-discrimination in lending mean?
Lenders cannot base decisions on race, religion, gender, or other protected classes under the ECOA and FHA.
Why is it important to disclose all fees upfront?
Upfront disclosures prevent misunderstandings and ensure the borrower knows total costs.
What is one benefit of adhering to industry best practices?
Following best practices improves efficiency, compliance, and customer satisfaction.