What does the Dodd-Frank Act aim to address in mortgage lending?
The Dodd-Frank Act aims to prevent predatory lending and ensure transparency and fairness in financial services, including mortgage lending.
What is the role of the Consumer Financial Protection Bureau (CFPB)?
The CFPB ensures that consumers are treated fairly by regulating the mortgage industry, investigating complaints, and enforcing consumer protection laws.
How does the Truth in Lending Act (TILA) protect consumers?
TILA ensures that lenders disclose the true cost of a loan, including the annual percentage rate (APR) and other related costs, before the borrower signs the loan agreement.
What is the purpose of the Home Mortgage Disclosure Act (HMDA)?
HMDA requires lenders to report information about mortgage applications to help ensure that lending practices are transparent and free from discrimination.
What is an example of predatory lending?
Predatory lending involves practices such as charging exorbitant fees, offering loans that the borrower cannot afford, or misrepresenting loan terms.
Why is it important for mortgage loan originators to comply with Fair Lending Laws?
Fair Lending Laws ensure that all borrowers are treated equally and without discrimination, promoting fair access to credit for all individuals.
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What does the Home Ownership and Equity Protection Act (HOEPA) regulate?
HOEPA regulates certain high-cost mortgage loans, ensuring that lenders provide adequate disclosures and fair practices when offering these loans.
What does the Equal Credit Opportunity Act (ECOA) prohibit?
ECOA prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, or age.
What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
RESPA ensures that borrowers are informed about the costs involved in the mortgage settlement process, including closing costs and lender fees.