HMDA & Regulation Z Compliance

HMDA & Regulation Z Compliance Course

In this course we will give an introduction to two different federal
laws that are essential to mortgage professionals that help protect borrowers.

1.    The Home
Mortgage Disclosure Act (HMDA);

2.    Regulation Z,
The Truth-in-Lending Act (TILA);

We will also discuss the need
for such legislation and what mortgage professionals must do to comply with
both laws. Topics covered include:

o   What
is HMDA?

o   HMDA
Reporting;

o   Using
HMDA Data to Identify Lending Discrimination;

o   The HMDA-LAR;

o   Changes
to HMDA in recent years;

o   HMDA
Disclosures;

o   History
of TILA & Reg Z;

o   Regulation
Z Protections for Borrowers;

o   Regulation
Z & HMDA’s Connection;

Key Components of the SAFE Act

Key Components of the SAFE Act Compliance Course

Mortgage loan originator
licensing was created specifically in Title 5 of HERA. Title 5 is the Secure
and Fair Enforcement for Mortgage Licensing (SAFE) Act. The intent of the SAFE
Act was to help bring long-term stability to the lending industry by
establishing uniform standards for licensing and education standards of
mortgage loan originators across the country. The reason for this was to
protect borrowers from unethical loan officers and/or risky loans, which contributed
to the subprime crisis. 

This course will focus on key components of Title 5 of HERA, the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act, such as:

  • Increased training requirements to originate loans;
  • A uniform licensing exam;
  • The development of a centralized database called the Nationwide Mortgage
    Licensing System & Registry (NMLSR);

Loan Originator Compensation Compliance Course

Loan Originator Compensation Compliance Course

This course will focus on the Loan Originator Compensation
Rule, or LO Comp Rule for short, which is Part of Regulation Z of the
Truth-in-Lending Act. This course should help bring clarification to key
regulatory issues and help keep you compliant.  Topics covered include:

o   What
the LO Comp Rule Accomplishes;

o   What
is Compensation;

o   Compensation
Provisions;

o   Record
Retention;

o   Essential
Aspects of the Rule;

Fair Lending Compliance Course for 2022

Fair Lending Compliance

Compliance with Fair Lending is not just a good suggestion, it’s the law! In fact, Fair Lending consist of 5 different laws and is an integral part of any company training program. In 2010 under the Dodd-Frank Act, Congress gave the Consumer Financial Protection Bureau (CFPB) authority over large banks, mortgage companies, and other businesses that offer credit and charged them with responsibility for ensuring “fair, equitable, and nondiscriminatory access to credit”. As a result, the CFPB published an examination manual that mentions the words ”Fair Lending” 116 times throughout the examination manual.

According to a CFPB source who spoke at the NMLS annual conference, “….the CFPB focus for examinations will be based on risk to consumers…we will look heavy at Fair Lending Review and HMDA data integrity…”

Banks, Lenders and anyone who offers credit to consumers are responsible for effectively training their staff and will be tested throughout any compliance review on whether or not they have an effective strategy and training program for all employees involved with any aspect of retail lending which may include customer service, origination, processing, underwriting and compliance. 

This Fair Lending Compliance Course is a great start to protecting your organization from compliance nightmares relating to Fair Lending Violations based on improper training of staff. It covers all 5 laws associated with Fair Lending, and provides multiple cartoon based case studies for learners to remain engaged in the course content. In addition, once complete, learners may access a printable course completion certificate to maintain for their training records. My Mortgage Trainer suggest students take an update to the Fair Lending Course as well as the Anti-Money Laundering course required under FinCEN on an annual basis.

“The CFPB’s Office of Fair Lending and Equal Opportunity, together with the Bureau’s Office of Enforcement, leads the Bureau’s enforcement of fair lending laws, including the ECOA and the Home Mortgage Disclosure Act (HMDA).”* “The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 22 lending matters under the Fair Housing Act, the ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $500 million in monetary relief for more than 300,000 individual borrowers.”*

 *As quoted from the CFPB web site.

GLB Safeguard Rule Compliance Course for 2022

The Gramm-Leach Bliley Act was amended to provide greater protection for private customer information.  This course explains the GLB Safeguard rules, how they affect you and your organization, as well as provide you with details on how to develop an information protection program that is compliant with the FTC’s tough new standards.  Avoid the costly fines by being proactive in developing your company’s privacy policies.

 

Mortgage Acts and Practices ( MAAPS) Advertising Compliance Course for 2022

Mortgage Acts and Practices (MAAPS) 

 Unless you are specifically exempted from FTC oversight anyone subject to MAAPS should be aware of this law and its requirements.  The FTC and State authorities can use this weapon to seek civil penalties for anyone caught using deceptive mortgage advertising.  This rule encompasses mortgage lenders, mortgage brokers, servicers, real estate agents, advertisers, brokers, builders, lead generators and more and companies should be certain their staff are appropriately trained on the rules to avoid penalties and/or fines.

This course covers the rule in a short 15 minute review of the law and provides a completion certificate for students who take the course and pass a short assessment that acknowledges their understanding of the content being presented.

This course is also part of our Compliance Pack of Courses for companies needing a full compliance training solution.

Anti Money Laundering / AML -SAR Compliance Course for 2022

This annually required course for MLO’s and other money related professions is laid out under regulations issued by FinCEN that require financial institutions to implement anti-money laundering (AML) programs to help curtail suspicious financial activity as it relates to transactions like mortgages.

Just like the FTC Red Flags Rule and GLB Safeguard Rule requirements, the AML plan will be different for every company as all companies vary based on size, scope, complexity. In other words, plans will not be identical. My Mortgage Trainer AML / SARS training course accomplishes 1 of the 4 minimum requirements under the new rules:

    • the development of internal policies, procedures, and controls;
    • the designation of a compliance officer;
    • an ongoing employee training program; and
    • an independent audit function to test programs.

This course will give an overview of the changes for non-bank lenders and originators and can be used as a guide to creating internal policies and procedures as well as appropriate tools needed to monitor employee’s compliance. Included is a short exam to complete prior to certification.

FCRA/FACTA & Red Flags Rule Compliance Course for 2022

The Red Flags Rule

The Red Flags Rule was promulgated in 2007. It was enacted into law as part of the Fair and Accurate Credit Transaction Act of 2003 (FACT Act or FACTA). The purpose of FACTA was to update and amend the Fair Credit Reporting Act (FCRA).

To better define the term “update and amend” the official purpose was “to amend the Fair Credit Reporting Act, to prevent identity theft, improve resolution of consumer disputes, improve the accuracy of consumer records, make improvements in the use of, and consumer access to, credit information, and for other purposes.”

As people who deal with consumer credit reports, this Act had quite an effect on mortgage brokers. Implementation of FACTA created disclosures and other provisions of credit information management that dramatically changed how mortgage lenders and brokers communicate with consumers.

Upon completion of The Red Flags Rule course, you will:

  1. Understand the origin, implementation timeline and enforcement of the Red Flags Rule
  2. Gain a full understanding of the purpose of the Red Flags Rule
  3. Understand who needs to comply with the law and able to identify the types of “covered accounts”
  4. Be able to implement and design a personal program under the Red Flags Rule

Redlining Compliance for Non-Bank Lenders in 2022

Redlining Compliance

Failure To Properly Train And Develop Staff On This Important Topic Annually Will Cost You In An Audit. 

  If you are looking for a way to align your compliance management plan and origination staff awareness, then you need this course. Its available now as an online, on demand non bank lender redlining training course and is a must have for ALL of your staff as proof that your organization is taking this matter seriously! (Yes, bank MLO’s and their staff can and should take this course as well!)

 The course is broken into 2 separate modules and covers the following topics:

    • What is Redlining
    • How History Shaped the current environment
    • What Laws Govern Redlining
    • Identifying a pattern or practice of discrimination
    • Types of Discrimination in lending
    • Does Redlining really apply to Non-Bank Entities
    • REMA (Reasonably Expected Market AREA) and MSA (Metropolitan Statistical Area)
    • Self Testing
    • The importance of cultural shift
    • The importance of community outreach in under-served areas
    • Leverage

Course comes complete with a comprehensive review as well as a Completion Certificate for employee files in the face of an audit.

TILA RESPA Integrated Disclosure Requirement Course for 2022

Mortgage professionals nationwide must use TRID required mortgage disclosure forms as part of the “Know Before You Owe Rule” as mandated under the Dodd-Frank Act and implemented by the Consumer Financial Protection Bureau (CFPB).  

This course is designed to introduce mortgage professionals to the TILA-RESPA integrated disclosure mash up of the formerly known as GFE and TIL Disclosure which will now be known as The Loan Estimate as well as the HUD -1 Settlement Statement now known as The Closing Disclosure respectively.

This course will give a brief overview of the rule and how to comply by covering the following topics:

  •  Introduction to the Rule
  • Introduction to the Loan Estimate
  • Introduction to the Closing Disclosure
  • New Timing Requirements
  • Tolerances

 According to the MLO Compensation Rules ALL mortgage companies and Financial Institutions who operate in the mortgage industry are responsible for providing training commensurate with their employee’s scope of work.   

Get a jump on training your staff today by providing this 30 minute online informative training course to all of your mortgage staff.  This course comes with a printable Completion Certificate for employee and employer records.