What is the Home Loan Protection Act?
The Homeowners Protection Act protects homeowners by prohibiting life-of-loan PMI coverage for borrower-paid PMI products and establishing uniform procedures for canceling PMI coverage. The Consumer Financial Protection Bureau (CFPB) supervises and enforces compliance with the Homeowners Protection Act.
Who is responsible for enforcing the Home Loan Protection Act?
Effective July 21, 2011, the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) has been transferred to the Consumer Financial Protection Bureau (CFPB) for administration and enforcement.
What is the name of the New Mexico law governing high cost home loan transactions?
Chapter 58 – Financial Institutions and Regulations. Article 21A – Home Loan Protection.
What is the maximum late fee that a lender can charge on a high cost home loan?
4 percent
(i) General. Any late payment charge imposed in connection with a high-cost mortgage must be specifically permitted by the terms of the loan contract or open-end credit agreement and may not exceed 4 percent of the amount of the payment past due.
How long is a temporary mortgage license good for in Arizona?
120 days
The MLO with TA can continue working for 120 days regardless of whether they pass or fail their Testing and Education requirements.
What can trigger a high-cost mortgage?
A loan is considered “high-cost” if the borrower’s principal dwelling secures the loan and one of the following is true:
- The loan’s annual percentage rate (APR) exceeds a certain threshold.
- The amount of points and fees paid in connection with the transaction exceed a specific threshold.
What is a safe harbor fee?
The rule also provides a safe harbor for the dollar amount of penalty fees. For 2020, these amounts are $29 for the first violation and $40 for a second violation within six billing cycles. These amounts are adjusted annually for inflation but will remain unchanged for 2021.
What are examples of HOEPA violations?
Practices Prohibited Under HOEPA
- Mortgage brokers and lenders are prohibited from recommending a default on an existing loan to be once again financed by a high-cost mortgage.
- Neither creditors, lenders, servicers, or brokers should charge a fee to modify, renew, defer, amend, or extend a high-cost mortgage.