Fair and Responsible Lending

This is a policy guide to adhere to Fair and Responsible Lending within laws and regulations governing a mortgage banker. This a separate policy guide. Once purchased this guide will be customized to your specifications. You will receive an immediate invoice receipt with a download link to a questionnaire with some simple questions to answer and receive your customized guide within 24-48 hours. This is written for independent mortgage bankers but can be customized for depository financial institutions and credit unions. 

Table of Contents

FAIR AND RESPONSIBLE LENDING POLICY

• PURPOSE
• FAIR LENDING LAWS
• INFORMED AND AWARE ASSOCIATES
• INDIVIDUAL RESPONSIBILITY
• THIRD PARTY SERVICE PROVIDERS
• EXPECTED COMPLIANC
• SCOPE

EQUAL CREDIT OPPORTUNITY ACT (ECOA – REGULATION B)

• Prohibited Factors of Discrimination
• Disparate Treatment and Disparate Impact
• Inquiry vs. Application
• Discouraging Consumers from Applying for a Loan
• Right to Receive a Copy of the Appraisal 6
• Notification of Action Taken
• Adverse Action
• Information We May Provide to Consumer Reporting Agencies

TAKING AND EVALUATING APPLICATIONS

FAIR HOUSING ACT

UNFAIR, DECEPTIVE, OR ABUSIVE ACTS, AND PRACTICES ACT (UDAAP)

ANTI-STEERING

• HIGHER-PRICED MORTGAGE LOANS (HPML) AND HIGH COST MORTGAGES (HCM)

NOTIFICATIONS

• Adverse Action Notice
• Notice of Incompleteness
• Right to a Copy of the Appraisal
• Loan Options Notice (Anti-Steering)
• Pre-screening

USE OF HOME MORTGAGE DISCLOSURE ACT (HMDA) DAT

• SELF-TESTING

STATE LAWS AND REGULATIONS

RECORD RETENTION

• APPLICATIONS
• PRESCREENED APPLICATIONS
• SELF-TESTS

APPENDIX A - DEFINITIONS

• ADVERSE ACTION
• APPLICATION (UNDER ECOA)
• COMPLETED APPLICATION
• CONSUMMATION
• DISCLOSURE SCRIPT (FOR DEMOGRAPHIC INFORMATION DATA COLLECTION)
• DWELLING
• ECOA NOTICE
• MARITAL STATUS
• PERSON
• TYPES OF TRANSACTIONS (ANTI-STEERING POLICY)
• VALUATION

REVIEW AND VERSION CONTROL