Truth in Lending Act (TILA)

This is a policy guide to comply with requirements under the Truth in Lending Act (TILA) for mortgage lenders. 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

OVERVIEW

APR

• ANNUAL PERCENTAGE RATE
• CALCULATING THE APR
  • Construction and Construction-Permanent Loans
  • Separate Transactions
  • Interest Reserves
  • 360-Day and 365-Day Years for Computation Purposes
• FINANCE CHARGE
• PREPAID FINANCE CHARGES
• THIRD PARTY CHARGES
• AMOUNT FINANCED
• TOTAL OF PAYMENTS
• PAYMENT SCHEDULE
• RESCISSION
  • Rescission Tolerance Table
• RESCISSION RIGHTS IN FORECLOSURE
  • Foreclosure Tolerance Table

DISCLOSURES

• CLOSED-END LOANS
  • TRID Rule Disclosures
  • TILA Disclosures
  • ARM Loans
  • Purchase Money Loans
  • Upfront Fees
  • Request for Documents
  • Revised Disclosures
• OPEN-END LOANS (HELOCS)
  • Application Disclosures
  • Subsequent Disclosure Requirements
  • Notice of Change in Terms

PROHIBITED ACTS OR PRACTICES

• UNLICENSED ACTIVITIES
• LOAN ORIGINATOR COMPENSATION
• WAIVERS OF BORROWER RIGHTS
• FINANCING CREDIT INSURANCE PREMIUMS
• EVADING HOEPA REQUIREMENTS
• NEGATIVE AMORTIZATION

HIGHER-PRICED MORTGAGE LOANS

• LOANS SUBJECT TO HPML
• EXCLUDED LOAN TYPES
• HPML CALCULATION
  • Average Prime Offer Rate
• ESCROW REQUIREMENTS
  • Escrow Account Not Require
• ESCROW ACCOUNT CANCELLATION
• APPRAISAL REQUIREMENTS
• HPML DISCLOSURES
• PREPAYMENT PENALTIES
• AUTOMATED COMPLIANCE REVIEWS

HOEP

• HIGH COST HOME LOAN
  • Average Prime Offer Rate
• PREDATORY LOAN
• COVERED LOAN TYPES
• OCCUPANCY TYPES
• TOTAL LOAN AMOUNT
• BONA FIDE DISCOUNT POINTS
• HOEPA PROHIBITIONS
• PRE-LOAN COUNSELING REQUIREMENT
• EVASION
• AUTOMATED COMPLIANCE REVIEWS

ABILITY-TO-REPAY / QUALIFIED MORTGAGE RULE

• POLICY
• TYPES OF LOANS SUBJECT TO THE RULE
• EXCLUDED LOAN TYPES
• ATR REQUIREMENTS
• QM RULE REQUIREMENTS
  • General QM Rule Requirements
  • Temporary Authority QM Rule Requirements (No Cap on DTI)
• QM TYPES
• Safe Harbor QM
• Rebuttable Presumption QM
• APPENDIX Q
  • HTTPS://WWW.CONSUMERFINANCE.GOV/POLICY-COMPLIANCE/RULEMAKING/REGULATIONS/1026/Q/#1B-1
• QM POINTS AND FEES TEST THRESHOLDS
• NON-QM LOANS
• RELATION TO THE QRM RULE

ADVERTISING

• TRIGGERING TERMS
• PROHIBITED ACTS OR PRACTICE

SERVICING PRACTICES

• PAYMENT PROCESSING
  • Periodic Payments
  • Partial Payments
  • Non-Conforming Payments
  • Payoff Statements
• PERIODIC STATEMENTS
  • Form
  • Timing
  • Exemptions
• ADDITIONAL DISCLOSURE REQUIREMENTS
• SERVICING RULE AMENDMENTS
• MORTGAGE OWNERSHIP TRANSFER DISCLOSURES

RECORD RETENTION

• CLOSING DISCLOSURE
• LO COMPENSATION
• ADVERTISING
• BORROWER DISPUTES

APPENDIX A (Definitions)

• BUSINESS DAY
  • General Business Day
  • Specific Business Day
• CONSUMMATION
• FEDERAL HOLIDAYS
• PREPAID FINANCE CHARGE