What is a anti-steering disclosure?
An Anti-Steering Loan Options Disclosure is required for all transactions where a Mortgage Loan Originator is compensated by someone other than their employer or the consumer. This would include any broker transactions where the lender is paying the mortgage broker compensation.
What is anti-steering safe harbor disclosure?
The Anti-Steering Disclosure must: Indicate the types of transactions the consumer is interested in; Clearly indicate the options presented for each type of transaction the consumer is interested in; Indicate the option selected by the consumer; and Be signed and dated by the Loan Originator and the consumer(s).
What is steering in lending?
“Steering” is the practice of influencing a buyer’s choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.
What is the purpose of the Loan Originator rule?
The rule prohibits a creditor or any other person from paying, directly or indirectly, compensation to a mortgage broker or any other loan originator that is based on a mortgage transaction’s terms or conditions, except the amount of credit extended.
Which of the following is an example of a non deferred profits based compensation plan?
Any non-deferred profits-based compensation such as bonus pools, profit pools, bonus plans, and profit-sharing plans earned during the relevant time period.
What does regulation Z cover?
Regulation Z protects consumers from misleading practices by the credit industry and provides them with reliable information about the costs of credit. It applies to home mortgages, home equity lines of credit, reverse mortgages, credit cards, installment loans, and certain kinds of student loans.
What is a form of steering?
Steering is a form of redlining, in that you deny a service to someone based on their race, religion, family status, etc. It’s worth mentioning redlining for the real estate exam will likely refer to discrimination in the lending industry by not granting loans to people of a protected class.
What is another name for regulation Z?
the Truth in Lending Act
Created to protect consumers from predatory lending practices, Regulation Z, also known as the Truth in Lending Act, requires that lenders disclose borrowing costs upfront and in clear terminology so consumers can make informed decisions.