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The Big 8 Federal Mortgage Laws
These are the laws that appear on nearly every NMLS exam. Know each law, its regulation, its enforcer, and its key provisions cold.
| Law | Regulation | Enforcer | Core Purpose |
|---|
| RESPA | Regulation X | CFPB | Prohibit kickbacks in settlement services · Escrow rules · QWR |
| TILA | Regulation Z | CFPB | Disclose true cost of credit (APR) · Trigger terms · Right of Rescission · ATR/QM |
| TRID | Reg Z + Reg X | CFPB | Loan Estimate + Closing Disclosure · Tolerance buckets · Changed circumstances |
| ECOA | Regulation B | CFPB | Prohibit credit discrimination · Adverse action notices · 8 protected classes |
| HMDA | Regulation C | CFPB | Collect and report mortgage data to detect discrimination |
| Fair Housing Act | — | HUD / DOJ | Prohibit housing discrimination · 7 protected classes |
| HOEPA | Regulation Z | CFPB | Protect against predatory lending on high-cost mortgages |
| BSA / PATRIOT Act | — | FinCEN | Prevent money laundering · CTR and SAR requirements |
RESPA — Quick Reference
Section 8 — Most Tested
No Kickbacks Rule
Never give or receive anything of value in exchange for a referral of settlement service business. NO dollar threshold — even $5 is a violation. The EXCHANGE is the violation, not the amount.
Key Numbers
RESPA Numbers
Section 9 penalty: 3× title charge · Max escrow cushion: 2 months · QWR acknowledge: 5 business days · QWR respond: 30 business days
TILA — Quick Reference
Trigger Terms
What Triggers Full Disclosure
Specific rate · Specific payment · Specific loan amount · Specific down payment · Specific closing costs. Any ONE triggers all 5 required disclosures: APR, down payment, repayment terms, payment amount, number of payments.
Key Numbers
TILA Numbers
Rescission: 3 business days (primary residence refi only) · Rescission if no notice: 3 YEARS · QM DTI: 43% max · QM fees: 3% of loan amount · QM term: 30 years max
TRID — Quick Reference
The 6 Application Elements: Name · SSN · Income · Property Address · Estimated Value · Loan Amount. Credit score is NOT one of them — this is the #1 TRID exam trap.
Key Deadlines
TRID Timeline
LE delivery: 3 business days from complete application · CD delivery: 3 business days BEFORE closing · Min LE to closing: 7 calendar days · Cure window: 3 CALENDAR years
ECOA vs Fair Housing Act — Protected Classes
| ECOA (Regulation B) | Fair Housing Act |
|---|
| Race | Race |
| Color | Color |
| Religion | Religion |
| National Origin | National Origin |
| Sex | Sex |
| Marital Status ← ECOA only | Familial Status ← FHA only |
| Age ← ECOA only | Disability ← FHA only |
| Public Assistance ← ECOA only | — |
HMDA Action Codes
| Code | Meaning | Who Stopped It? |
|---|
| 1 | Loan Originated | — |
| 2 | Approved but Not Accepted | Borrower (after approval) |
| 3 | Application Denied | Lender |
| 4 | Application Withdrawn | Borrower (before decision) |
| 5 | File Closed for Incompleteness | — |
| 6 | Loan Purchased by Institution | — |
HOEPA — High-Cost Mortgage Triggers
ANY ONE of three tests triggers HOEPA high-cost status:
- APR test: First lien: APOR + 6.5% · Second lien: APOR + 8.5%
- Points-and-fees test: Fees exceed 5% of loan amount
- Prepayment penalty test: Penalty exceeds certain thresholds
Prohibited in HOEPA loans: Balloon payments · Negative amortization · Prepayment penalties · Due-on-demand clauses · Single-premium credit insurance
BSA Key Numbers
$10K
CTR Threshold
Cash transactions over $10,000 require Currency Transaction Report. Filed within 15 days.
30
SAR Days
Suspicious Activity Report must be filed within 30 days of detection. Extendable to 60 days.