CFPB ✔✔Consumer Financial Protection Bureau What does the CFPB do? ✔✔Regulates RESPA, TILA, ECOA, and HMDA FTC ✔✔Federal Trade Commission What does the FTC do? ✔✔Monitors Red Flag Rules RESPA ✔✔Real Estate Settlement Procedures Act What does RESPA do? ✔✔•Protects homeowners of Single, 1-4 family dwellings, condos, & homes manufactured on lot. •Educates borrowers costs of loan • Eliminates kickbacks and referral fees (section 8) • Establishes rules for escrow What Regulation is RESPA? ✔✔Reg X (X-ray of my RESPAtory system) Who oversees RESPA? ✔✔(CFPB) Consumer Financial Protection Bureau How long must records be kept under RESPA? ✔✔5 years (RESPA has 5 letters= 5 letters of record keeping) What are the penalties for violating RESPA? ✔✔$10k, 1 yr in prison OR both (5 years x 2= $10,000 fine) TILA ✔✔Truth in Lending Act What does TILA do? ✔✔• part of the Federal Consumer Protection Act and lays out disclosure requirements, advertising requirements as well as rights of rescission and penalties for violation. • Requires creditors to disclose certain key terms and costs of the transaction What Regulation is TILA? ✔✔Reg Z (Today I learned about Zebras. They cost 5k for the first 3 years of life) Who oversees TILA? ✔✔•Consumer Financial Protection Bureau (CFPB), •Advertising: Federal Trade Commission (FTC) How long must records be kept under TILA? ✔✔3 Years (Today I learned about Zebras. They cost 5k for the first 3 years of life) What are the penalties for violating TILA? ✔✔$5k, 1 year Prison or both $500k for class action suits or 1% if net worth of servicer, whichever is less (Today I learned about Zebras. They cost $5k for the first 3 years of life) ECOA ✔✔Equal Credit Opportunity Act What does ECOA do? ✔✔• Keeps lenders form discriminating for age, race, religion, sex, marital status, color, national origin, income from government, or exercising rights under CCPA • Promotes the availability of credit to all applicants • Requires notice of adverse action within 30 days • Handicap is NOT protected by this law (See Fair Housing Lending Laws) What regulation is ECOA? ✔✔Reg B (Be Equal) Who oversees ECOA? ✔✔Consumer Financial Protection Bureau (CFPB) How long must records be kept under the ECOA? ✔✔25 Months (25 letters in "Equal Credit Opportunity Act) What are the penalties for violating ECOA? ✔✔$10k individual fine $500,000 Class Action Lawsuit HMDA ✔✔Home Mortgage Disclosure Act What does HMDA do? ✔✔• Provides Data to public, assists public officials, and identifies evidence of descrimination • Stops Redlining (Government monitoring section 10 of 1003 What regulation is HMDA? ✔✔Reg C ("C" you at home) Who oversees HMDA? ✔✔Consumer Financial Protection Bureau (CFPB) Created by Federal Reserve Board (FRB) How long must records be kept under HMDA? ✔✔3 years Reported on LAR report and turned in every March 1st (LAR has 3 letters= 3 years) FCRA ✔✔Fair Credit Reporting Act What regulation is FCRA? ✔✔Reg V ( "V"ery Fair Credit)