EstatePass

SAFE MLO test · Which law? · Episode 5

Regulation B to Z

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Chapters

  1. 0:00Ten letters
  2. 0:18Four you know
  3. 0:47The SAFE Act
  4. 1:24N and O
  5. 1:51X and Z
  6. 2:27Recap

In short

The SAFE exam uses ten CFPB regulation letters. B is ECOA, C is HMDA, P is GLBA privacy and V is FCRA. G and H come from the SAFE Act: G covers originators at banks and credit unions, who register in NMLS without a state license, and H covers state licensing for everyone else. N is the mortgage advertising rule and O covers mortgage relief services. X is RESPA and Z is TILA. Their part numbers in Title 12 run in the same order, from 1002 to 1026.

  • Regulation G: federal registration for bank and credit union originators.
  • Regulation H: state licensing, with the test, 20 hours of education and a background check.
  • Regulation N: no misleading mortgage ads; keep them 24 months.
  • Regulation O: no relief-service fee before the homeowner signs an agreement with the lender or servicer.

Transcript

0:00Ten letters

Regulation B, C, G, H, N, O, P, V, X and Z. Ten letters, and the exam expects you to know what each one covers.

0:18Four you know

Start with the four you already know from the laws behind them. Regulation B is ECOA: fair lending, and the notice when credit is denied. Regulation C is HMDA: the data a lender collects and reports on applications. Regulation P is GLBA. P for privacy. Regulation V is FCRA: credit reports, and who may use them.

0:47The SAFE Act

Next, a pair from the SAFE Act. These two are about you, the loan originator. Regulation G: originators at banks and credit unions register with NMLS. No state license. Regulation H: everyone else gets a state license, with the test, the education, and a background check. Pause. A loan officer works for a national bank. Which regulation covers her? Regulation G. Federal registration, not a state license.

1:24N and O

Two neighbors next: N and O. Regulation N is the advertising rule: no misleading claims about a mortgage, like pretending to be the government. Advertisers keep copies of their ads for 24 months. Regulation O covers mortgage relief services for homeowners who are struggling. No fee until the homeowner signs an agreement with the lender or servicer.

1:51X and Z

Last, the two you will see most: X and Z. Regulation X is RESPA: settlement costs, escrow accounts, and kickbacks. Regulation Z is TILA: the APR, disclosures, rescission, and how loan officers are paid. Together they make the Loan Estimate and the Closing Disclosure, and those rules sit in Regulation Z. One more pattern. Each letter has a part number in Title 12, and they run in the same order: 1002 for B, up to 1026 for Z.

2:27Recap

Fairness, data, licensing, ads, relief, privacy, reports, settlement, and the cost of credit. Next: the six calculations on the exam. Subscribe so you catch it.

Sources

  • 12 CFR 1002, 1003, 1007, 1008, 1014, 1015, 1016, 1022, 1024 and 1026
  • 12 CFR 1014.5 (record keeping)
  • 12 CFR 1015.5 (advance fees)

Independent study material. EstatePass is not affiliated with NMLS or CSBS, and nothing here is legal advice. Any lenders and borrowers in our episodes are fictional.