Mortgage Origination Toolkit
This Toolkit contains resources to help financial institutions ensure that their residential mortgage origination activities comply with federal consumer financial laws. In particular, this Toolkit includes resources to help institutions comply with the Dodd-Frank requirements concerning consumer repayment ability, loan originator compensation and disclosures.
A financial institution that originates residential mortgage loans must comply with federal consumer financial laws. These laws include Title XIV of the Dodd-Frank Act ( www.practicallaw.com/4-502-8619) , known as the Mortgage Reform and Anti-Predatory Lending Act, which imposes a repayment ability standard on residential mortgages. Title XIV of Dodd-Frank also created new standards for loan originator compensation, as well as requirements for mortgage origination disclosures, which amended the Real Estate Settlement Procedures Act ( www.practicallaw.com/1-543-8665) and the Truth in Lending Act ( www.practicallaw.com/6-543-4047) . A financial institution must ensure that it implements these regulatory changes into its mortgage origination business to avoid the risk of enforcement.
This Toolkit provides resources to assist financial institutions with understanding and implementing the regulatory changes governing residential mortgage loan originations.