Description
This course covers the Regulation Z closed-end credit provisions that apply to mortgage transactions, including adjustable-rate mortgages (ARMs), higher-priced mortgage loans (HPMLs), and high-cost mortgage (Section 32) loans and lines of credit. Learn the specific right of rescission established by the regulation for mortgage credit transactions, as well as important provisions related to many other aspects of these transactions such as: mortgage loan advertising, loan originator compensation, pre-closing homeownership counseling, valuation independence, restrictions on prepayment penalties and prohibition against mandatory arbitration. Requirements for escrow account cancellation and servicing of closed-end mortgage credit are also explained.
What You’ll Learn
After completing this course, students will be able to:
- Explain the Regulation Z requirements for adjustable-rate mortgages (ARMs), higher-priced mortgage loans (HPMLs), and Section 32 (high-cost) mortgage loans
- Identify the right of rescission provisions established by Regulation Z
- Describe the Regulation Z rules related to advertising, loan originator compensation and homeownership counseling
- Explain the regulatory provisions for valuation independence, prepayment penalties and arbitration
- State the requirements for advertising and servicing closed-end mortgage loans, including escrow account cancellation
