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
Compliance professionals including compliance managers, officers, and other compliance team members whose primary role is within the compliance function at their financial institution; bank examiners, bank regulators, auditors and lending compliance professionals.
ABA Professional Certifications: 1.50 CRCM
ABA Certificates: This course applies to the ABA Certificate in Lending Compliance.
Carl Pry, J.D. CRCM, CRP
Carl Pry, Managing Director of Treliant, is a seasoned executive with banking law, corporate finance, and regulatory compliance experience in Fortune 500 financial institutions, regional banks, and industry consulting firms. He advises clients on commercial compliance, fair lending, corporate treasury, and risk management.
For more than 25 years, Carl has held senior leadership positions at KeyBank, Accenture, and Kirchman Corporation. He serves on the Editorial Advisory Board and contributes to the ABA Bank Compliance magazine. He has led many training sessions and examiner classes across the country and been the featured speaker for numerous banking, compliance, and state bar associations. Carl has also authored training programs covering consumer and commercial compliance, audit, quality control, tax, privacy, and risk management.
Re-Versioned: February 2022