Term
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Definition
1. Dodd-Frank Wall Street Reform & Consumer Protection Act
2. 2010
3. To promote financial stability
4. to end "too big to fail"
5. to protect tax payers by ending bail-outs
6. to protect consumers from abusive practices
7. for other purposes
8. Established Consumer Financial Protection Bureau (CFPB) |
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Term
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Definition
1. created CFPB
2. assumed rule-making & enforcement of prior regulations pertaining to mortgage industry |
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Term
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Definition
1. concerned with regulations such as RESPA, TILA and others
2. Addressed concerns of borrowers and guidelines of mortgage industry to ensure this
3. ability to repay |
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Term
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Definition
| A type of loan in which the risk is greater than prime, but less than subprime. The borrower may have a strong credit history, but the mortgage may have elements that increase risk. Risk issues could invlude higher loan-to-value and debt-to-income rations, or lack of documentation about the borrower's income |
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Term
| Average Prime Offer Rate (APOR) |
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Definition
| An annual percentage rate derived from average interest rates, points, and other loan pricing terms that are currently offered to consumers by a representative sample of lenders for mortgage trsnactions that have low-risk pricing characteristics |
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Term
| Consumer Financial Protection Bureau (CFPB) |
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Definition
| An agency funded by the Federal Reserve with rulemaking and enforcement authority over may consumer financial laws. It was established under Title X of the Dood-Frank Act. |
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Term
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Definition
| Defined under the Dodd-Frank Act, effective 1/10/14 loans whose annual percentage rate APR exceeds the average prime offer rate by 6.5 oercentage points for most first lien mortgages and 8.5 percentage points for subordinate lien mortgages; where a loan's points and fees exceed 5 percent of the total transaction amount, or a higher threshold for loans below $20K; or wher the credit may charge a prepayment penalty more that 36 months after loan consummation or account opening, or penalties that exceed more than 2 percent of the amount prepaid |
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Term
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Definition
| Defined by 2009 ammendments to Regulation Z, include closed-end home purchase loans where the APR exceeds the average prime offer rate by at liest 1.5 % points for the 1st lien, or 3.5 % points for junior lien loans. The loans are known as Section 35 loans and can found in Section 35 of Regulation Z of the TILA, The APR is measured against the applicable average prime offer rate. |
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Term
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Definition
| Act of pooling mortgage and then selling them as mortgage-backed securities. |
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Term
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Definition
| loans that have more risks that allowed in the conforming market. Also called B-C Loans or B-C Credit. |
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Term
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Definition
has authority to investigate and conduct hearings on violations of most consumer protections laws. If it determines a violation has occurred, the CFPB may issue a cease and desist order or purse civil action.
It has NO authority to bring criminal charges, but could refer cases to the Department of Justice and mist reger potential tax law violations to the IRS. |
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Term
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Definition
Section 1013 of Substitle A of Title X created a number of offices within the CFPB:
1. Office of Fair Lendig and Equal Opportunity
2. Office of Financial Education
3. Office of Service Member Affairs
4. Office of Financial Protection for Older Americans |
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Term
| CFPB supports 3 functional units |
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Definition
1. Research Unit - provides analysis of trends in consumer financial products
2. Community Affairs Unit - tasked with consumer education and access
3. Complaints Unit - provides website and phone access for collecting and monitoring consumer complaints |
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