Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

Dodd-Frank: Title XIV - Mortgage Reform and Anti-Predatory Lending Act

Read a random definition: standing to sue

A quick definition of Dodd-Frank: Title XIV - Mortgage Reform and Anti-Predatory Lending Act:

Dodd-Frank: Title XIV - Mortgage Reform and Anti-Predatory Lending Act is a law that was created after the 2008 economic crisis. It aims to prevent predatory lending practices in the mortgage industry by establishing minimum standards for mortgage products and requiring mortgage originators to be properly qualified and licensed. The law also requires additional disclosures to be given to borrowers and prohibits certain types of prepayment penalties. Additionally, the law establishes an Office of Housing Counseling to provide information and assistance to borrowers during the mortgage application process. The law also requires creditors to get a written appraisal of the property before extending a higher-risk mortgage to a borrower and creates a program to help protect current and future residential tenants.

A more thorough explanation:

Definition: The Dodd-Frank Act was created in response to the 2008 economic crisis, which was partly caused by the real estate bubble bursting. Title XIV of the Act, also known as the Mortgage Reform and Anti-Predatory Lending Act, aims to protect borrowers from predatory lending practices and establish minimum standards for mortgage products.

Examples: Title XIV includes provisions such as:

  • Requiring mortgage originators to be properly qualified, registered, and licensed, and to comply with regulations designed to monitor their operations.
  • Prohibiting mortgage originators from receiving compensation that is correlated to the face amount of the loan, which should reduce incentives for steering borrowers towards loans they cannot repay.
  • Establishing minimum standards for all mortgage products, including a requirement for creditors to reasonably determine that the borrower can repay the loan based on their credit history, income, and other factors.
  • Prohibiting certain types of prepayment penalties and balloon payments that rapidly increase scheduled payments.
  • Requiring additional disclosures to borrowers for home mortgages, both at the time the mortgage is made and in monthly loan statements.
  • Establishing the Office of Housing Counseling to provide information, educational programs, and assistance to borrowers during the mortgage application process.
  • Prohibiting mortgage servicers from obtaining force-placed insurance without reasonable basis, charging fees for responding to valid written requests, and failing to comply with other obligations.
  • Requiring creditors to get a written appraisal of the property before extending a higher-risk mortgage to a borrower.
  • Creating a program to help protect current and future residential tenants by making sure the property owner has sustainable financing and funds for rehabilitation of the property.

Explanation: These examples illustrate how Title XIV of the Dodd-Frank Act aims to protect borrowers from predatory lending practices and establish minimum standards for mortgage products. By requiring mortgage originators to be properly qualified and prohibiting certain types of prepayment penalties and balloon payments, borrowers are less likely to be steered towards loans they cannot repay. The additional disclosures and establishment of the Office of Housing Counseling also provide borrowers with more information and assistance during the mortgage application process. The Act also aims to protect tenants and establish a program to provide foreclosure legal assistance to low- and moderate-income homeowners and tenants.

Dodd-Frank: Title XIII - Pay It Back Act | Dodd-Frank: Title XV - Miscellaneous Provisions

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.