Knowledge Tree
Mortgage Reform Act
Facts (9)
Sources
Financial Ethics 101: Predatory Lending - Seven Pillars Institute 7pillarsinstitute-org.sevenpillarsconsulting.com Jun 18, 2024 9 facts
procedureUnder the Mortgage Reform Act, a qualified mortgage must not allow regular periodic payments to increase the principal balance, must not allow the deferral of principal repayment, must not include a scheduled payment more than twice as large as the average of earlier payments, must not exceed thirty years, and must have total points and fees that do not exceed 3 percent of the total loan amount.
claimThe Mortgage Reform Act was signed into law as Title XIV of the Dodd-Frank Act in July 2010.
procedureThe Mortgage Reform Act prohibits mortgage originators from steering consumers toward specific types of mortgages.
procedureThe Mortgage Reform Act requires mortgage originators to verify that a consumer has a reasonable ability to repay the loan.
procedureUnder the Mortgage Reform Act, a qualified mortgage may not exceed a term of thirty years.
measurementUnder the Mortgage Reform Act, the total points and fees payable in connection with a loan may not exceed 3 percent of the total loan amount.
procedureThe Mortgage Reform Act prohibits mortgage originators from receiving compensation based on the terms of the mortgage.
procedureUnder the Mortgage Reform Act, a qualified mortgage may not include a scheduled payment that is more than twice as large as the average of earlier scheduled payments.
procedureUnder the Mortgage Reform Act, a qualified mortgage must not have regular periodic payments that increase the principal balance or allow the consumer to defer repayment of principal.