Real Estate Course Level 22
Level 22: Government Oversight of the Real Estate Industry - In this level, we are going
to learn about the laws that
... [Show More] protect consumers of credit, plus how to be on the lookout
for mortgage fraud and predatory lending.
Objectives:
By the end of this level, you will be able to:
Identify and explain key provisions of important legislation regulating the real estate
industry nationwide
Describe fraudulent practices and red flags which may identify fraud in lending.
Overview:
This level is approximately three hours long, which is how long you can leave a burrito
sitting in a hot car before food poisoning becomes basically guaranteed.
There are four chapters:
Chapter 1: TILA and RESPA
Chapter 2: Dodd-Frank and TRID
Chapter 3: Other Financing and Credit Laws
Chapter 4: Mortgage Fraud and Predatory Lending
Chapter 1: TILA and RESPA - After completing this chapter, you will be able to:
. Explain the difference between legislation (RESPA)
and regulation (Regulation Z).
. Describe the purpose of RESPA, TILA, and Regulation
Z.
Why It Matters:
The laws you're going to learn about in this level are designed to protect homebuyers.
The history of our industry has many instances of professionals taking advantage of
consumers. These laws are important safeguards for consumers' rights. If you care
about your clients (and I know you do!), you want to ensure you're doing right by them.
And even if you don't, you can get in hot water for violating these laws, so you might as
well learn what's in 'em.
Key Terms:
. RESPA
. Regulation Z
The Truth in Lending Act (TILA) - Back in the bad old days, there were some lenders
who took advantage of borrowers, offering loans with deceptively-advertised interest
rates or second mortgages that would end up costing the borrower their home.
In response, in 1968, Congress passed a law called the Consumer Credit Protection
Act. This law applies to all consumer lending — not just real estate — and requires
disclosure of the total cost of obtaining a loan.
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