Overview. The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.

What are the principle of lending?

safety • The safety of funds lent is another principle of lending. Safety means that the borrower should be able to repay the loan and interest in time at regular intervals without default.

Who is responsible for fair lending compliance?

Enforcement / Liability The National Credit Union Administration has responsibility for enforcement at federal credit unions with less than $10 billion in assets. The Federal Trade Commission enforces Regulation B at state- chartered credit unions with less than $10 billion in assets.

Why do mortgage lenders ask so many questions?

Why they ask: The mortgage lender will ask questions about your debts for similar reasons to the income questions. They want to know how much of your monthly income is going toward your debts (including credit card payments, car payments, personal loans and the like).

What are the benefits and drawbacks of a mortgagee endorsement?

This status should be requested on all loans where the lender has issued a mortgage or deed of trust. Benefits/Drawbacks: On most mortgagee endorsements, lenders are provided with a few key rights. One right is to receive loss payment, even if the borrower invalidates the insurance contract.

What should I ask when I interview for a mortgage?

Of course you’ll want to compare official Loan Estimates to see which loan makes most sense for you and your family, but you’ll also want to interview your contending lenders to see if you’re comfortable working with them. Not sure exactly what to ask? We’ve compiled this list of questions to help you in your interview process.

How many lenders should I talk to to find the best loan?

If you want to find the best loan for you, the Consumer Finance Protection Bureau recommends talking to at least three different lenders when shopping for a mortgage to compare loan options.