Introduction to Mortgage Origination Examinations Training

Introduction to Mortgage Origination Examination Training Policy Review Resource

Area for Review

Federal Regulation

What Should be Addressed

Advertising and Marketing

12 C.F.R. 1026 – Truth in Lending Act  12 C.F.R. 1026.16  12 C.F.R. 10.26.24 12 C.F.R. 1024 – Real Estate Settlement Procedures Act  12 C.F.R. 1024.14 12 C.F.R. 1014 – Mortgage Acts and Practices  12 C.F.R. 1014.3

Does the broker/lender have an advertising policy that addresses: 1. Internal process for marketing and review and monitoring? (Does this process vary for different marketing channels such as direct mail, television, and radio scripts, print and electronic advertising? What business units are involved with review?) 2. General marketing guidelines (e.g., use of Equal Housing Logo, FHA logo, licensing information) 3. Use of endorsements and testimonials 4. Promotions (i.e., sweepstakes and contests) 5. Rollout of new products 6. Reference to applicable federal regulations and state specific requirements 7. Marketing service agreements, private label/preferred lender arrangements, and use of lead generators if applicable to the Company’s business plan? 8. Use of social media? (Particularly official company accounts and accounts maintained by its employees.) 9. Record retention for maintaining advertising copy

42 U.S.C. 3601-3619 - Fair Housing Act

12 C.F.R. 1022 – Fair Credit Reporting Act  12 C.F.R. 1022.54

CFPB Mortgage Origination Exam Procedures

Appraisals

12 C.F.R. 1002 – Equal Credit Opportunity Act  12 C.F.R. 1002.14

Does the broker/lender have an appraisal policy that addresses: 1. Safeguards for appraiser independence 2. Separation of sales production and appraisal functions 3. Borrower receipt of appraisal