FAIR HOUSING – FAIR LENDING POLICY ACKNOWLEDGEMENT
It is against (USML) US Mortgage Lenders LLC Policy to discriminate on any basis including a loan applicant’s race, national origin religion, marital status, gender, or age.
Practicing Fair Lending is a core value of USML. Any act of discrimination violates USML policy and its corporate philosophy of doing business. Our stand on nondiscrimination is absolute; there is zero tolerance for discriminatory acts or behavior. Treating everyone fairly and making decisions based solely on creditworthiness is doing the right thing, plain and simple. It is our policy and our practice to comply fully with the letter and spirit of fair lending and all other laws regulating our industry.
We expect all loan officers to fully understand fair lending practices and to deal fairly and equally with all loan applicants. We insist that all negotiations be in good faith and without bias. We require that the letter and the spirit of fair lending practices, the following Federal laws, and all statutes governing lending and equal rights comply within each jurisdiction in which the MLO conducts business.
Law/Summary
Fair Housing Act (FHA)
Prohibits discrimination in lending based on prohibited factors (race, color, religion, national origin, handicap, familial status, gender, and age). Also prohibits practices such as redlining, making excessively low appraisals, use of subjective or non-reviewable criteria, creating and exploiting a racially exclusive image, and expressing intent to discriminate against women.
http://www.hud.gov/offices/fheo/FHLaws/index.cfm
Equal Credit Opportunity Act (ECOA)
Prohibits discouraging applications and limits the manner in which lenders can inquire about marital status, spouses, former spouses, alimony and child support. Also establishes requirements for lenders such as providing copies of appraisals, providing appropriate disclosures, and preserving records from the application/transaction.
http://www.ftc.gov/bcp/conline/pubs/credit/ecoa.htm
In Process Fair Credit Reporting Act (FORA)
Regulates the activities of reporting agencies and the users of credit information and protects individuals from the invasion of privacy and the dissemination of false or inaccurate information. Requires disclosures when adverse action is taken. http://www.ftc.gov/os/statutes/fcra.htm
Home MortgageDisclosure Act (HMDA)
Requires lenders to collect certain information about the loans they make so the government can track applications and ensure lenders are taking and approving applications equally for all groups of people.
http://www.ffiec.pov/hmda/
Truth in Lending Act (TILA)
Requires the disclosure of information about the lender, amount financed, and the finance charge, payments, security, and interest rate. Also establishes that borrowers have a right to rescind most loans secured by their primary residence
within three business days of loan closing
http://www.federalreserve.gov/regulations/title12/sec226/12cfr226.01htm
Real Estate Settlement Procedures Act (RESPA)
Requires lenders to provide advance disclosure information on loan settlement procedures and costs. Also regulates the ways in which referrals between companies can be made and establishes parameters for the amount of money borrowers are required to place in an escrow account established for taxes and
insurance. http://www.hud.gov/offices/hsp/sfh/res/respa hm.cfm
Telemarketing Sales Rule
Establishes parameters regarding the manner in which telemarketing can be conducted. Specifies times during which telemarketing is permitted, information that must be disclosed to consumers during telemarketing, and that records must be kept of telemarketing transactions.
http://www.ftc.00v/bcp/telemarldrule.htm
As a condition of entering into and maintaining a business relationship with USML, you acknowledge the following:
1) acknowledges the understanding of USML fair lending policy 2) agrees to comply with the letter and spirit of all Federal, State, and local licensing, lending, disclosure, and consumer protection laws; 3) agrees to educate its principals, employees, affiliates, and agents about fair lending practices and the above laws; and 4) agrees to advise USML immediately upon ascertaining any violation of the above laws by its principals, employees, affiliates, third-party service providers or agents.
