Truth in Lending Act (TILA) and Regulation Z: Federal law that requires lenders to provide standardized disclosures about terms and costs associated with lending, including HELOCs. Regulation Z implements TILA and provides specific requirements for home equity lines of credit.
Real Estate Settlement Procedures Act (RESPA): Federal law that requires lenders to provide disclosures to borrowers about the real estate settlement process and prohibits certain practices, such as kickbacks and referral fees.
Equal Credit Opportunity Act (ECOA): Federal law that prohibits discrimination in lending based on race, color, religion, national origin, sex, marital status, age, or whether the applicant receives public assistance.
Fair Credit Reporting Act (FCRA): Federal law that regulates the collection, dissemination, and use of consumer credit information, including requirements for lenders when using credit reports.
Home Ownership and Equity Protection Act (HOEPA): Federal law that provides additional disclosure requirements and restrictions for certain high-cost mortgage loans, including some HELOCs.
Dodd-Frank Wall Street Reform and Consumer Protection Act: Comprehensive federal law that introduced significant changes to financial regulation, including new requirements for mortgage lending and the creation of the CFPB.
State Usury Laws: State-specific laws that set maximum interest rates and regulate other lending terms that can be charged on loans, including HELOCs.
State Consumer Protection Laws: State-specific laws designed to protect consumers from unfair or deceptive lending practices, including requirements for loan modifications.
State Mortgage and Lending Regulations: State-specific rules governing mortgage lending, including licensing requirements, disclosure obligations, and operational standards.
State Recording Requirements: State-specific rules for recording mortgage documents and modifications with appropriate government offices.
CFPB Guidelines: Regulatory guidance from the Consumer Financial Protection Bureau regarding HELOC modifications, disclosures, and consumer protection requirements.
Federal Reserve Board Regulations: Banking regulations that may affect HELOC modifications, particularly regarding safety and soundness considerations.
OCC Requirements: Office of the Comptroller of the Currency guidelines for national banks regarding HELOC modifications and risk management.
Uniform Commercial Code (UCC): Standardized state laws governing commercial transactions, including secured lending provisions that may affect HELOC modifications.
State Foreclosure Laws: State-specific laws governing the foreclosure process and borrower rights, which may impact HELOC modification terms.
COVID-19 Related Requirements: Federal and state requirements specific to loan modifications made in response to the COVID-19 pandemic, including special forbearance provisions.
