Federal mortgage regulations, in plain English

16 federal laws and rules govern how a U.S. mortgage is advertised, originated, disclosed, priced, serviced and foreclosed. Each one below is explained once — what it requires, whom it covers, what it does not do — and then read separately for 13 kinds of borrowers.

• Truth in Lending Act (TILA) and Regulation Z — TILA forces lenders to state the real cost of a mortgage the same way every time, and gives you three business days to walk away from most refinances.
• Real Estate Settlement Procedures Act (RESPA) and Regulation X — RESPA polices the money that moves around a closing — referral fees, escrow cushions, servicing transfers — and makes your servicer answer written questions on a clock.
• TRID: the Loan Estimate and Closing Disclosure — TRID puts every mortgage offer on the same three-page form, then locks most lender fees to what was quoted — and refunds you when they rise beyond the tolerance.
• Equal Credit Opportunity Act (ECOA) and Regulation B — ECOA makes it illegal to price or deny a mortgage on nine personal characteristics, and forces a written, reasoned answer on every application within 30 days.
• Fair Housing Act — The Fair Housing Act reaches every step of getting a home — advertising, appraisal, lending terms, insurance — and has no “small lender” exemption for mortgage discrimination.
• Home Mortgage Disclosure Act (HMDA) and Regulation C — HMDA does not give you a right against your lender; it gives the public the data that exposes redlining, pricing gaps and which lenders actually approve borrowers like you.
• SAFE Act and NMLS loan originator licensing — Every person who takes your mortgage application or negotiates its terms must carry a unique NMLS number — and it must be printed on your loan documents, so you can look them up.
• Ability-to-Repay and Qualified Mortgage rule (ATR/QM) — Since 2014 a lender must verify that you can actually repay a mortgage; a “qualified mortgage” is the lender’s reward for following a defined recipe, and your signal that the loan has no traps.
• HOEPA and high-cost mortgage rules — HOEPA draws a price line above which a consumer mortgage becomes “high-cost” — and then strips out the balloon payments, prepayment penalties and default-rate tricks that made such loans dangerous.
• Homeowners Protection Act (PMI cancellation) — The Homeowners Protection Act gives you a legal date on which private mortgage insurance must stop, and a right to request it earlier — no more paying for a lender’s protection you no longer need.
• CFPB mortgage servicing rules — The servicing rules are the borrower’s procedural shield after a missed payment: no foreclosure filing for 120 days, a mandatory review of your application, and deadlines a servicer cannot skip.
• Fair Credit Reporting Act (FCRA): credit reports, scores and trigger leads — The FCRA controls what a credit report may say about you, how fast errors must be fixed, and what a lender must show you when your score decides the price of your mortgage.
• Flood Disaster Protection Act and flood insurance requirements — If the building securing your mortgage sits in a mapped flood zone, federal law makes the lender require flood insurance for the life of the loan, and sets the rules for force-placement.
• MARS rule (Regulation O): mortgage assistance relief services — The MARS rule makes it illegal for a loan modification or foreclosure rescue company to take a dime before it delivers a written offer from your lender that you accept.
• Servicemembers Civil Relief Act (SCRA) — The SCRA caps interest on a mortgage taken out before active duty at 6% and forbids foreclosing on it without a court order during service and for a year after — if the servicemember asks.
• Loan originator compensation and anti-steering rules — Since 2011 a loan officer or broker may not earn more by putting you in a pricier loan, and may not be paid by both you and the lender on the same transaction.

State mortgage law

Federal rules set the floor. Usury, licensing, foreclosure procedure, transfer taxes and homestead protections are state law: see hard money rules by state and foreclosure law by state.