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SAFE ACT FEDERAL LAW SIMULATOR
RESPA • TILA • TRID • ECOA • HMDA
Key Compliance Pillars
- RESPA (Regulation X): Focuses on cost disclosures and eliminating kickbacks.
- TILA (Regulation Z): Focuses on the cost of credit and advertising truthfulness.
- TRID: The TILA-RESPA Integrated Disclosure (Know Before You Owe) rule.
- ECOA (Regulation B): Prohibits discrimination in credit transactions.
MLO Federal Law 2025: Passing the NMLS SAFE Exam
Federal Law accounts for roughly 23% of the NMLS National Test. Mastery of these regulations is not just required for passing the exam—it is essential for legal compliance as a licensed Mortgage Loan Originator.
1. RESPA: Real Estate Settlement Procedures Act
RESPA was enacted to ensure consumers are provided with greater information on the nature and costs of the settlement process. One of the most tested sections is Section 8, which prohibits kickbacks and unearned fees.
2. TILA: Truth in Lending Act
Under Regulation Z, TILA ensures that credit terms are disclosed in a meaningful way so consumers can compare credit terms more readily. Key concepts include the **APR (Annual Percentage Rate)** and the **Right of Rescission** for primary residence refinances.
3. The TRID Rule (TILA-RESPA Integrated Disclosure)
Often called "Know Before You Owe," TRID combined four previous disclosures into two: the **Loan Estimate (LE)** and the **Closing Disclosure (CD)**.
| Disclosure | Timing Requirement |
|---|---|
| Loan Estimate (LE) | 3 Business Days from Application |
| Closing Disclosure (CD) | 3 Business Days before Consummation |
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