Residential real estate lending requires compliance with numerous state and federal laws. State laws include the Texas Constitution, the Texas Property Code and the Texas Finance Code. Federal Laws include the Real Estate Settlement Procedures Act (RESPA) implemented by Reg X, the Equal Credit Opportunity Act implemented by Reg B, the Home Mortgage Disclosure Act (HMDA) implemented by Reg C, the Fair Housing Act, the Fair Credit Reporting Act implemented by Reg V, the Truth in Lending Act and Home Ownership and Equity Protection Act (TILA) both implemented by Reg Z and the Dodd-Frank Wall Street and Consumer Protection Act (Dodd-Frank) implemented by amendments to Reg Z. Penalties for violating these laws are severe. The Bank must have policies and procedures in place to insure compliance.
This Chapter provides a basic overview of each law or regulation and the documents and notices it requires the Bank to provide in connection with a residential real estate loan. This Chapter does not provide exhaustive coverage of these laws and regulations. Bank counsel should be consulted.