Unlock the eSignature Lawfulness for Home Loan in United Kingdom

How to eSign a document: e-signature lawfulness for Home Loan in United Kingdom

hi my name is pat o'connor and this is the sixth video in my national mortgage exam tutorial today we're going to cover six federal laws and if you want to know what's coming up next i do follow the outline that the nmls published for their exam content and there's a link to that in the description of the video if you enjoy the video and you think you learned something please subscribe there's a button down in the lower right hand corner you can like it and that's right above the description so that'll help me if you subscribe you'll get notified of when the next video is released so it's to your benefit as well if you prefer written material i do have a study guide for sale on amazon it's updated every year the link is up here it's available in both kindle and paperback format it's been around a few years now it's well received i have over 800 reviews and i update it every year okay let's get started first of the federal laws is graham leech bliley act it's glba and it was passed to protect an individual's of privacy with lending institutions that are not already covered by other laws so these include check cashing services mortgage companies title companies tax preparers so it's enforced by the federal trade commission and there's two parts to this the first is the financial privacy rule and it defines the difference between a consumer and a customer and the protections differ depending on what category an individual falls into a consumer has a short-lived um relationship with the company like you walk in to cash a check a customer is a mortgage company yeah work with them for you know 45 days or so to get a mortgage so they're a customer the consumer is given a privacy notice only if their business information is shared with non-affiliated companies whereas a customer receives an annual notice that gives them the right to opt out of um sharing information of most of the information so that's the financial privacy rule the safeguard rule says that these companies have to set up policies monitor what their employees are doing and they also have to monitor their service providers so they have to take all precautions to keep this information confidential okay do not call do not fax it applies to your personal phone calls it does not apply to your business phone now a lot of mortgage brokers they're one in the same right everybody's mobile typically we don't have a second number for business a lot of us take our calls on the one number you can't register well you're not supposed to register that phone number but your individual landline or cell phone you can register for free up to three numbers do not call dot com uh telemarketers even if um they're not on the register they cannot call anybody who asked them not to call right once they call a private an individual's cell phone number and you tell them over the phone do not call me anymore they can't call you uh even if they are not on do not call so sometimes you will walk into like an office like a mortgage broker's office and on the wall there may be a list do not call and it will have um you know person's name and their phone number and it will be around the stations like don't call these people okay exceptions to the telemarketing political organizations candidates can call charities they can do telephone surveys if they have an established business relationship you can continue to call for 18 months if someone made a customer inquiry you could continue to call for three months okay so 18 months if you've had a relationship with them 18 months after that relationship ends and three months if you ran an ad and they called you then you can continue to call them for three months telemarketers and the sellers who call have to search this registry every 31 days they have to pay i think you can pay by area code if you're going to search you have a certain number of area codes for free and then you have to pay for additional area codes and then obviously if you search and you find one of your customers numbers you have to add them to your own internal do not call list there is a safe harbor here because everybody makes mistakes so as long as you have a written policy about calling people not calling people on the register and you do search the registry every 31 days for calls you have this internal list and you can prove that it was made in error you won't get fined and the fines are steep the fine for 2022 was around 41 000. back when i first started teaching um you know mortgage stuff oh gosh i think it was like 4 000 um and and yeah so now it's like 41. and i'm sure we've all gotten the robo calls and all that kind of stuff i know there was one big case a few years ago a mortgage company because blue whale was robocalling throughout the united states to refinance the the rates had dropped pretty low and they were wrote and they got hit with a massive fine your state may also have uh do not call and uh you might want to check that as well depending on the state you're in they may not necessarily be in both state and federal and the state will act quicker than the national you know the national they may have to have a hundred complaints or a thousand complaints the state may act on one complaint okay additional telemarketer offenses include calling before 8 a.m or after 9 00 pm leaving a message without a phone number not identifying yourself leaving a pre-recorded message when you don't have a relationship with that person or you don't have permission to call and offering debt relief services without stating the the you know nitty-gritty of these services do not fax i don't know how important this is anymore i think i i don't know how many people steal facts but it does not apply to business taxes but the main thing is is you can't fax unless you have a pre-established relationship it has to be a public fax number and you have to have opt-out instructions on the first page please call this number or send an email and say you know take me off your list or some such thing okay so the next law is mortgage acts and and practices this is called regulation in maybe think of it l m n n comes after m we have a few of these if you've been listening to the previous videos or you paid attention when you were taking your course you know we got z we got x you know there's a whole by c um there's there's a whole bunch of them so this is n and they may make nice multiple choice questions okay and this is your advertising and you guys when you get licenses loan originators you will probably be doing well let me say this you may be doing your own advertising possibly you're in a larger firm where they do the advertising um but if you're in a smaller firm you're going to be doing your own advertising you have to keep copies of all that stuff for two years if you do radio ads you have to keep the script okay so um just just be aware so i keep a copy for two years and you can't misrepresent any part of a commercial advertisements now i'm just gonna list the things that you can't misrepresent they are also in the description of this video but you may not like to read so i'll tell you and maybe during your exam you will hear my voice in your head and it'll help jog your memory okay you cannot misrepresent interest rate apr monthly payment fees property taxes and insurance ancillary products such as credit insurance or credit disability insurance prepayment penalties variability of terms number of payments actions that constitute a default effectiveness of debt consolidation government endorsement oh fha says we're the best well no they don't ability to obtain a mortgage or pre-approval the right of a consumer to reside in a property and this is particularly important for reverse mortgages what if your spouse dies you know that kind of stuff and availability of counseling services so depending on some of the types of loans you get you may be required to have hud counseling before you sign the document okay so that's mortgage acts and practices keep them for two years all your ads and don't misrepresent any part of a transaction okay electronic signatures act uh e-sign act this is when everybody could just sign online um you know if you get your pdf files you can have a signature that you've already written out and then just paste it in you don't have to print everything out sign it and then scan it back in anymore so electronic signatures are fine i know like department of state in florida and for a lot of things my license renewal all of these kind of things you just type it in you don't need a cursive signature um so they're legal right as long as uh you consent but yeah i consent i'm gonna make this my legal i'm saying yes i consent in okay uh ways of verifying if it's the borrower um and you will have some services uh where we send contracts around and they are they can be password protected all right you you tell them you know what your customer what the password is um maybe it's say okay you open it up it's last four numbers of your social security right that's what my cpa does okay so ways of verifying a borrower include email phone social network id access codes and knowledge based identity checks uh like all right before you sign this if you have a fancy system did you own a pinto in you know what kind of car have you owned in the past pinto blah blah blah blah blah okay my very first car or one of my first ones you know long long time ago i had a pinto and you still have a record of it but that's me so those are the knowledge-based kind of questions did you live on you know the list like four streets which of these addresses did you live on okay uh u.s patriot act obviously this came up after 9 11. and it's huge and it's complex and there are i think it's over 100 pages and there's a small portion of it that applies to financials and that has to do with um again trying to detect like terrorist accounts um anti-money laundering i was working with lehman brothers in new york um 911 and shortly after that and i was in it i didn't have customer accounts but everybody in the company got notified uh look out for these account numbers and they just blasted everybody you know and they were terrorist accounts but that was a while ago now so patriot act loan originators and lenders must collect the borrower's name address birth date social security number or employee id number and a government issued photo identification before the patriot act you didn't need the photo id government-issued photo id now you do okay all the financial institutions have to establish a sip a cip a customer identification program to verify the identity of all account holders maintain confidentiality of all the documents establish an anti-money laundering policy report suspicious activity and the last video we talked about the tsar the suspicious activity report sar and i report any receipt of currency exceeding ten thousand dollars talked about that last week as well in the it's in the anti-money laundering act verified names of account holders against a federal database of known terrorists and fugitives and train the employees on policy compliance so that's the small little part of the patriot act that applies to you in your future career okay so the very last thing is a homeowner's protection act passed in 1998 and it was a great thing it could save people a lot of money what it does it gives the person the ability to cancel have their pmi private mortgage insurance now if you've already had your course you probably know what private mortgage insurance is pmi it does not apply to fha or va loans private mortgage insurance is with conventional loans if you put down less than 20 percent you have to pay a private more prorated private mortgage insurance and this is what reimburses lenders if you go into default it comes out of that private mortgage insurance bucket um so now if you pay down the loan so that you have 78 percent loan to value they have to automatically cancel your private mortgage insurance and it's it's based on the original value of the home it's not based on a new appraisal okay if you've had and that's if you um you know if you're not default on the mortgage i if you have a good payment record and your loan to value is 80 based on the original value of the home you can request it that they cancel it and they probably will because otherwise if interest rates are attractive you might refinance to get rid of it but okay so 78 mandatory as long as you're not in default and 80 you can request and the borrower has to be notified at closing uh if they are paying pmi you'll know you know that'll be that'll be clear because it's um you know your your mortgage payment plus that's going to be an additional thing and the procedure for canceling them in addition they must be sent an annual notice of their rights all right so that's the six federal laws for today the link to the practice exam is up here again it is case sensitive if you like this video you don't want to miss any more please subscribe and if you stay tuned for just a couple more minutes there will be links to additional videos that i've created in the past in this series you may want to click on them again right now this is number six and so far they're all uh federal laws because there's a whole bunch of them okay that's it i will see you next week bye you