Under the Truth in Lending Act (TILA) Regulation Z, for a refinance or non-purchase transaction secured by the borrower's principal dwelling, the right of rescission allows the borrower to rescind the transaction until midnight of the third business day following consummation or delivery of all material disclosures, whichever occurs last.
"The consumer may rescind the transaction until midnight of the third business day following consummation, delivery of the notice of right to rescind, and delivery of all material disclosures, whichever occurs last."
- 12 CFR § 1026.23(a)(3), Regulation Z
References:
CFPB, TILA Right of Rescission
SAFE MLO National Test Study Guide

Under RESPA Section 8(b), it is illegal for any person to give or accept any portion, split, or percentage of a settlement service fee other than for services actually performed. This is known as fee splitting or unearned fee splitting.
"No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a settlement service other than for services actually performed."
- 12 USC § 2607(b), RESPA Section 8(b)
References:
CFPB, RESPA Section 8 Prohibitions
SAFE MLO National Test Study Guide

The Uniform Residential Loan Application (URLA, Form 1003) requires a comprehensive listing of the applicant's assets and liabilities. This helps the lender determine the applicant's net worth and capacity to repay the loan.
"The application must contain a complete and accurate accounting of all borrower assets and liabilities."
- Fannie Mae Form 1003, Uniform Residential Loan Application Instructions References:
Fannie Mae, Form 1003 Instructions

A servicing transfer is when the responsibility for collecting payments, managing escrow accounts, and handling other aspects of loan servicing is moved from one lender or servicer to another. This is regulated by RESPA, which requires timely notification to borrowers.
"A servicing transfer is the transfer of the right to collect payments and service a mortgage loan from one servicer to another."
- CFPB, RESPA Servicing Transfer Disclosures
References:
CFPB, Mortgage Servicing Transfers
SAFE MLO National Test Study Guide

According to ECOA (Equal Credit Opportunity Act) and Regulation B, if a borrower waives the right to receive their appraisal three business days before consummation, and the transaction does not close, the creditor must still provide a copy of the appraisal within 30 days of determining that the loan will not consummate.
* This ensures that borrowers still receive essential documentation, even if the loan fails to close.
References:
* ECOA (Equal Credit Opportunity Act), 12 CFR §1002.14(a)(1)
* CFPB Guidelines on appraisal delivery timelines