Institutions that offer nontraditional mortgage products should make sure they comply with the following, as applicable, EXCEPT:
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A. B. C. D.C
The correct answer is C. RESTA.
The Truth in Lending Act (A), also known as Regulation Z, requires lenders to disclose the terms and costs of credit to borrowers in a clear and understandable manner. This helps borrowers compare loan offers and make informed decisions about which loan is right for them.
The FTC Act (B) prohibits unfair and deceptive acts and practices in commerce, including mortgage lending. This law is enforced by the Federal Trade Commission and provides additional consumer protection against fraudulent or deceptive practices in the mortgage industry.
State laws prohibiting deceptive trade practices (D) also provide consumer protection against unfair and deceptive practices in the mortgage industry. These laws vary from state to state but generally prohibit lenders from making false or misleading statements to borrowers or engaging in other deceptive practices.
The Real Estate Settlement Procedures Act (C), or RESPA, is a federal law that regulates the real estate settlement process. While it does not specifically regulate nontraditional mortgage products, it does require lenders to disclose settlement costs to borrowers and prohibits certain practices, such as kickbacks or referral fees.
In summary, institutions that offer nontraditional mortgage products must comply with a range of laws and regulations, including the Truth in Lending Act, the FTC Act, state laws prohibiting deceptive trade practices, and RESPA (except for C in the question). Compliance with these laws is essential to protect consumers and ensure fair lending practices.