source:
  type: regulation
  id: reg-z-1026.36
  authority: 12 CFR §1026.36 — Prohibited acts or practices and certain requirements for credit secured
    by a dwelling
  description: Regulation Z §1026.36 governs loan-originator compensation, dual-comp prohibition, anti-steering,
    MLO qualification (SAFE Act), NMLSR ID on loan documents, and the prohibition on mandatory arbitration
    clauses.
obligations:
- id: reg-z-1026.36-a
  canonical_id: reg-z-1026.36-a
  section: 12 CFR §1026.36(a)
  description: '(a): (a) Definitions —(1) Loan originator.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (a) Definitions —(1) Loan originator.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) For purposes of this section, the term “loan originator” means a person who,
    in expectation of direct or indirect compensation or other monetary gain or for direct or indirect
    compensation or other monetary gain, performs any of the following activities: takes an application,
    offers, arranges, a…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) For purposes of this section, the term “loan originator” means a person who,
      in expectation of direct or indirect compensation or other monetary gain or for direct or indirect
      compensation or other monetary gain, performs any of the following activities: takes an application,
      offers, arranges, assists a consumer in obtaining or applying to obtain, negotiates, or otherwise
      obtains or makes an extension of consumer credit for another person ; or through advertising or
      other means of communication represents to the public that such person can or will perform any of
      these activities. The term “loan originator” includes an employee, agent, or contractor of the creditor
      or loan originator organization if the employee, agent, or contractor meets this definition. The
      term “loan originator” includes a creditor that engages in loan origination activities if the creditor
      does not finance the transaction at consummation out of the creditor''s own resources, including
      by drawing on a bona fide warehouse line of credit or out of deposits held by the creditor. All
      creditors that engage in any of the foregoing loan origination activities are loan originators for
      purposes of paragraphs (f) and (g) of this section. The term does not include: (A) A person who
      does not take a consumer credit application or offer or negotiate credit terms available from a
      creditor, but who performs purely administrative or clerical tasks on behalf of a person who does
      engage in such activities. (B) An employee of a manufactured home retailer who does not take a consumer
      credit application, offer or negotiate credit terms available from a creditor, or advise a consumer
      on credit terms (including rates, fees, and other costs) available from a creditor. (C) A person
      that performs only real estate brokerage activities and is licensed or registered in accordance
      with applicable State law, unless such person is compensated by a creditor or loan originator or
      by any agent of such creditor or loan originator for a particular consumer credit transaction subject
      to this section. (D) A seller financer that meets the criteria in paragraph (a)(4) or (a)(5) of
      this section, as applicable. (E) A servicer or servicer''s employees, agents, and contractors who
      offer or negotiate terms for purposes of renegotiating, modifying, replacing, or subordinating principal
      of existing mortgages where consumers are behind in their payments, in default , or have a reasonable
      likelihood of defaulting or falling behind. This exception does not apply, however, to a servicer
      or servicer''s employees, agents, and contractors who offer or negotiate a transaction that constitutes
      a refinancing under § 1026.20(a) or obligates a different consumer on the existing debt . (ii) An
      “individual loan originator” is a natural person who meets the definition of “loan originator” in
      paragraph (a)(1)(i) of this section. (iii) A “loan originator organization” is any loan originator,
      as defined in paragraph (a)(1)(i) of this section, that is not an individual loan originator. (2)
      Mortgage broker. For purposes of this section, a mortgage broker with respect to a particular transaction
      is any loan originator that is not an employee of the creditor. (3) Compensation. The term “compensation”
      includes salaries, commissions, and any financial or similar incentive. (4) Seller financers; three
      properties. A person (as defined in § 1026.2(a)(22) ) that meets all of the following criteria is
      not a loan originator under paragraph (a)(1) of this section:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) The person provides seller financing for the sale of three or fewer properties
    in any 12-month period to purchasers of such properties, each of which is owned by the person and
    serves as security for the financing. (ii) The person has not constructed, or acted as a contractor
    for the constructio…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) The person provides seller financing for the sale of three or fewer properties
      in any 12-month period to purchasers of such properties, each of which is owned by the person and
      serves as security for the financing. (ii) The person has not constructed, or acted as a contractor
      for the construction of, a residence on the property in the ordinary course of business of the person
      . (iii) The person provides seller financing that meets the following requirements: (A) The financing
      is fully amortizing. (B) The financing is one that the person determines in good faith the consumer
      has a reasonable ability to repay. (C) The financing has a fixed rate or an adjustable rate that
      is adjustable after five or more years, subject to reasonable annual and lifetime limitations on
      interest rate increases. If the financing agreement has an adjustable rate, the rate is determined
      by the addition of a margin to an index rate and is subject to reasonable rate adjustment limitations.
      The index the adjustable rate is based on is a widely available index such as indices for U.S. Treasury
      securities or SOFR. (5) Seller financers; one property. A natural person , estate, or trust that
      meets all of the following criteria is not a loan originator under paragraph (a)(1) of this section:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) The natural person , estate, or trust provides seller financing for the sale
    of only one property in any 12-month period to purchasers of such property, which is owned by the
    natural person , estate, or trust and serves as security for the financing. (ii) The natural person
    , estate, or trust ha…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) The natural person , estate, or trust provides seller financing for the sale
      of only one property in any 12-month period to purchasers of such property, which is owned by the
      natural person , estate, or trust and serves as security for the financing. (ii) The natural person
      , estate, or trust has not constructed, or acted as a contractor for the construction of, a residence
      on the property in the ordinary course of business of the person . (iii) The natural person , estate,
      or trust provides seller financing that meets the following requirements: (A) The financing has
      a repayment schedule that does not result in negative amortization. (B) The financing has a fixed
      rate or an adjustable rate that is adjustable after five or more years, subject to reasonable annual
      and lifetime limitations on interest rate increases. If the financing agreement has an adjustable
      rate, the rate is determined by the addition of a margin to an index rate and is subject to reasonable
      rate adjustment limitations. The index the adjustable rate is based on is a widely available index
      such as indices for U.S. Treasury securities or SOFR. (6) Credit terms. For purposes of this section,
      the term “credit terms” includes rates, fees, and other costs. Credit terms are selected based on
      the consumer ''s financial characteristics when those terms are selected based on any factors that
      may influence a credit decision, such as debts, income, assets, or credit history.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-b
  canonical_id: reg-z-1026.36-b
  section: 12 CFR §1026.36(b)
  description: '(b): (b) Scope. Paragraphs (c)(1) and (2) of this section apply to closed-end consumer
    credit transactions secured by a consumer ''s principal dwelling . Paragraph (c)(3) of this section
    applies to a consumer credit transaction secured by a dwelling . Paragraphs (d) through (i) of this
    section apply to cl…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (b) Scope. Paragraphs (c)(1) and (2) of this section apply to closed-end consumer
      credit transactions secured by a consumer 's principal dwelling . Paragraph (c)(3) of this section
      applies to a consumer credit transaction secured by a dwelling . Paragraphs (d) through (i) of this
      section apply to closed-end consumer credit transactions secured by a dwelling . This section does
      not apply to a home equity line of credit subject to § 1026.40, except that paragraphs (h) and (i)
      of this section apply to such credit when secured by the consumer 's principal dwelling and paragraph
      (c)(3) applies to such credit when secured by a dwelling . Paragraphs (d) through (i) of this section
      do not apply to a loan that is secured by a consumer 's interest in a timeshare plan described in
      11 U.S.C. 101(53D) .
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-c
  canonical_id: reg-z-1026.36-c
  section: 12 CFR §1026.36(c)
  description: '(c): (c) Servicing practices. For purposes of this paragraph (c), the terms “servicer”
    and “servicing” have the same meanings as provided in 12 CFR 1024.2 (b). (1) Payment processing. In
    connection with a closed-end consumer credit transaction secured by a consumer ''s principal dwelling:'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(c) Servicing practices. For purposes of this paragraph (c), the terms “servicer”
      and “servicing” have the same meanings as provided in 12 CFR 1024.2 (b). (1) Payment processing.
      In connection with a closed-end consumer credit transaction secured by a consumer ''s principal
      dwelling:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) Periodic payments. No servicer shall fail to credit a periodic payment to the
    consumer ''s loan account as of the date of receipt, except when a delay in crediting does not result
    in any charge to the consumer or in the reporting of negative information to a consumer reporting
    agency, or except a…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) Periodic payments. No servicer shall fail to credit a periodic payment to the
      consumer ''s loan account as of the date of receipt, except when a delay in crediting does not result
      in any charge to the consumer or in the reporting of negative information to a consumer reporting
      agency, or except as provided in paragraph (c)(1)(iii) of this section. A periodic payment, as used
      in this paragraph (c), is an amount sufficient to cover principal, interest, and escrow (if applicable)
      for a given billing cycle . A payment qualifies as a periodic payment even if it does not include
      amounts required to cover late fees, other fees, or non-escrow payments a servicer has advanced
      on a consumer ''s behalf. (ii) Partial payments. Any servicer that retains a partial payment, meaning
      any payment less than a periodic payment, in a suspense or unapplied funds account shall: (A) Disclose
      to the consumer the total amount of funds held in such suspense or unapplied funds account on the
      periodic statement as required by § 1026.41(d)(3) , if a periodic statement is required; and (B)
      On accumulation of sufficient funds to cover a periodic payment in any suspense or unapplied funds
      account, treat such funds as a periodic payment received in accordance with paragraph (c)(1)(i)
      of this section. (iii) Non-conforming payments. If a servicer specifies in writing requirements
      for the consumer to follow in making payments, but accepts a payment that does not conform to the
      requirements, the servicer shall credit the payment as of five days after receipt. (2) No pyramiding
      of late fees. In connection with a closed-end consumer credit transaction secured by a consumer
      ''s principal dwelling , a servicer shall not impose any late fee or delinquency charge for a payment
      if:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) Such a fee or charge is attributable solely to failure of the consumer to pay
    a late fee or delinquency charge on an earlier payment; and (ii) The payment is otherwise a periodic
    payment received on the due date, or within any applicable courtesy period. (3) Payoff statements.
    In connection with…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (i) Such a fee or charge is attributable solely to failure of the consumer to pay
      a late fee or delinquency charge on an earlier payment; and (ii) The payment is otherwise a periodic
      payment received on the due date, or within any applicable courtesy period. (3) Payoff statements.
      In connection with a consumer credit transaction secured by a consumer 's dwelling , a creditor,
      assignee or servicer, as applicable, must provide an accurate statement of the total outstanding
      balance that would be required to pay the consumer 's obligation in full as of a specified date.
      The statement shall be sent within a reasonable time, but in no case more than seven business days
      , after receiving a written request from the consumer or any person acting on behalf of the consumer
      . When a creditor, assignee, or servicer, as applicable, is not able to provide the statement within
      seven business days of such a request because a loan is in bankruptcy or foreclosure, because the
      loan is a reverse mortgage or shared appreciation mortgage, or because of natural disasters or other
      similar circumstances, the payoff statement must be provided within a reasonable time. A creditor
      or assignee that does not currently own the mortgage loan or the mortgage servicing rights is not
      subject to the requirement in this paragraph (c)(3) to provide a payoff statement.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-d
  canonical_id: reg-z-1026.36-d
  section: 12 CFR §1026.36(d)
  description: '(d): (d) Prohibited payments to loan originators —(1) Payments based on a term of a transaction.'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (d) Prohibited payments to loan originators —(1) Payments based on a term of a transaction.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) Except as provided in paragraph (d)(1)(iii) or (iv) of this section, in connection
    with a consumer credit transaction secured by a dwelling , no loan originator shall receive and no
    person shall pay to a loan originator, directly or indirectly, compensation in an amount that is based
    on a term o…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) Except as provided in paragraph (d)(1)(iii) or (iv) of this section, in connection
      with a consumer credit transaction secured by a dwelling , no loan originator shall receive and
      no person shall pay to a loan originator, directly or indirectly, compensation in an amount that
      is based on a term of a transaction, the terms of multiple transactions by an individual loan originator,
      or the terms of multiple transactions by multiple individual loan originators. If a loan originator''s
      compensation is based in whole or in part on a factor that is a proxy for a term of a transaction,
      the loan originator''s compensation is based on a term of a transaction. A factor that is not itself
      a term of a transaction is a proxy for a term of the transaction if the factor consistently varies
      with that term over a significant number of transactions, and the loan originator has the ability,
      directly or indirectly, to add, drop, or change the factor in originating the transaction. (ii)
      For purposes of this paragraph (d)(1) only, a “term of a transaction” is any right or obligation
      of the parties to a credit transaction. The amount of credit extended is not a term of a transaction
      or a proxy for a term of a transaction, provided that compensation received by or paid to a loan
      originator, directly or indirectly, is based on a fixed percentage of the amount of credit extended;
      however, such compensation may be subject to a minimum or maximum dollar amount . (iii) An individual
      loan originator may receive, and a person may pay to an individual loan originator, compensation
      in the form of a contribution to a defined contribution plan that is a designated tax-advantaged
      plan or a benefit under a defined benefit plan that is a designated tax-advantaged plan. In the
      case of a contribution to a defined contribution plan, the contribution shall not be directly or
      indirectly based on the terms of that individual loan originator''s transactions. As used in this
      paragraph (d)(1)(iii), “designated tax-advantaged plan” means any plan that meets the requirements
      of Internal Revenue Code section 401(a), 26 U.S.C. 401(a) ; employee annuity plan described in Internal
      Revenue Code section 403(a), 26 U.S.C. 403(a) ; simple retirement account, as defined in Internal
      Revenue Code section 408(p), 26 U.S.C. 408(p) ; simplified employee pension described in Internal
      Revenue Code section 408(k), 26 U.S.C. 408(k) ; annuity contract described in Internal Revenue Code
      section 403(b), 26 U.S.C. 403(b) ; or eligible deferred compensation plan, as defined in Internal
      Revenue Code section 457(b), 26 U.S.C. 457(b) . (iv) An individual loan originator may receive,
      and a person may pay to an individual loan originator, compensation under a non-deferred profits-based
      compensation plan ( i.e., any arrangement for the payment of non-deferred compensation that is determined
      with reference to the profits of the person from mortgage-related business), provided that: (A)
      The compensation paid to an individual loan originator pursuant to this paragraph (d)(1)(iv) is
      not directly or indirectly based on the terms of that individual loan originator''s transactions
      that are subject to this paragraph (d); and (B) At least one of the following conditions is satisfied:
      (1) The compensation paid to an individual loan originator pursuant to this paragraph (d)(1)(iv)
      does not, in the aggregate, exceed 10 percent of the individual loan originator''s total compensation
      corresponding to the time period for which the compensation under the non-deferred profits-based
      compensation plan is paid; or (2) The individual loan originator was a loan originator for ten or
      fewer transactions subject to this paragraph (d) consummated during the 12-month period preceding
      the date of the compensation determination. (2) Payments by persons other than consumer —(i) Dual
      compensation. (A) Except as provided in paragraph (d)(2)(i)(C) of this section, if any loan originator
      receives compensation directly from a consumer in a consumer credit transaction secured by a dwelling:
      (1) No loan originator shall receive compensation, directly or indirectly, from any person other
      than the consumer in connection with the transaction; and (2) No person who knows or has reason
      to know of the consumer -paid compensation to the loan originator (other than the consumer) shall
      pay any compensation to a loan originator, directly or indirectly, in connection with the transaction.
      (B) Compensation received directly from a consumer includes payments to a loan originator made pursuant
      to an agreement between the consumer and a person other than the creditor or its affiliates, under
      which such other person agrees to provide funds toward the consumer ''s costs of the transaction
      (including loan originator compensation). (C) If a loan originator organization receives compensation
      directly from a consumer in connection with a transaction, the loan originator organization may
      pay compensation to an individual loan originator, and the individual loan originator may receive
      compensation from the loan originator organization, subject to paragraph (d)(1) of this section.
      (ii) Exemption. A payment to a loan originator that is otherwise prohibited by section 129B(c)(2)(A)
      of the Truth in Lending Act is nevertheless permitted pursuant to section 129B(c)(2)(B) of the Act,
      regardless of whether the consumer makes any upfront payment of discount points, origination points,
      or fees, as described in section 129B(c)(2)(B)(ii) of the Act, as long as the loan originator does
      not receive any compensation directly from the consumer as described in section 129B(c)(2)(B)(i)
      of the Act. (3) Affiliates. For purposes of this paragraph (d), affiliates shall be treated as a
      single “person.”'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-e
  canonical_id: reg-z-1026.36-e
  section: 12 CFR §1026.36(e)
  description: '(e): (e) Prohibition on steering —(1) General. In connection with a consumer credit transaction
    secured by a dwelling , a loan originator shall not direct or “steer” a consumer to consummate a transaction
    based on the fact that the originator will receive greater compensation from the creditor in that
    tr…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(e) Prohibition on steering —(1) General. In connection with a consumer credit transaction
      secured by a dwelling , a loan originator shall not direct or “steer” a consumer to consummate a
      transaction based on the fact that the originator will receive greater compensation from the creditor
      in that transaction than in other transactions the originator offered or could have offered to the
      consumer , unless the consummated transaction is in the consumer ''s interest. (2) Permissible transactions.
      A transaction does not violate paragraph (e)(1) of this section if the consumer is presented with
      loan options that meet the conditions in paragraph (e)(3) of this section for each type of transaction
      in which the consumer expressed an interest. For purposes of paragraph (e) of this section, the
      term “type of transaction” refers to whether:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) A loan has an annual percentage rate that cannot increase after consummation;
    (ii) A loan has an annual percentage rate that may increase after consummation; or (iii) A loan is
    a reverse mortgage. (3) Loan options presented. A transaction satisfies paragraph (e)(2) of this section
    only if the lo…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) A loan has an annual percentage rate that cannot increase after consummation;
      (ii) A loan has an annual percentage rate that may increase after consummation; or (iii) A loan
      is a reverse mortgage. (3) Loan options presented. A transaction satisfies paragraph (e)(2) of this
      section only if the loan originator presents the loan options required by that paragraph and all
      of the following conditions are met:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) The loan originator must obtain loan options from a significant number of the
    creditors with which the originator regularly does business and, for each type of transaction in which
    the consumer expressed an interest, must present the consumer with loan options that include: (A)
    The loan with the…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) The loan originator must obtain loan options from a significant number of the
      creditors with which the originator regularly does business and, for each type of transaction in
      which the consumer expressed an interest, must present the consumer with loan options that include:
      (A) The loan with the lowest interest rate; (B) The loan with the lowest interest rate without negative
      amortization, a prepayment penalty, interest-only payments, a balloon payment in the first 7 years
      of the life of the loan, a demand feature, shared equity, or shared appreciation; or, in the case
      of a reverse mortgage, a loan without a prepayment penalty, or shared equity or shared appreciation;
      and (C) The loan with the lowest total dollar amount of discount points, origination points or origination
      fees (or, if two or more loans have the same total dollar amount of discount points, origination
      points or origination fees, the loan with the lowest interest rate that has the lowest total dollar
      amount of discount points, origination points or origination fees). (ii) The loan originator must
      have a good faith belief that the options presented to the consumer pursuant to paragraph (e)(3)(i)
      of this section are loans for which the consumer likely qualifies. (iii) For each type of transaction,
      if the originator presents to the consumer more than three loans , the originator must highlight
      the loans that satisfy the criteria specified in paragraph (e)(3)(i) of this section. (4) Number
      of loan options presented. The loan originator can present fewer than three loans and satisfy paragraphs
      (e)(2) and (e)(3)(i) of this section if the loan(s) presented to the consumer satisfy the criteria
      of the options in paragraph (e)(3)(i) of this section and the provisions of paragraph (e)(3) of
      this section are otherwise met.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-f
  canonical_id: reg-z-1026.36-f
  section: 12 CFR §1026.36(f)
  description: '(f): (f) Loan originator qualification requirements. A loan originator for a consumer
    credit transaction secured by a dwelling must, when required by applicable State or Federal law, be
    registered and licensed in accordance with those laws, including the Secure and Fair Enforcement for
    Mortgage Licensing…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(f) Loan originator qualification requirements. A loan originator for a consumer
      credit transaction secured by a dwelling must, when required by applicable State or Federal law,
      be registered and licensed in accordance with those laws, including the Secure and Fair Enforcement
      for Mortgage Licensing Act of 2008 ( SAFE Act , 12 U.S.C. 5102 et seq. ), its implementing regulations
      ( 12 CFR part 1007 or part 1008), and State SAFE Act implementing law. To comply with this paragraph
      (f), a loan originator organization that is not a government agency or State housing finance agency
      must: (1) Comply with all applicable State law requirements for legal existence and foreign qualification;
      (2) Ensure that each individual loan originator who works for the loan originator organization is
      licensed or registered to the extent the individual is required to be licensed or registered under
      the SAFE Act , its implementing regulations, and State SAFE Act implementing law before the individual
      acts as a loan originator in a consumer credit transaction secured by a dwelling ; and (3) For each
      of its individual loan originator employees who is not required to be licensed and is not licensed
      as a loan originator pursuant to § 1008.103 of this chapter or State SAFE Act implementing law:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) Obtain for any individual whom the loan originator organization hired on or after
    January 1, 2014 (or whom the loan originator organization hired before this date but for whom there
    were no applicable statutory or regulatory background standards in effect at the time of hire or before
    January 1,…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) Obtain for any individual whom the loan originator organization hired on or
      after January 1, 2014 (or whom the loan originator organization hired before this date but for whom
      there were no applicable statutory or regulatory background standards in effect at the time of hire
      or before January 1, 2014, used to screen the individual) and for any individual regardless of when
      hired who, based on reliable information known to the loan originator organization, likely does
      not meet the standards under § 1026.36(f)(3)(ii) , before the individual acts as a loan originator
      in a consumer credit transaction secured by a dwelling: (A) A criminal background check through
      the Nationwide Mortgage Licensing System and Registry (NMLSR) or, in the case of an individual loan
      originator who is not a registered loan originator under the NMLSR, a criminal background check
      from a law enforcement agency or commercial service; (B) A credit report from a consumer reporting
      agency described in section 603(p) of the Fair Credit Reporting Act ( 15 U.S.C. 1681a(p) ) secured,
      where applicable, in compliance with the requirements of section 604(b) of the Fair Credit Reporting
      Act , 15 U.S.C. 1681b(b) ; and (C) Information from the NMLSR about any administrative, civil, or
      criminal findings by any government jurisdiction or, in the case of an individual loan originator
      who is not a registered loan originator under the NMLSR, such information from the individual loan
      originator; (ii) Determine on the basis of the information obtained pursuant to paragraph (f)(3)(i)
      of this section and any other information reasonably available to the loan originator organization,
      for any individual whom the loan originator organization hired on or after January 1, 2014 (or whom
      the loan originator organization hired before this date but for whom there were no applicable statutory
      or regulatory background standards in effect at the time of hire or before January 1, 2014, used
      to screen the individual) and for any individual regardless of when hired who, based on reliable
      information known to the loan originator organization, likely does not meet the standards under
      this paragraph (f)(3)(ii), before the individual acts as a loan originator in a consumer credit
      transaction secured by a dwelling , that the individual loan originator: (A) ( 1 ) Has not been
      convicted of, or pleaded guilty or nolo contendere to, a felony in a domestic or military court
      during the preceding seven-year period or, in the case of a felony involving an act of fraud, dishonesty,
      a breach of trust, or money laundering, at any time; (2) For purposes of this paragraph (f)(3)(ii)(A):'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) A crime is a felony only if at the time of conviction it was classified as a
    felony under the law of the jurisdiction under which the individual was convicted; (ii) Expunged convictions
    and pardoned convictions do not render an individual unqualified; and (iii) A conviction or plea of
    guilty or …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (i) A crime is a felony only if at the time of conviction it was classified as a
      felony under the law of the jurisdiction under which the individual was convicted; (ii) Expunged
      convictions and pardoned convictions do not render an individual unqualified; and (iii) A conviction
      or plea of guilty or nolo contendere does not render an individual unqualified under this § 1026.36(f)
      if the loan originator organization has obtained consent to employ the individual from the Federal
      Deposit Insurance Corporation (or the Board of Governors of the Federal Reserve System , as applicable)
      pursuant to section 19 of the Federal Deposit Insurance Act (FDIA), 12 U.S.C. 1829 , the National
      Credit Union Administration pursuant to section 205 of the Federal Credit Union Act (FCUA), 12 U.S.C.
      1785(d) , or the Farm Credit Administration pursuant to section 5.65(d) of the Farm Credit Act of
      1971 (FCA), 12 U.S.C. 227a-14(d) , notwithstanding the bars posed with respect to that conviction
      or plea by the FDIA, FCUA, and FCA, as applicable; and (B) Has demonstrated financial responsibility,
      character, and general fitness such as to warrant a determination that the individual loan originator
      will operate honestly, fairly, and efficiently; and (iii) Provide periodic training covering Federal
      and State law requirements that apply to the individual loan originator's loan origination activities.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-g
  canonical_id: reg-z-1026.36-g
  section: 12 CFR §1026.36(g)
  description: '(g): (g) Name and NMLSR ID on loan documents. (1) For a consumer credit transaction secured
    by a dwelling , a loan originator organization must include on the loan documents described in paragraph
    (g)(2) of this section, whenever each such loan document is provided to a consumer or presented to
    a consume…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(g) Name and NMLSR ID on loan documents. (1) For a consumer credit transaction secured
      by a dwelling , a loan originator organization must include on the loan documents described in paragraph
      (g)(2) of this section, whenever each such loan document is provided to a consumer or presented
      to a consumer for signature, as applicable:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) Its name and NMLSR ID, if the NMLSR has provided it an NMLSR ID; and (ii) The
    name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility
    for the origination and, if the NMLSR has provided such person an NMLSR ID, that NMLSR ID. (2) The
    loan documents th…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) Its name and NMLSR ID, if the NMLSR has provided it an NMLSR ID; and (ii) The
      name of the individual loan originator (as the name appears in the NMLSR) with primary responsibility
      for the origination and, if the NMLSR has provided such person an NMLSR ID, that NMLSR ID. (2) The
      loan documents that must include the names and NMLSR IDs pursuant to paragraph (g)(1) of this section
      are:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) The credit application; (ii) The disclosures required by § 1026.19 (e) and (f);
    (iii) The note or loan contract; and (iv) The security instrument. (3) For purposes of this section,
    NMLSR ID means a number assigned by the Nationwide Mortgage Licensing System and Registry to facilitate
    electronic …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (i) The credit application; (ii) The disclosures required by § 1026.19 (e) and (f);
      (iii) The note or loan contract; and (iv) The security instrument. (3) For purposes of this section,
      NMLSR ID means a number assigned by the Nationwide Mortgage Licensing System and Registry to facilitate
      electronic tracking and uniform identification of loan originators and public access to the employment
      history of, and the publicly adjudicated disciplinary and enforcement actions against, loan originators.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-h
  canonical_id: reg-z-1026.36-h
  section: 12 CFR §1026.36(h)
  description: '(h): (h) Prohibition on mandatory arbitration clauses and waivers of certain consumer
    rights —(1) Arbitration. A contract or other agreement for a consumer credit transaction secured by
    a dwelling (including a home equity line of credit secured by the consumer ''s principal dwelling)
    may not include terms…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (h) Prohibition on mandatory arbitration clauses and waivers of certain consumer
      rights —(1) Arbitration. A contract or other agreement for a consumer credit transaction secured
      by a dwelling (including a home equity line of credit secured by the consumer 's principal dwelling)
      may not include terms that require arbitration or any other non-judicial procedure to resolve any
      controversy or settle any claims arising out of the transaction. This prohibition does not limit
      a consumer and creditor or any assignee from agreeing, after a dispute or claim under the transaction
      arises, to settle or use arbitration or other non-judicial procedure to resolve that dispute or
      claim. (2) No waivers of Federal statutory causes of action. A contract or other agreement relating
      to a consumer credit transaction secured by a dwelling (including a home equity line of credit secured
      by the consumer 's principal dwelling) may not be applied or interpreted to bar a consumer from
      bringing a claim in court pursuant to any provision of law for damages or other relief in connection
      with any alleged violation of any Federal law. This prohibition does not limit a consumer and creditor
      or any assignee from agreeing, after a dispute or claim under the transaction arises, to settle
      or use arbitration or other non-judicial procedure to resolve that dispute or claim.
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) Prohibition on financing credit insurance. (1) A creditor may not finance, directly
    or indirectly, any premiums or fees for credit insurance in connection with a consumer credit transaction
    secured by a dwelling (including a home equity line of credit secured by the consumer ''s principal
    dwellin…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) Prohibition on financing credit insurance. (1) A creditor may not finance, directly
      or indirectly, any premiums or fees for credit insurance in connection with a consumer credit transaction
      secured by a dwelling (including a home equity line of credit secured by the consumer ''s principal
      dwelling). This prohibition does not apply to credit insurance for which premiums or fees are calculated
      and paid in full on a monthly basis. (2) For purposes of this paragraph (i):'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) “Credit insurance”: (A) Means credit life, credit disability, credit unemployment,
    or credit property insurance, or any other accident, loss-of-income, life, or health insurance, or
    any payments directly or indirectly for any debt cancellation or suspension agreement or contract,
    but (B) Exclude…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(i) “Credit insurance”: (A) Means credit life, credit disability, credit unemployment,
      or credit property insurance, or any other accident, loss-of-income, life, or health insurance,
      or any payments directly or indirectly for any debt cancellation or suspension agreement or contract,
      but (B) Excludes credit unemployment insurance for which the unemployment insurance premiums are
      reasonable, the creditor receives no direct or indirect compensation in connection with the unemployment
      insurance premiums, and the unemployment insurance premiums are paid pursuant to a separate insurance
      contract and are not paid to an affiliate of the creditor; (ii) A creditor finances premiums or
      fees for credit insurance if it provides a consumer the right to defer payment of a credit insurance
      premium or fee owed by the consumer beyond the monthly period in which the premium or fee is due;
      and (iii) Credit insurance premiums or fees are calculated on a monthly basis if they are determined
      mathematically by multiplying a rate by the actual monthly outstanding balance.'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-j
  canonical_id: reg-z-1026.36-j
  section: 12 CFR §1026.36(j)
  description: '(j): (j) Policies and procedures to ensure and monitor compliance. (1) A depository institution
    must establish and maintain written policies and procedures reasonably designed to ensure and monitor
    the compliance of the depository institution , its employees, its subsidiaries, and its subsidiaries''
    emplo…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (j) Policies and procedures to ensure and monitor compliance. (1) A depository institution
      must establish and maintain written policies and procedures reasonably designed to ensure and monitor
      the compliance of the depository institution , its employees, its subsidiaries, and its subsidiaries'
      employees with the requirements of paragraphs (d), (e), (f), and (g) of this section. These written
      policies and procedures must be appropriate to the nature, size, complexity, and scope of the mortgage
      lending activities of the depository institution and its subsidiaries. (2) For purposes of this
      paragraph (j), “depository institution” has the meaning in section 1503(3) of the SAFE Act , 12
      U.S.C. 5102(3) . For purposes of this paragraph (j), “subsidiary” has the meaning in section 3 of
      the Federal Deposit Insurance Act , 12 U.S.C. 1813 .
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-k
  canonical_id: reg-z-1026.36-k
  section: 12 CFR §1026.36(k)
  description: '(k): (k) Negative amortization counseling. (1) Counseling required. A creditor shall not
    extend credit to a first-time borrower in connection with a closed-end transaction secured by a dwelling
    , other than a reverse mortgage transaction subject to § 1026.33 or a transaction secured by a consumer
    ''s inte…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: '(k) Negative amortization counseling. (1) Counseling required. A creditor shall
      not extend credit to a first-time borrower in connection with a closed-end transaction secured by
      a dwelling , other than a reverse mortgage transaction subject to § 1026.33 or a transaction secured
      by a consumer ''s interest in a timeshare plan described in 11 U.S.C. 101(53D) , that may result
      in negative amortization, unless the creditor receives documentation that the consumer has obtained
      homeownership counseling from a counseling organization or counselor certified or approved by the
      U.S. Department of Housing and Urban Development to provide such counseling. (2) Definitions. For
      the purposes of this paragraph (k), the following definitions apply:'
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.36-i
  canonical_id: reg-z-1026.36-i
  section: 12 CFR §1026.36(i)
  description: '(i): (i) A “first-time borrower” means a consumer who has not previously received a closed-end
    credit transaction or open-end credit plan secured by a dwelling . (ii) “Negative amortization” means
    a payment schedule with regular periodic payments that cause the principal balance to increase. (3)
    Steering…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.36(a)(1)(i)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.36
    snapshot_id: 4bd6b34185a9e75f
    fetched_at: '2026-05-22T18:22:27Z'
    content_hash: sha256:053be4bcfe7698284cc954f2558b25e7fa37eb10ea326a9839a23c43269c115a
    paragraph_quote: (i) A “first-time borrower” means a consumer who has not previously received a closed-end
      credit transaction or open-end credit plan secured by a dwelling . (ii) “Negative amortization”
      means a payment schedule with regular periodic payments that cause the principal balance to increase.
      (3) Steering prohibited. A creditor that extends credit to a first-time borrower in connection with
      a closed-end transaction secured by a dwelling , other than a reverse mortgage transaction subject
      to § 1026.33 or a transaction secured by a consumer 's interest in a timeshare plan described in
      11 U.S.C. 101(53D) , that may result in negative amortization shall not steer or otherwise direct
      a consumer to choose a particular counselor or counseling organization for the counseling required
      under this paragraph (k). [ 76 FR 79772 , Dec. 22, 2011, as amended at 78 FR 6966 , Jan. 31, 2013;
      78 FR 11006 , Feb. 14, 2013; 78 FR 11410 , Feb. 15, 2013; 78 FR 60441 , Oct. 1, 2013; 80 FR 8776
      , Feb. 19, 2015; 81 FR 72388 , Oct. 19, 2016; 86 FR 69781 , Dec. 8, 2021] Internal Revenue Code
      Truth in Lending Act Secure and Fair Enforcement for Mortgage Licensing Act of 2008 SAFE Act Fair
      Credit Reporting Act Federal Deposit Insurance Act Federal Credit Union Act Farm Credit Act of 1971
      CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities
      Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1026.36 from Cornell LII snapshot 4bd6b34185a9e75f;
      body isolated between nav and notes; substring-verified.
  judgment: false
