In which federal law would you find the definition of a nontraditional loan?

The definition of a nontraditional loan can be found within the context of the SAFE Act. This law was established to enhance consumer protection and ensure that mortgage professionals operate with a high standard of ethics and practices. Nontraditional loans, which include options like interest-only loans and other variations that do not conform to typical lending standards, fall under the guidelines set forth in the SAFE Act as it pertains to mortgage loan originators and their practices.

The SAFE Act aims to regulate the mortgage industry and establish a foundation for professionalism among those involved in lending, thereby making it relevant when discussing the definitions and categories of loans. This context makes it clear how nontraditional loans fit into the broader regulatory framework.

The other laws mentioned have their specific purposes; for example, HOEPA focuses on high-cost mortgage loans, RESPA pertains to settlement services and the disclosure of costs associated with residential real estate transactions, and TILA deals primarily with disclosure of credit terms and consumer protections related to credit. None of these laws specifically define nontraditional loans in the manner that the SAFE Act does.