Homebuyer’s References
This section gives you an overview of some important rights you have as a
homebuyer:
- Consumer Credit Protection Act (1960) – Guarantees
confidentiality of credit reports and allows consumers to correct inaccurate
information in their reports. - Equal Credit Opportunity Act of 1975 (ECOA) – Prohibits
the discrimination in any credit action based on race, sex, marital status,
color, religion, age, handicap, or national origin. - Equal Housing Opportunity – Prohibits housing
discrimination based on race, sex, marital status, color, religion, age,
handicap, family status or national origin. - Fair Housing Act – Prohibits the discrimination based
on race, sex, marital status, handicap, or national origin in any real
estate transaction. - Federal Consumer Credit Protection Act (commonly known as the
Truth in Lending Act) (1969) – Requires that lenders disclose the
actual terms and conditions of a loan before an applicant commits to the
loan. - Home Mortgage Disclosure Act (1975) – Provides
information to help determine whether public institutions are assisting the
housing needs of their communities and neighborhoods. - Real Estate Settlement Procedures Act of 1974 (RESPA) –
Encouraging homeownership through consumer protection, this act regulates
certain lending actions related to closing/settlement. Some of its
provisions are:
RESPA requires lenders to provide buyers a good faith estimate of the
cost of the loan,
including disclosure of the Annual Percentage Rate (APR).
RESPA requires lenders to provide buyers with general information about
settlement costs.
Lenders must provide buyers a copy of the Mortgage Servicing Disclosure
Statement,
regarding loan servicing and transfer.
Within three days after receiving the loan application, lenders must
provide the buyer with an
estimate of closing costs and monthly payments.
RESPA provides the borrower the opportunity to see the HUD-1 Settlement
Statement one day
before the actual settlement.
Prohibits kickbacks between Real Estate professionals for referrals and
prohibits fee-splitting
and receiving unearned fees for services not rendered. - Regulation B of the Consumer Credit Protection Act –
Requires lenders to inform potential borrowers of any adverse actions taken
on their loan applications. - Regulation Z – Includes regulations related to consumer
credit disclosures identified in the Consumer Credit Protection Act. - Veterans Housing Benefits Act (1978) – Increases the
housing benefits for eligible veterans including increased loan amounts. -
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