Home Buyer's Right

The following information is here to protect your rights as a homebuyer. It is advised that you read it carefully and familiarize yourself with these acts as all this is here to benefit you and put you at an advantage:

Consumer Credit Protection Act (1960) - Guarantees discretion of credit reports and permits customers to correct erroneous information in their reports.

Equal Credit Opportunity Act of 1975 (ECOA) - Is an act that forbids the discrimination in any credit action based on race, sex, marital status, color, religious affiliation, age, mental/physical handicap, or national origin.

Equal Housing Opportunity - Forbids housing prejudice based on race, sex, marital status, color, religious affiliation, age, mental/physical handicap, family status or national origin.

Fair Housing Act - Prohibits the discrimination based on race, sex, marital status, religious affiliation, mental/physical handicap, or national origin in any real estate operation.

Federal Consumer Credit Protection Act (commonly known as the Truth in Lending Act) (1969) - Obligates the lender to reveal the actual terms and conditions of a loan before an applicant signs the loan.

Home Mortgage Disclosure Act (1975) - Makes available any information that would help establish whether public institutions are supporting the housing requirements of their neighborhoods and communities.

Real Estate Settlement Procedures Act of 1974 (RESPA) - Encourages homeownership through consumer protection, this act places regulations on some lending actions that are related to closing settlements. Some of its conditions are:

RESPA requires lenders to provide buyers with a good, fair estimate of the cost of the loan, including disclosing the Annual Percentage Rate.

RESPA also requires lenders to provide buyers with a wide range of information about settlement costs. Lenders have to give the buyers a copy of the Mortgage Servicing Disclosure Statement, concerning loan servicing and transfers.

The lenders have up to three days of the buyer receiving the loan application to give that buyer an estimate of closing costs and the monthly payments.

RESPA disallows kickbacks between Real Estate professionals for referrals and prohibits fee-splitting and receiving undeserved fees for services not provided.

Regulation B of the Consumer Credit Protection Act - Obligates the lenders to notify possible borrowers of any unfavorable actions that are taken on their loan applications.

Regulation Z - Includes information on any regulations that are relevant to consumer credit disclosures, which are discussed in the Consumer Credit Protection Act.

Veterans Housing Benefits Act (1978) - Enhances the housing benefits for eligible veterans, which also include increased loan amounts.