Section 7 Real Estate Settlement Procedures Act of 1974

• Library: Home Purchases, Ownership, and Financing 2011

The disclosures mandated by TILA and RESPA (Real Estate Settlement Procedures Act of 1974), 12 U.S.C. §§ 2601 et seq., help borrowers steer clear of predatory home improvement loans.

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RESPA requires that mortgage brokers and lenders provide borrowers with a GFE (Good Faith Estimate) of settlement, listing all of the estimated charges to be paid at closing. 12 U.S.C. § 2603. The GFE is available at:

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If the borrower is purchasing a home, the lender or mortgage broker must also provide:

· a HUD (U.S. Department of Housing and Urban Development) special information booklet that contains information on real estate settlement services, see 12 U.S.C. § 2604;

· a mortgage servicing disclosure statement that discloses whether the lender intends to transfer the loan, see 12 U.S.C. § 2605(a); and

· information regarding complaint resolution.

These disclosures must be provided at the time of the loan application or mailed to the...