Section 7 Real Estate Settlement Procedures Act of 1974

• Library: Consumer Law and Practice 2010

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.

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:

www.hud.gov/content/releases/goodfaithestimate.pdf

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...