Home Buyer’s Reference

This article gives you an overview of some important rights you have as a home buyer.

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.