RESPA Laws - There to Protect You!

[ghoeyw...@yahoo.com]

It's all about Closing Costs and Settlement Procedures!
RESPA (Real Estate Settlement Procedures Act) was enacted in 1974 to
provide consumers with advance disclosures of settlement charges and
to prohibit illegal kickbacks and excessive fess in connection with
their mortgage loan. Lenders have three (3) days to provide you with
this information.
The purpose is two-fold:

To provide consumers with information about their real estate mortgage
transaction and the costs associated with it.
To prohibit certain practices, such as referral fees between
settlement service providers, that result in higher costs and reduced
quality to consumers.

Lenders must disclose the following at the time of loan
application...or within 3 days:

An information booklet, which contains consumer information regarding
various real estate settlement costs.
A good faith estimate of settlement costs, which lists the charges
they will be likely to pay at settlement. This is only an estimate, so
the actual charges may differ somewhat. ...

http://groups.google.com/group/szdrealestatel