Government/Federal Laws Flashcards
Settlement costs and you
Respa
Given to borrower within 3 Bussiness days from time that person revives or prepares a loan application
RESPA
Real Estate Settlement Procedures Act
Requires the disclosure of settlement costs
Lenders cannot charge fee for preparation of settlement statement
Good faith estimate
GFE
3 days of loan application
Settlement costs the borrower will likely incur.
Respa (certain contracts)
Not apply to land contracts,
Purchase money mortgage,
When seller is financing the property,
Lender charges less than $50 for assumption
Regulation Z
Truth-in-lending act
Requires that lenders disclose the true cost of credit expressed as APR
Doesn’t have to reveal title fees
Reg. Z
Coverage
Covers all 1-4 family real estate financing for residential borrowers.
Not)! Loans used for commercial, Bussiness, or agricultural. Personal property credit teams over 25,000
Reg. Z
Mandating
When getting home improvement loan, refinancing home loan or home equity loan, has 3 day Right of recission
Reg. Z define creditor as:
Person or institution that extends credit more than 25times a year or more than 5 time a year that includes a dwelling
Sherman antitrust laws
Prohibit price fixing,
group boycotting,
allocation of customers and markets , tie-in agreements
Under Sherman laws:
Allocate
Brokers may not allocate customers or markets by dividing the community into geographic areas and then agree not to compete.
Brokers also may not divide the market by price range or type of properties
Under Sherman antitrust laws:
Tie-in agreements
Brokers cannot tie or agree to sell one product based on purchase of another product
Equal credit opportunity act
Prohibits discrimination Race Religion Orgin Sex Loan consideration is based on income, net worth, job stability, and credit rating
Lenders credit rejection time?
30 days to inform
Community’s reinvestment act
Prevent redlining- lenders refusal to give loan in certain area
