Lenders and settlement companies are required to give borrowers certain disclosures about theirrnloan fees and closing costs at various stages of the loan proceedings. The Real Estate SettlementrnAct (RESPA) was enacted to enforce federal and state regulations regarding lending practicesrnand to make sure that borrowers were treated fairly and not victimized by unscrupulous lenders,rnmortgage brokers, title companies and real estate settlement companies. Mainly the Act protectsrnborrowers against kick backs and fee splitting arrangements that may occur between real estaternprofessional and lenders. It also protects borrowers from lenders and sellers insisting that theyrnuse a certain title company to purchase their title insurance as part of the transaction terms.rnRequired Disclosure InformationrnRESPA laws require the lender and settlement company to provide the borrower with a goodrnfaith estimate (GFE) within three days after they apply for their loan. The estimate can also bernmailed within three days to the borrower. The GFE must set forth the costs of the loan and otherrnclosing costs. At least one before closing the borrower is entitled to request the HUD1 closingrnstatement which is a complete list of all closing costs. The borrower should compare the costs tornmake sure that certain items have not been changed such as the loan origination fees, points afterrnlocking the interest rate, transfer taxes, title costs, and the owner and the lender's title policy feesrnwhen the borrower elects its own service providers.rnHiring a RESPA AttorneyrnHiring a real estate RESPA attorney is recommended because most borrowers are unaware of thernRESPA and other settlement and loan laws and regulations. The attorney can assist the borrowerrnwith obtaining their loan, reviewing loan documents before the loan closes or after therntransaction has taken place to make sure the lender, title company and settlement agent haverncomplied with RESPA, TILA and other lending practices and disclosure laws. The RESPArnattorney works with clients to ensure they understand the complicated mortgage and RESPArnlaws and to protect clients against unscrupulous lenders and real estate professionals takingrnadvantage of them. The attorney assists their clients at all stages of the loan process. Even if yournhave already obtained the loan, the attorney can conduct a forensic audit of your loan documentsrnto search for irregularities and violations committed by your lender or real estate settlementrncompany. If the attorney discovers a violation, it can be used as a bargaining chip to assist yournwith getting your lender to give you a loan modification or to stop foreclosure proceedingsrnagainst you, depending on your current circumstances and whether you are in default on yourrnmortgage. Lenders face millions of dollars in fines and penalties if they violate the RESPA lawsrnso they would prefer to work with you than have your file a lawsuit against them.rnRecognizing whether or not you have been a victim of predatory loan practices should be left Irnthe hands of a trained and skilled RESPA real estate attorney. At the LAW OFFICES OF ALG &rnASSOCIATES, our team of experienced attorneys can assist you with all your real estate needs.rnFor a free consultation and advice regarding RESPA laws and other real estate matters, pleaserncontact us today AT
www.lawofficesofalg.com