January 21, 2010|Cynthia Saylor|Mortgages/Economy/Market
Hidden fees, bait-and-switch tactics, misrepresentation, non-disclosure. These unethical lending tactics (as well as discrimination, predatory lending practices and, of course, old-fashioned, straight-up fraud) are pitfalls that may derail a well-intentioned buyer's effort to successfully obtain a loan for a new home.
To protect buyers from these types of practices, laws exist that require lenders to provide very specific information to loan applicants early in the application process. You may have noticed recent headlines announcing changes to some of these rules, so we want to take a closer look at what you should expect--and what you should watch out for--if you are starting the process of shopping for a loan.
First, the Background
What is RESPA? The Real Estate Settlement Procedures Act was passed in 1974. The purpose of RESPA is to help consumers make the best possible decisions about the loans they choose... Read More
Tagsborrower rights, buyers, closing costs, GFE, Good Faith Estimate, lending, loan application, mortgage, predatory lending, RESPA