WHAT ARE MY RIGHTS AS A
BORROWER?
BACKGROUND
Throughout most of history,
the concept of homeownership has been one of great importance, shared by nearly
all the people of the world. Because of the value that individuals, like you,
place on homeownership, there are many laws existing to support this
concept.
Laws and regulations were created to protect your rights as a
borrower in quest for homeownership. As your Mortgage Consultants, we feel it is
imprtant that you are aware of your rights. We want you to know that we are
working in your best interest to keep you informed.
Following are
explanations in simple terms of the various laws and regulations that protect
your rights. As your Mortgage Consultants, we will be more than happy to answer
any questions and explain them in greater detail if needed.
EQUAL CREDIT OPPORTUNITY ACT (Regulation
B)
This regulation was created so that all
creditworthy applicants would have credit available to them without regard to
race, color, religion, national origin, sex, marital status, or age; whether an
applicant's income, either all or in part, is derived from public assistance; or
whether an applicant has exercised any right in good faith under the Consumer
Credit Protection Act. The regulation prohibits any acts by creditors that would
discriminate on the basis of any of these factors. This regulation also
establishes your rights to be notified by the creditor of any actions taken on
your application.
HOME MORTGAGE DISCLOSURE ACT (HMDA)
(Regulation C)
This regulation is intended to
provide the public with information on lending practices which can be used to
help determine whether financial institutions are meeting the housing needs of
their communities; whether they are investing public money into communities to
attract private investments where needed; and to discourage unsound and
discriminatory lending practices.
FAIR CREDIT REPORTING
ACT
The purpose of this act is to ensure that credit
reporting agencies use fair, accurate, and confidential reporting methods. This
protects consumers against unfair and inaccurate credit billing. If your loan is
denied due to your credit status, the credit reporting agency must supply you,
upon your request, with the information upon which the denial was based.
REAL ESTATE SETTLEMENT PROCEDURES ACT
(RESPA)
This act is intended to ensure that
consumers throughout the country are provided with greater and more timely
information on the nature of the costs associated with obtaining a mortgage
loan. As a result of this fact, federal regulations require that, within three
(3) days of your initial loan application, you receive a disclosure of estimated
settlement costs on what is known as a "Good Faith Estimate". RESPA was also
created to eliminate kickbacks and referral fees that might increase settlement
costs to the borrower due to unnecessary settlement services. In addition, it is
intended to regulate the amount of money borrowers are required to place in
escrow accounts for real estate taxes and insurances.
TRUTH IN LENDING ACT (Regulation
Z)
This act requires creditors to disclose
information to consumers about the conditions, terms, and costs of a mortgage
loan. The regulation also ensures the right of a consumer to cancel some credit
transactions involving a lien on the consumer's principal residence. The intent
of this act is to help you better understand loan transactions, and to assist
you in comparing loans offered by different lending institutions through use of
common terminology such as "annnual percentage rate" (APR), and "finance charge"
to name a few.
STATE
DISCLOSURES
CARDINAL MORTGAGE CORP.
www.cardinalconnect.com
1025 Westchester Avenue, White Plains, NY 10604
Phone: 914-684-2200 / Fax: 914-684-2525 / Toll Free:
888-970-2200
Registered Mortgage Brokers - NY, NJ & CT State Banking
Departments
Financing via Third Party Providers
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