At , our mission is to set a high standard
in the mortgage industry. We are committed to quality, personal
customer service, we always put the people we serve first. We
adhere to the highest degree of integrity in all of our business
dealings. We are a small, family based company who treats each
and every one of our clients like a person, not a number.
At , you can
always count on:
Fast Approvals
We use our top of the line technology to cut down on processing
time and can often give you a pre-approval within hours.
Free Pre-Qualifications and Consultations
Let us help you find the perfect program for you! We have a
variety of programs that are designed to help you, no matter
what your situation is!
|
Real Estate Settlement Procedures Act
This law protects consumers from abuses during the residential
real estate purchase and loan process and enables them to be
better informed shoppers by requiring disclosure of costs of
settlement services.
The U.S. Department of Housing and Urban
Development’s
(HUD) Federal Housing Administration (FHA) administers several
regulatory programs to ensure equity and efficiency in the
sale of housing. One of these programs, under the Real Estate
Settlement Procedures Act (RESPA), applies to almost all mortgage
loans and mortgage companies, not just FHA-insured mortgages.
RESPA’s purposes are (1) to help consumers get fair settlement
services by requiring that key service costs be disclosed in
advance, (2) to protect consumers by eliminating kickbacks
and referral fees that would unnecessarily increase the costs
of settlement services, and (3) to further protect consumers
by prohibiting certain practices that increase the cost of
settlement services.
RESPA protects consumers by mandating a series of disclosures
that prevent unethical practices by mortgage companies and
that provide consumers with the information to choose the real
estate settlement services most suited to their needs. The
disclosures must take place at various times throughout the
settlement process:
- Disclosures at the time of loan application. When a potential
homebuyer applies for a mortgage loan, the buyer must receive
(1) a Special Information Booklet, which contains consumer
information on various real estate settlement services; (2)
a Good Faith Estimate of settlement costs, which lists the
charges the buyer is likely to pay at settlement and states
whether the buyer is required to use a particular settlement
service; and (3) a Mortgage Servicing Disclosure Statement,
which tells the buyer whether the loan will be kept or transferred
for servicing, and also gives information about how the buyer
can resolve complaints. RESPA does not specify penalties when
these three items are not provided, but bank regulators can
impose penalties.
- Disclosures before settlement (closing)
occurs. (1) An Affiliated Business Arrangement Disclosure
is required
whenever a settlement
service refers a buyer to a firm with which the service
has any kind of business connection, such as common
ownership.
The service usually cannot require the buyer to use
a connected firm. (2) A preliminary copy of a HUD-1 Settlement
Statement
is required if the borrower requests it 24 hours before
closing. This form gives estimates of all settlement
charges that will
need to be paid, both by buyer and seller.
- Disclosures at settlement. (1) The HUD-1
Settlement Statement is required to show the actual charges
at settlement.
(2) An Initial Escrow Statement is required at
closing or within 45
days of closing. This itemizes the estimated taxes,
insurance premiums, and other charges that will need to be
paid
from the escrow account during the first year of
the loan.
- Disclosures after settlement. (1) An
Annual Escrow Loan
Statement must be delivered by the servicer to
the borrower. This statement
summarizes all escrow account deposits and payments
during the past year. It also notifies the borrower of
any shortages
or surpluses in the account and tells the borrower
how these can be paid or refunded. (2) A Servicing Transfer
Statement
is required if the servicer transfers the servicing
rights
for a loan to another servicer.
- Along with these
disclosures, RESPA protects consumers by prohibiting several
other practices:
(1) Kickbacks,
fee-splitting, and
unearned fees: Anyone is prohibited from giving
or accepting a fee, kickback, or any thing
of value in exchange for
referrals of settlement service business involving
a federally related
mortgage loan, which covers almost every loan
made for residential property. RESPA also prohibits
fee-splitting
and receiving
unearned fees for services not actually performed.
Violations of these RESPA provisions can be
punished with criminal
and civil penalties. (2) Seller-required title
insurance: A seller
is prohibited from requiring a homebuyer to
use a particular title insurance company. A buyer
can sue a seller who
violates this provision. (3) Limits on escrow
accounts: A limit is set
on the amount that a borrower is required to
put into an escrow account to pay taxes, hazard
insurance, and
other property
charges. RESPA does not require an escrow account
on borrowers, but some government loan programs
or mortgage
companies may
require an escrow account. During the course
of the loan, RESPA prohibits charging excessive
amounts for the escrow
account.
And each year, the borrower must be notified
of any escrow account shortage and return any
excess of $50 or more.
Apply today to
let Bancplus Home Mortgage Center help you get the great
financing you want
and deserve!
|
