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Federal regulation and consumer protection
The civil rights act of 18 six provides that ?all citizens of the United States shall have the same right, in every state and territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sale, hold, and convey real and personal property. ?The act specifically prohibits any discrimination based on race or ancestry.
Federal fair housing act. If with this law, Congress broadened the protection of the civil rights act of 1866. The federal fair housing act makes it illegal to discriminate on the basis of race, color, religion, sex, national origin, or handicapped, or against families with children, in the sale or lease of residential property or in the sale or lease of vacant land for the construction of residential buildings.
Equal credit opportunity act. The equal credit opportunity act is a federal law prohibiting those who lent money from discriminating against borrowers based on their race, sex, color, religion, handicap, national origin, age, or marital status. The law has several provisions that attempt to remove discrimination in the process and provide regulatory oversight of lender's efforts to be nondiscriminatory in the lending process. Lenders are required to notify loan applicants within 30 days of the decision as to whether or not to extend credit. If credit is the night, the lender must state the reason for the denial in writing to the borrower.
Home mortgage disclosure act. The home mortgage disclosure act created in 1975 was specifically passed by Congress to deal with the problem of redlining. Redlining is the practice by lenders of refusing to make loans in certain neighborhoods based on neighborhood decline that is attributed to racial composition or a perception of higher crime rates.
Community reinvestment act. The community reinvestment act created in 1978 was passed to make all federally regulated institutions responsive to the needs of the communities by requiring them to publicize how will they were serving their local communities. The institution must post a notice in all its place of business to notify the public who is regulated by and that the public is invited to comment on its practices and any appropriate hearing. This report is called a community support statement. The community support statement is a report to the federally regulated institutions regulators that details exactly how well the institution serves its community.
Financial institutions Reform, recovery and enforcement act (FIRREA). Was created in 1989 as a response to the failure of the savings and loan industry in the 1980s. The and includes all mortgage lenders, including the primary and secondary market, who are not affiliated with depository institutions, as well as mortgage brokers and appraisers. Under the act, lenders are evaluate publicly on how well they meet a communities lending needs.
Real estate settlement procedures act (RESPA). The real estate of the settlement procedures act was created in 1970 or to protect consumers from abusive practices by lenders. For many consumers, purchase is one of the most confusing transaction that they will undertake in a lifetime. The settlement charges on alone seem endless. Among the charges are, fees for credit report, appraisal, termite inspection, title search and insurance, escrow, recording and transfer fees, taxes, prepaid interest, and other lender fees known as garbage fees. The question arises, how is the consumer to know if these are valid or when its consumer overcharged. Congress asked the same question in came up with real is the settlement procedure act which requires all lenders to provide free disclosure statements to the borrower. A hut booklet that explains the loan settlement process, a good faith estimate of all settlement charges, a uniform settlement statement prior to close of escrow.
Consumer credit protection act. The consumer credit protection act of 1968 is also called the truth in lending act. The Federal Reserve Board of governors issued regulations Z to implement the act. Regulations he requires that the lender provide the consumer with a total of all finance charges and annual percentage rate (APR) of the loan. The disclosure must be in writing within three business days of the time to lender receives duplication. Now days is much faster process as lender can even fax the information on attach it in e-mail. Finance charges include interest charges, discount points, appraisal fees, inspection fees, origination fees, and any credit life or mortgage interest fees. The annual percentage rate (APR) is the effective yield on the loan. It'll be hard to the quoted loan rate if upfront charges, such as origination fees and discount points are included. |