3 Major mortgage laws you must know
It is imperative to know about mortgage laws when you are thinking of taking mortgage loans from the lenders. The US government has introduced mortgage laws in order to monitor the mortgage lending process. A through knowledge on mortgage law will enable you to understand the mortgage lending process in a better manner. This article highlights 3 mortgage laws that you must know.
Mortgage laws
The 3 major mortgage laws are given below:
1. Truth in Lending Act: This mortgage law came into effect in 1968. This mortgage law specifies that the lenders should provide some disclosures to the borrowers. The lenders are required to provide the following disclosures – annual percentage rate, finance charge, total sales cost and total payments.
2. Real Estate Settlement Procedures Act: According to this mortgage law, the borrowers have the legal right to get some disclosures from the mortgage lenders. When borrowers are applying for mortgage loans, they are entitled to get Good Faith Estimate from the lenders. Basically, borrowers are entitled to get disclosures at various stages of mortgage loan process.
3. Home Mortgage Disclosure Act: This Act was passed in 1975. According to this Act, lenders must give public loan facts and figures on mortgage loans.
Finally, you should also know about New Homeowner’s Protection Act. This mortgage law is applicable to those mortgage loans that have been issued on or after 29th July, 1999.