Disclosures in Financing 12

Real Estate Settlement Procedures Act (continued)

In all non-federally related brokered loans and in all Article 7 loans under california law (with first trust deeds of less than $30,000.00 , whether they are federally related or not); mortgage brokers are STILL required to provide the California Mortgage Loan Disclosure Statement to the borrower.

Equal Credit Oppurtunity Act

Credit is used by millions of consumers daily to finance an education or a house, remodel a home or get a small business loan. The Equal Credit Oppurtunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. It is important to understand that this doesnt mean that all consumers who apply for credit will get it because factors such as income, expenses, debt, and credit history are considerations for creditworthiness. The law protects a borrower when dealing with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies and credit unions. ANYONE involved in granting credit, such as real estate brokers who arrange fianncing, is covered by the law. Businesses applying for credit are also protected by the law.

Have any of you seen any ECOA or RESPA violations in your careers as real estate professionals?