Research on Real Estate Settlement Practices and Costs: Baseline Study of Mortgage Lending Industry

摘要

The report profiles the historical development, current characteristics, and future prospects of the mortgage lending industry. It contains a historical account of the Federal Government's role in the expansion of the mortgage lending industry and homeownership through legislation to protect and inform buyers and borrowers. The impact such legislation has and will have on credit markets and the local economy is discussed. The report describes the mortgage process, the major lending institutions, and the divergent types of residential lending activities in which they engage. It also looks at the increased compliance responsibilities placed on lenders by State and Federal legislation and their impact on the cost of services to buyers and borrowers. It examines competitive trends in the mortgage lending industry and anticipates eventual standardization and reductions in operating costs. Appendices outline conflicts between State statutes and the Real Estate Settlement Procedures Act of 1974 (RESPA), present lending statistics, and discuss tax treatment for savings and loans.