Real Estate Settlement Procedures Act: Statute, Regulations, Special Information Booklet

摘要

This volume presents the text of the Real Estate Settlement Procedures Act of 1974 as amended in 1975, the implementing regulations issued by HUD, and the HUD information booklet explaining to consumers the procedures involved in the settlement process and their rights under the law. The law is designed to protect buyers of real estate by providing them with information and enabling them to shop for settlement services and make informed decisions. The law covers most residential mortgage loans used to finance the purchase of one - family to four - family properties, such as houses, condominium or cooperative apartment units, lots with mobile homes, or vacant lots suitable for a mobile home or a new house. The law requires lenders to provide borrowers, at the time of loan application, good faith estimates of settlement costs. Persons conducting settlement are required to provide borrowers with a chance to inspect their settlement statements 1 day prior to settlement. The implementing regulations define the coverage and scope of the law, the required provision of the HUD information booklet at the time of settlement, the use of the uniform settlement statement form, the inspection process, and the prohibition against kickbacks and unearned fees. The consumer advice book covers the role of the broker, the process of negotiating a sales contract, the selection of an attorney and lender, and the choice of a settlement agent. The advice also covers the homebuyer's rights with respect to such matters as the disclosure of settlement costs, protection against unfair practices, and the homebuyer's obligation regarding repayment of the loan and maintenance of the home. The manual also includes forms, worksheets, and a list of 26 references.