The Real Estate Settlement Procedures Act was put into place to protect consumers by requiring mortgage lenders, services and brokers to be transparent regarding the nature and costs as it pertains to the purchase of real estate. When borrowers are faced with foreclosure, is important to ascertain if lenders were in violation of RESPA. It requires that:
- Borrowers receive frequent updates about associated costs with the settlement and accurate descriptions of business relationships between settlement providers.
- Mortgage providers refrain from fee splitting and receiving payment on services not actually performed.
- Loan providers do not engage in any activities that will increase settlement service costs.
- Lenders do not require buyers to purchase title insurance from any particular company as a condition of the sale.
- Lenders respond in a timely fashion when borrowers request information about mortgage agreements.
If you feel that that your loan provider is in violation of RESPA, please contact an attorney as soon as possible, as you may be entitled to claim damages. The borrower may recover:
- Any actual damages suffered.
- Attorneys fees and costs.
It is important to note that the act will not prohibit the lender from either initiating or moving forward with a foreclosure. To find about more about RESPA, please contact an attorney on 888-433-8444.