As a new homebuyer, you are embarking on an exciting adventure. However, no one wants to be taken advantage of. The U.S. Federal Government has passed a number of laws to protect you from unscrupulous practices.
The Fair Housing Act
The Fair Housing Act was passed in 1968 in order to outlaw discrimination against a buyer or renter based on race, religion, national origin, or gender. A potential buyer who is qualified may find that he or she is refused the right to purchase, and can file a complaint with the Fair Housing and Equal Opportunity Office, with a non-profit organization, or in federal court.
The Homeowner’s Protection Act
The Homeowner’s Protection Act is a law created to protect homeowners from paying unnecessary private mortgage insurance (PMI). Homeowners who accumulate the mandated amount of equity are not required to pay PMI, and they must be informed of this by the lenders. While it does not cover VA or FHA loans, it does lay out new requirements for loans that were established before July 29, 1999.
The Real Estate and Settlement Procedures Act
The Real Estate and Settlement Procedures Act (RESPA) was passed by the U.S. Congress in 1974. It is designed to protect the buyer from the lender and a third-party service agent. The Act prohibits kickbacks, reciprocal referrals, and obscured price competition. The customer must be provided with documents that show the specific costs and recipients of the loan.
Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) is a federal law passed in 1970. It is the foundation of consumer credit rights, as it regulates collection, use, and dissemination of sensitive consumer information. Consumer reporting agencies and creditors must provide consumers with written notification of, and change of, credit status.
Secure and Fair Enforcement for Mortgage Licensing Act
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (“SAFE Act”), was passed in order to reduce mortgage fraud and protect consumers. Mortgage Loan Originators (MLOs) are now required to be registered federally or licensed on a state level, and to pass background checks.
Contact Brei Law, your Tucson law firm today if you believe your rights have been violated.