A set of mortgage laws have been introduced by the US government in order to administer the mortgage lending method. Some laws have also been made to protect the rights and financial information of the borrowers. It is important on the part of the borrowers to know about the mortgage laws and consumer rights so that they can manage the difficult situations in mortgage on their own. The borrowers may use a mortgage calculator to calculate a mortgage payment if they are planning to take out a home loan. This will enable them to understand their affordability so that they can pay off the home loan on time.
Mortgage laws and the consumer rights
The borrowers need to know the mortgage laws and the consumer rights properly. Read on to know about some of them.
Fair Debt Collection Practices Act – The FDCPA or Fair Debt Collection Practices Act have been made so that the debt collectors may treat the borrowers in an equal manner. This Act prohibits some methods of debt collection. The debt collectors are not allowed to use any abusive language or make any unjust practice while handling the customers. The Act also stops the debt collectors from revealing the debt information of the customers to any outsider.
Equal Credit Opportunity Act – This Act avoids credit discrimination on the basis of age, gender, marital status, religion, race or nationality. Equal Credit Opportunity Act observes content of the application, written or verbal opposition of an application and the standard questions.
Real Estate Settlement Procedures Act – Refinance loans, improvement loans, mortgage loans and home equity lines of credit for 1-4 unit houses are covered in the consumer protection law. The Real Estate Settlement Procedures Act enables the borrowers to get some confessions from the lenders at different stages of the lending process. It also prevents some practices that may increase the closing costs.
Home Mortgage Disclosure Act – The Home Mortgage Disclosure Act enables the lenders to provide public loan data on both the accepted as well as the rejected loans.
Truth in Lending Act – Truth in Lending Act is a part of the Consumer Credit Protection Act. This law indicates that the borrowers should be provided some written confessions. Some of the revelations that the borrowers are allowed to get are finance charge, total sales price, annual percentage rate, and total payment. This Act also safeguards the rescission rights for the customers. Truth in Lending Act is one of the important mortgage laws and consumer rights that you should know.
Fair Housing Act – This Act prevents unfairness in the housing related transactions on the basis of gender, race, religion, nationality, color, familial status or physical disability.
The New Homeowner’s Protection Act is considered to be one of the important mortgage laws and consumer rights. This Act signifies the rights of the homeowners and the rules for the lenders related to the cancellation of private mortgage insurance (PMI).
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