Eddy's Blog

Lender Compensation DisclosureA real estate licensee may NOT recieve compensation for referring customers to an escrow company, pest control firm, home inspection company, or title insurance company. Any compensation recieved would be considered commerical bribery. Any person caught by authoritie...

Holden Act of 1977 (Continued)The Holden act effectivley encourages increased lending in neighborhoods where, in the past, financing has been ulitmatley unavailable.The major goal of the Holden Act is to ensure and increase the supply of safe and decent housing for creditworthy borrowers and to p...

Disclosures Required by California LawIt is federal policy to ensure fair housing by prohibiting discrimination based on race, color, religion, sex, national origin, marital status, age , or physical disabilities in connection with the sale, rental, construction, or financing of housing. Many sta...

Real Estate Settlement Procedures Act (continued)In all non-federally related brokered loans and in all Article 7 loans under california law (with first trust deeds of less than $30,000.00 , whether they are federally related or not); mortgage brokers are STILL required to provide the California ...

Real Estate Settlement Procedures Act (continued)With the Good Faith Estimate buyers and borrowers will be able to make informed decisions during the loan/sale transaction and the settlement and escrow process. A lender may NOT charge anyone in connection with the preparation of the Good Faith Es...

Real Estate Settlement Procedures ActThe Real Estate Settlement Procedures Act (RESPA) , was put into law in 1974 and is a federal disclosure law which helps protect buyers or borrowers who obtain federally realted loans such as FHA,VA or conventional loans that are sold to FNMA, GNMA, or FHLMC. ...

Adjustable Rate Loan Disclosure A lender offering adjustable rate residential mortgage loans must provide prospective borrowers with a copy of the most recent Federal Reserve Board publication which provides information about adjustable rate loans. The title is "Consumer Handbook on Adjustable Ra...

Lender/Purchaser Disclosure Statement , State of California Form RE 851A Form RE 851A is provided by the California Department of Real Estate Mortgage Lending. It serves as a Disclosure Statement Summary. It is divided into ten parts: 1) Broker Information - States Brokers name, real estate licen...

Right Of Rescission The right to rescind (cancel) a real estate loan applies to most consumer credit loans (hard money loans) or refinance loans. Loans used for the purchase or construction of the borrower`s personal residence (purchase money loans) have no right of rescission, The loan funds the...

Advertising The Truth in Lending Actalso establishes disclosure standards for advetisements that refer to certain credit terms. If the annual percentage rate (APR) is disclosed, no more disclosures are required. If the APR is not disclosed , then all the specifics of all credit terms must be disc...