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LESSON 18: WHAT LENDERS MUST DO
(continued from previous page)
The TILA
statement must be given to you within three business days of
application if you're applying for a loan to buy a home. If the
information changes, the lender has to provide an update form at
or before closing. That's also when refinance customers usually
receive this form.
Servicing disclosure statement
Federal law requires your lender to provide you with this statement
when you apply for a loan or within the next three business days
of submitting your application. The statement indicates whether
the lender believes that someone else will end up being the mortgage
servicer on your loan. A servicer collects payments, handles disputes,
sends out escrow statements and performs other functions after a
loan closes. We'll talk more about their role in Lesson
25.
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Your loan may be serviced by someone other
than your your original lender.
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Affiliated business arrangement
disclosure
If you plan to get your loan from a mortgage company operated by
a builder or real estate agency, you should receive an affiliated
business arrangement disclosure when the agent or builder refers
you to that company. It simply states that a borrower doesn't have
to use the services of the affiliated company and is free to shop
elsewhere.
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Lenders must provide you the good faith estimate, the TILA statement,
and the servicing disclosure statement within three business
days of applying for your loan. |
"Good
faith estimates are just that -- good faith estimates. Make
sure you compare them."
Donna K. Neal, Community Credit Union, Plano, Texas
"Make sure you distinguish
the charges that your lender controls froim the chartes
of third-party service providers. Pay a lot of attention
to the lender's rate fees and points."
Kris Taraz, Inhouse Capital, La Jolla, Calif
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