There are so many options now for potential home buyers when it comes to mortgage loans, refinancing and home equity/lines of credit. But how do you tell what option is right for you.
Can a quick and easy app answer all your questions?
Are you able to establish a relationship with a website and trust that it is selecting the best package for your project?
Choice Lending of Rancho Cucamonga is here to make sure you are informed and build a relationship with you. We are here to make sure that your questions are answered, that you find the best loan for your situation, and most importantly that you understand your rights and how you are protected as a potential home buyer.
There are several other federal laws that provide you with protections during the home buying process. These include the:
- Equal Credit Opportunity Act–provides you with the right to certain credit information
- Fair Housing Act–prohibits discrimination
- Home Ownership and Equity Protection Act of 1994–establishes requirements for certain loans with high rates and fees
The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against credit applicants in any aspect of a credit transactions on the basis of race, color, religion, national origin, sex or marital status, or age; the fact that all or part of the applicant’s income comes from any public assistance program; or the fact that the applicant has in good faith exercised any right under certain federal consumer credit protection laws. The ECOA applies to credit transactions involving residential property, but also extends to certain other credit transactions, such as credit cards and auto lending.
The Fair Housing Act prohibits housing discrimination because of race, color, religion, sex, disability, familial status, or national origin. This prohibition applies, among other things, to the sale of a home to you, the making of loans for purchasing, constructing, improving, repairing or maintaining a dwelling, and the brokering and appraising of residential real estate.
If you feel you have been discriminated against by a lender or anyone else in the home buying process in violation of the ECOA or the Fair Housing Act, you may contact a federal regulatory agency to submit a complaint. See the More information and Contact information appendices for information about how to submit a complaint to the CFPB, HUD, or another federal agency. You can file complaints of violations of the Fair Housing Act with HUD. Following an investigation, if HUD determines that there is a reasonable cause to believe that your rights under the Fair Housing Act have been violated, it can issue a Charge of Discrimination on your behalf that will be adjudicated in administrative proceedings or in federal court.
You can submit a complaint to the CFPB. The CFPB will forward your complaint to the lender and work to get a response. Lenders have 15 days to respond to you and the CFPB. You can review the lender’s response and give feedback to the CFPB. But if the CFPB determines that another agency would be better able to assist you, the CFPB will instead forward your complaint to that agency and let you know. You may also be able to file a complaint with an appropriate state agency under the state’s equal credit opportunity laws.
If your lender is supervised by a federal banking agency, you may also be able to file a complaint with that agency. Your lender should be able to tell you if it is supervised by a federal banking agency and if so, which one. If your lender is a credit union, ask your lender whether it is supervised by the National Credit Union Administration (NCUA). Contact information for the federal banking agencies and the NCUA can be found in the Contact information appendix of this booklet.
You may also be able to file a private legal action or take other appropriate action if you are the victim of discrimination. You may wish to consult with an attorney to understand your rights.
Prompt action/notification of action taken
Your lender or mortgage broker must act on your loan application and inform you of the action taken no later than 30 days after it receives your completed application. Your loan application will not be considered complete, and the 30-day period will not begin, until you provide to your lender or mortgage broker all of the material and information requested.
Statement of reasons for denial
If your loan application is denied, ECOA requires your lender to make sure you receive a statement of the specific reasons why it denied your application or tell you how you can obtain such a statement. The notice should also tell you which federal agency regulates the lender that denied your application so you can contact the agency if you believe it has illegally discriminated against you.
Obtaining your credit report
The Fair Credit Reporting Act (FCRA) requires a lender or mortgage broker that denies your loan application to tell you whether it based its decision on information contained in your credit report. If that information was a reason for the denial, the notice will tell you where you can get a free copy of the credit report. You have the right to dispute the accuracy or completeness of any information in your credit report. If you dispute any information, the credit reporting agency that prepared the report must investigate free of charge and notify you of the results of the investigation.
Obtaining your appraisal
The lender needs to know if the value of your home is enough to secure the loan. To get this information, the lender typically hires an appraiser, who gives a professional opinion about the value of your home. ECOA requires your lender to tell you about your right to receive a free copy of all appraisal reports or other valuations developed in connection with your application. Your lender generally has to provide you with the copies of the appraisals and valuations at least three days before your loan closes. Consumers who are obtaining certain higher priced mortgages must also receive a copy of a full interior appraisal.
The Home Ownership and Equity Protection Act of 1994 (HOEPA) addresses certain unfair practices and establishes requirements for certain loans with high rates and fees. You can find out more information by contacting the CFPB at the website address and phone number listed in the More information and Contact information appendices below.
You are always welcome at Choice Lending. Give us a call, (877) 777-1203, or drop by our Rancho Cucamonga office. Let us get to know you and answer your lending questions.