HUD PUBLISHES NEW GUIDE TO HELP HOMEBUYERS
UNDERSTAND
THE BUYING AND SETTLEMENT PROCESS
The Department of Housing and Urban Development has
published a new booklet to help consumers understand the home
buying and settlement process, Housing Secretary Andrew Cuomo
announced today.
The Real Estate Settlement Procedures Act (RESPA) requires
lenders to give the booklet to mortgage loan applicants to inform
them about the procedures and costs involved in settlement.
Revised for the first time since 1987, the new booklet does that
and more.
In layman's language, the booklet explains current market
practices, including a description of the role of buyer's
brokers, mortgage brokers and other settlement participants. The
booklet urges home buyers to comparison-shop for services,
explains federal laws related to home-buying, and offers tips for
getting consumer complaints resolved.
While RESPA requires lenders to distribute the booklet,
Cuomo said HUD encourages everyone in the real estate business,
especially agents and brokers, to make sure buyers have the
booklet before they negotiate a sales contract and order
settlement services.
The homebuyers guide (was linked to http://www.hud.gov/fha/res/sfhrestc.html) is now available on-line. It was published
in the Federal Register on June 11 and will be available from the Government Printing
Office. HUD is also distributing a limited number of the booklets at events during
Homeownership Week, June 7-14.
Content Archived: January 20, 2009
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