REFINANCING? Know Your Rights And Protect Your Wallet
September 1, 2011

Home Refinancing Can Be Troubled Waters...Read Up On New HUD Rules

Have you ever gotten a home loan or refinanced, and signed on the dotted line feeling like you had been ROBBED?

The federal laws governing mortgage brokers, escrow officers and bankers have CHANGED.  HUD is trying to stop the age-old practice of “kick-backs” between real estate agents, brokers, title companies and others who benefit from escrow accounts.  PROTECT YOURSELF.  You should always request a “Good Faith Estimate” and shop it around before settling on a loan agreement for your house.  Here are your rights, straight from the Department of Housing and Urban Development:

This may be the largest and most important loan you get during your lifetime. You should be aware of certain rights before you enter into any loan agreement.

  • You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
  • You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.
  • You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.
  • You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.
  • You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.
  • You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.
  • You have the RIGHT to ask questions about charges and loan terms that you do not understand.


  • You have the RIGHT to a credit decision that is not based on your race, color, religion, national origin, sex, marital status, age, or whether any income is from public assistance.


  • You have the RIGHT to know the reason if your loan was turned down.


  • You have a RIGHT to ask for the HUD settlement cost booklet “Shopping for Your Home Loan”.

REMEMBER:   The lender processing your loan will probably SELL the loan to another banking consortium.  Make sure that you know WHOM to address any complaints, if you have questions.

For HUD’s settlement cost booklet and other helpful information about RESPA, visit our home page.? For other questions, call (800) 569-4287.




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