A new settlement costs booklet required under the Real Estate Settlement Procedures Act has been published.
The booklet, Shopping for Your Home Loan – HUD’s Settlement Cost Booklet, was disclosed by the U.S. Department of Housing and Urban Development in a public filing today.
HUD said that the booklet is required as a result of the new rule under RESPA, which “establishes the process for disclosing settlement costs in the financing or refinancing of a home, and helps protect consumers from unethical practices by settlement service providers during the home-buying and loan process.”
Mortgage brokers and lenders are required to provide the booklet to prospective borrowers within three days of the loan application.
The booklet is designed to educate borrowers about Good Faith Estimates, the HUD-1 Settlement Statement and other documents associated with a home purchase. It also provides information about balloon payments, prepayment penalties and interest rates and fees.
view HUD Settlement Costs Booklet
