attaching a copy of the 27 page Senator Dodd letter. [HUD LOGO]
| U.S. DEPARTMENT OF HOUSING AND DEVELOPMENT WASHINGTON, D.C. 20410-8000 OFFICE OF HOUSING December 18, 2007
Dear Mr. Webster and Ms. Webster: Thank you for your letter concerning the disclosure of settlement charges on the Good Faith Estimate and/or the HUD-1 Settlement Statement. HUD's Office of RESPA and Interstate Land Sales administers the Real Estate Sellement Procedures Act, more commonly called RESPA. In your complaint, you stated that you did not receive a copy of the Good Faith Estimate. Regrettably, under exising law, this Office is unable to enforce complaints involving the Good Faith Estimate and HUD-1 Settlement Statement. The RESPA statute provides no penalty for a substantial variance from the amount(s) given on the Good Faith Estimate and the actual charges on the HUD-1. We are working to change that part of the law and letters such as yours provide valuable information which may be used in the development of future legislative recommendations. Additionally, the other issues you raised in your complaint are not RESPA related, and per your correspondence, appears to be in litigation with the courts. Enclosed are RESPA fact sheets. For more information about RESPA, please visit HUD's RESPA website at www.hud.gov/respa. Should you have any questions concerning this matter, please contact Eddy Faye Norfleet at (202) 402-0502. (signature) Ivy M. Jackson Director This was the pathetic response from our filed
complaint attaching a copy of the
Senator Dodd letter.
Incredibly HUD's response not only ignored our numerous charges,
but whittled them down to
"In your complaint, you stated that you
did not receive a copy of the Good Faith Estimate." which was
the least of our detailed complaint.
|
Question: I made an application for a loan, but I did not get a
Settlement Costs Booklet or a Good Faith Estimate. What should I do?
| Answer: You should contact the lender or mortgage broker and ask for them. The lender or mortgage broker is required by RESPA to send these documents out within three days of receiving the application. The lender is only required to give you a booklet if you are purchasing a home. If the lender denies your application within three days, it is not required to give you these documents.
Question: I applied for a loan at 7 1/2 percent, but when I got
to settlement the lender charged me 8 percent. Is this a RESPA
violation?
| Answer: No. However, the Truth-in Lending Act (TILA) requires that you get a disclosure concerning the interest rate. TILA is administered by the Board of Governors of the Federal Reserve System. (See Consumer Complaint Reference List). |