My Rights as a Homebuyer

Fair Housing (Housing Discrimination) & Equal Opportunity

Their mission is to create equal housing opportunities for all persons living in America by administering laws that prohibit discrimination in housing on the basis of race,color, religion, sex, national origin, disability, and familial status.

What they do

The Office of Fair Housing and Equal Opportunity administers federal laws and establishes national policies that make sure all Americans have equal access to the housing of their choice.

Click Here for Fair Housing: Equal Opportunity for All- brochure

Mortgage Borrowers Rights

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.

  1. You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
  2. You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.
  3. 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.
  4. You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.
  5. You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.
  6. You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.
  7. You have the RIGHT to ask questions about charges and loan terms that you do not understand.
  8. 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.
  9. You have the RIGHT to know the reason if your loan was turned down.
  10. You have a RIGHT to ask for the HUD settlement cost booklet “Shopping for Your Home Loan”.

Real Estate Settlement Procedures Act (RESPA)

RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

HUD is requiring that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a newHUD-1 settlement statement. New RESPA regulations were published November 17, 2008 and are scheduled to take full effect on January 1, 2010. The "New RESPA Rule FAQs" were comprised from industry questions and are posted to facilitate implementation of these new requirements.

Predatory Lending

Over the last several years, our nation has made enormous progress in expanding access to capital for previously under served borrowers. Despite this progress, however, too many families are suffering today because of a growing incidence of abusive practices in a segment of the mortgage lending market. Predatory mortgage lending practices strip borrowers of home equity and threaten families with foreclosure, destabilizing the very communities that are beginning to enjoy the fruits of our nation’s economic success.

If you believe you have been a victim of predatory lending practices there are Federal agencies that can help. Please refer to the list of agencies below and contact the organization or agency that you think can help address your specific problem.

Protect yourself from predatory lenders:

For information about loan fraud and advice about preventing it, see Don't Be A Victim of Loan Fraud.

Local information on predatory lending:

Here are some Local Resources by state, that can help you avoid being a victim of predatory lending.

For FHA loans:

For problems relating to origination, underwriting, or appraisals of FHA loans, contact the FHA Resource Center.

Avoiding foreclosure on an FHA loan:

Visit the HUD National Servicing Center web page and have your FHA case number at hand. You will find your case number on the mortgage settlement statement.

Non-FHA mortgage loans:

For complaints concerning practices which include disclosure of interest rates and finance charges (APR), prepayment penalties, credit life insurance, fraud, deception, etc. contact the appropriate agency from this list to complain about the mortgage lender or mortgage broker.

Lender threatening to foreclose or mortgage in default:

HUD funds housing counseling agencies throughout the country. To find a housing counseling agency near you, call toll-free (800) 569-4287 immediately for free guidance or visit the web page.

Settlement Procedures:

(FHA and non-FHA mortgages). Visit the RESPA web page for information on RESPA disclosure requirements such as the Good Faith Estimate, HUD-1 and escrow account statements, and how to file a complaint with your lender concerning the servicing of your loan.If you are still unsure who can best help you, please contact HUD.

File a housing discrimination complaint:

Discrimination in mortgage lending is prohibited by the federal Fair Housing Act and HUD's Office of Fair Housing and Equal Opportunity actively enforces those provisions of the law. Learn how the Fair Housing Act can help you fight predatory lending.