In addition to the right to view your credit report and FICO score, you also are protected by the following:

RESPA

The Real Estate Settlement Procedures Act. This requires the lender to provide you with a “Good Faith Estimate of Settlement Costs” early in the loan process. These are only estimates, so be sure to keep a copy and compare with the final settlement costs. Through a Servicing Disclosure Statement provided by your lender, RESPA also requires your lender to tell you if it expects someone else to be servicing your loan. Your lender will have three days from the time you apply for the loan to let you know about this. RESPA also requires all parties involved in your transaction to disclose affiliated business arrangements and that you are not required to use these providers.

HUD-1 Settlement Statement

The U.S. Department of Housing and Urban Development also provides protection via the HUD-1 Settlement Statement. One business day before closing, you have the right to inspect this statement, which itemizes the services provided to you and the accompanying fees charged. Be sure to call the settlement agent if you wish to inspect this form. The form generally must be delivered or mailed to you at or before the settlement.

Escrow / Impound Account

Your lender may require you to establish an escrow or impound account to ensure that your taxes and insurance premiums are paid on time. In most cases you will have to pay an initial amount at the settlement to start the account and an additional amount with each month’s regular payment. Your payments may include a “cushion” or extra amount to ensure that the lender has enough money to make the payments when due. RESPA limits the amount of the cushion to a maximum of 2 months of escrow payments. At closing or within the next 45 days, the individual servicing your loan must give you an initial escrow account statement. That form will show all of the payments which will be expected to be deposited into and disbursed from the escrow account during the year ahead. Your lender or servicer will review the escrow account annually and send you a disclosure each year, which shows the prior year’s activity and any adjustments necessary in the escrow payments that you will make in the forthcoming year.

Prohibiting Discrimination (ECOA, Fair Housing Act and FCRA)

Equal Credit Opportunity Act or ECOA and the Fair Housing Act and the Fair Credit Reporting Act (FCRA) prohibit discrimination. ECOA prohibits lenders from discriminating against you on the basis of race, color, religion, national origin, sex, marital status, age, if any or all of your income comes from any public assistance program or if you have exercised any right under any Federal consumer credit protection law. The Fair Housing Act also prohibits discrimination in real estate transactions on the basis of race, color, religion, sex, handicap, familial status or national origin. Frequently, there are differences in the amounts of settlement costs charged to you – they may be based on your credit worthiness or they may be unlawfully discriminatory. It is important that you examine your settlement documents closely, especially lines 808-811 on the HUD-1 settlement statement. If you feel you have been discriminated against by a lender or anyone else, you may file a private legal action or complain to a state, local or Federal administrative agency.