Requires lenders to give borrowers advance notice of closing costs.
A federal law requiring lenders to provide home buyers with information about settlement costs.
A law that states how mortgage lenders must treat those who apply for real estate loans on property with 1-4 units. Example : A lender is required to provide a good faith estimate of closing costs along with other Disclosures within 3 days of an application being filed.
A federal law that says a lender must give a borrower an estimate of closing costs within 3 business days of applying for a loan. After you apply for a loan, the lender must give you a Good faith estimate within 3 business days. The Good faith estimate is a document with a detailed breakdown of the costs that you will need to pay at closing. RESPA also requires that lenders give you a Uniform Settlement statement or HUD-1 before or at closing, which lists the final closing costs. This law isn't taken lightly - if lenders don't supply you with this information, they'll be slapped with a $10,000 fine and possibly jail time.
Treatment, stated by law, given to people who file for loans and mortgages on 1-4 units, e.g. a lender is required by law to give a good faith estimate of closing costs within 5 days of someone filing for a loan.