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FRECI_7-5 - 1 Uniform Settlement Statement...

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1 Florida Real Estate Commission Course I Pre-Licensing Course for Sales Associates Session 7 – Lecture 5 Federal and State Laws Pertaining to Real Estate Copyright, 2004 2 Lecture Preview What will you learn from this lecture? Introduce the Real Estate Settlement Procedures Act Copyright, 2004 3 Vocabulary Terms None this lecture! Copyright, 2004 4 The Typical Real Estate Closing Process 5 Real Estate Settlement Procedures Act of 1974 1. Uniform settlement statement 2. Special HUD borrower’s booklet 3. Good-faith estimate of settlement costs 4. Certain other disclosures/requirements 5. Exempt transactions Requires disclosure of the amount and type of closing costs a borrower will pay RESPA addresses: (Federal consumer protection legislation) Copyright, 2004 6 RESPA Requirements Lenders must provide closing costs to closing agent Borrower’s settlement costs must be reflected on the HUD 1 Copy of HUD 1 to buyer one business day prior to closing (if possible) (HUD 1 Form)
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Unformatted text preview: 1. Uniform Settlement Statement http://www.hudclips.org/sub_nonhud/html/pdfforms/1.pdf#search='hud%201' 2 7 RESPA Requirements • RESPA information booklet given to borrower at time of loan application or w/in 3 business days • Explains the various participants in a transaction – Brokers – Lenders – Closing agent • Explains the type of closing costs associated with a home purchase 2. Special HUD Borrower’s Booklet http://www.hud.gov/offices/hsg/sfh/res/sfhrestc.cfm Copyright, 2004 8 RESPA Requirements • Lender must provide estimate at time of loan application or w/in 3 business days • Must include any standard settlement costs plus any charges unique to that particular loan (when known) 3. Good-Faith Estimate of Settlement Costs “Closing costs” and “settlement costs” are synonymous! Copyright, 2004 9 End of Lecture At the conclusion of this lecture, complete Quiz 7-5 in the course....
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