- A Unique Pointers Booklet, which contains consumer information regarding various real estate settlement services (required for purchase transactions only). To view this booklet online, see Required Booklet: Buying Your Home, Settlement Costs and Information .
- A Good faith Estimate (GFE) of settlement costs, which lists the charges the buyer is likely to pay at settlement. This is only an estimate and the actual charges may differ. If a lender requires the borrower to use a particular settlement provider, then the lender must disclose this requirement on the GFE.
- A Mortgage Maintenance Revelation Declaration, which discloses to the borrower whether the lender intends to service the loan or transfer it to another lender. It also provides information about complaint resolution.
In the event the consumers do not discovered this type of files at the time of software, the financial institution need certainly to mail her or him inside three working days regarding acquiring the mortgage software. In case your bank converts along the financing contained in this three days, however, upcoming RESPA does not require the financial institution to include this type of records.
The latest RESPA law cannot give an explicit punishment to the failure to provide the Unique Pointers Booklet, Good-faith Estimate or Financial Upkeep Report. not, bank government might want to enforce punishment into the loan providers who fail to help you adhere to government laws. For more information, see RESPA: Defenses and you can Enforcement.
Disclosures in advance of Payment/Closure Takes place
Associated Providers Arrangement (AfBA) Disclosure This disclosure is required whenever a settlement service provider involved in a RESPA covered transaction refers the consumer to a provider with whom the referring party has an ownership or other beneficial interest. The referring party must give the AfBA disclosure to the consumer at or prior to the time of referral. The disclosure must describe the business 
arrangement that exists between the two providers and give the borrower an estimate of the second provider’s charges. Except in cases where a lender refers a borrower to an attorney, credit reporting agency or real estate appraiser to represent the lender’s interest in the transaction, the referring party may not require the consumer to use the particular provider being referred.
HUD-step one Settlement Statement This is a standard form that clearly shows all charges imposed on borrowers and sellers in connection with the settlement. RESPA allows the borrower to request to see the HUD-1 Payment Statement one day before the actual settlement. The settlement agent must then provide the borrowers with a completed HUD-1 Settlement Statement based on information known to the agent at that time. For a sample HUD-1, see: Blank HUD-1 Settlement Statement; for descriptions of various sections, see: HUD-1 Section J (lines 100-303) and HUD-1 Section L (lines 700-1400).
Disclosures from the Settlement
HUD-1 Settlement Statement At closing, the HUD-1 shows the actual settlement costs of the loan transaction. Separate forms may be prepared for the borrower and the seller. Where it is not the practice that the borrower and the seller both attend the settlement, the HUD-1 should be mailed or delivered as soon as practicable after settlement.
First Escrow Declaration This document itemizes the estimated taxes, insurance premiums and other charges anticipated to be paid from the Escrow Account during the first twelve months of the loan. It lists the Escrow payment amount and any required cushion. Although the statement is usually given at settlement, the lender has 45 days from settlement to deliver it.
Disclosures just after Settlement
Annual Escrow Declaration Loan servicers must deliver this statement to borrowers once a year. The annual escrow account statement summarizes all escrow account deposits and payments during the servicer’s twelve month computation year. It also notifies the borrower of any shortages or surpluses in the account and advises the borrower about the course of action being taken.
Maintenance Import Report This document is required if the loan servicer sells or assigns the servicing rights to a borrower’s loan to another loan servicer. Generally, the loan servicer must notify the borrower 15 days before the effective date of the loan transfer. As long the borrower makes a timely payment to the old servicer within 60 days of the loan transfer, the borrower cannot be penalized. The notice must include the name and address of the new servicer, toll-free telephone numbers, and the date the new servicer will begin accepting payments.