Real Estate Settlement Procedures Act (RESPA)
The Real Estate Settlement Procedures Act (RESPA) which is implemented
by Regulation X primarily regulates the disclosures required at application and closing
for real estate secured loans. These disclosures include the following:
RESPA Application Disclosures
- Home Equity Loans
A. Good Faith Estimate (GFE)
The Good Faith Estimate is a list of estimated fees an applicant will have to pay for a home equity closed-end loan. Eastern Bank’s Good Faith Estimate is state specific.
B. RESPA Servicing Disclosure Statement
The RESPA Servicing Disclosure statement is required for all mortgage loans that are in first lien position. It is required to be provided to the applicant(s) at the time of application. This disclosure explains to the applicant the likelihood of Eastern Bank selling the servicing rights of the loan and the rights the borrower has in the event the loan servicing is sold. Over the past few years Eastern Bank has not sold any of its home equity loans and the likelihood that it will in the future is zero to twenty-five percent.
- Home Equity Lines of Credit
A. Home Equity Application Disclosure
The Home Equity Application Disclosure provides to an applicant all of the terms and conditions of a home equity line of credit. This information is provided to the applicant at the time of application so that the applicant can understand all of the fees, possible actions, requirements, rates, minimum payment, and other pertinent information prior to obtaining the loan.
B. "When Your Home Is On the Line...."
This disclosure statement is provided by the federal government and must be given to the customer at the time of the application. It informs the applicant that if they take a home equity line of credit with Eastern Bank, they could lose their home if the loan is not paid.