What consumer protections are available for mortgage lenders?

When dealing with a mortgage in Washington, consumer protections are available to both the lender and the homebuyer. The Washington State Department of Financial Institutions regulates consumer lending and enforces applicable laws to ensure consumer protection. In addition, several federal laws provide additional protection for mortgage lenders. The Home Mortgage Disclosure Act (HMDA) protects borrowers and lenders by requiring lenders to provide information about the credit they grant to home buyers. This data is then used to monitor and assess lenders for compliance with consumer protection laws. The Real Estate Settlement Procedures Act (RESPA) also requires lenders to provide disclosures about pricing and closing costs to borrowers and limits a lender’s use of points and fees. The Federal Truth in Lending Act (TILA) mandates that lenders disclose all fees associated with a loan, including the annual percentage rate, to consumers in writing. This helps ensure consumers are aware of the total cost of a loan. Further, the Equal Credit Opportunity Act (ECOA) prevents lenders from discriminating against consumers based on race, color, national origin, religion, sex, marital status, age, or receipt of public assistance. Lastly, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) aims to protect consumers by requiring lenders to more thoroughly evaluate borrowers’ ability to repay their loans. This Act also requires lenders to provide consumers with additional disclosure documents regarding their loan terms and conditions. In summary, Washington state has many regulations in place to protect consumers and mortgage lenders. These regulations provide transparency and ensure every party involved receives fair and equitable treatment.

What consumer protections are available for mortgage lenders?

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