What consumer protections are available for mortgage lenders?

In Kansas, consumers have a number of protections when it comes to mortgage loans. The Kansas Mortgage Broker and Lender Act lays out the rights, responsibilities, and obligations of mortgage lenders and borrowers. Mortgage lenders must disclose key information such as annual percentage rates, points, and other fees upfront. Lenders must also provide borrowers with a good faith estimate within three days of when they apply. Mortgage lenders are also required to give borrowers a copy of the Mortgage Loan Disclosure Statement which provides important information about the loan before closing. This includes the interest rate, points, annual percentage rate, closing costs, and other fees. The lender also must provide the borrower with a Notice of Right to Rescission within three days of closing the loan. This notice gives the borrower three days to reconsider the loan and cancel it without penalty if desired. Borrowers are also protected from certain lending practices which are prohibited in Kansas. These include engaging in deceptive practices such as falsely misrepresenting the loan terms or a borrower’s income, charging fees that aren’t agreed upon, and requiring unnecessary services. Additionally, lenders must obey the Truth in Lending Act which requires them to give borrowers a clear disclosure of all loan fees and terms. By adhering to these laws, mortgage lenders in Kansas are providing borrowers with the protections they need to make informed decisions when purchasing or refinancing a home.

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What consumer protections are available for mortgage lenders?

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