Do all the “rights” enumerated in the Borrowers Bill of Rights actually apply to applicants for mortgage loans covered under the Act?
One or more of the enumerated “rights” do not, in fact, apply to applicants for mortgage loans as the term is defined under the Act. For example, Regulation Z of the Board of Governors of the Federal Reserve implementing the Truth in Lending Act, allows lenders to provide their good faith estimates before consummation, or not later than three business days after the lender receives the consumer’s written application, whichever is earlier. Additionally, the right to receive a copy of the HUD settlement costs booklet “Buying Your Home” applies to transactions in which the borrower is actually buying a home – a purchase money transaction. Loans, which are purchase money transactions, are not “mortgage loans” as defined in the Act, however. Consequently, borrowers engaged in loan transactions covered under the Act are not entitled to receive a copy of the HUD settlement costs booklet. If one or more of the “rights” do not actually apply to applicants for covered mortgage loans, may a lende
