Banks and your rights
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Banks must comply with extensive federal and state lending laws when providing loans to customers. There are over 19 separate federal laws regulating home lending alone, and the volume of regulations could reach as high as the Eiffel Tower if stacked. Bank employees such as compliance analysts undergo years of education to learn these complex rules. In contrast, most customers do not fully read or understand the dense loan documents they sign, and cannot ensure their bank followed all procedures correctly. Customers must rely on banks complying with regulations, but a single error in signed documents could harm the borrower.
Banks and your rights
- 1. Banks and Your Rights A quick overview of the greatest strengths in our banking system is their biggest weakness
- 2. The laws, statutes and ordinances that regulate lending and real estate are extensive.
- 3. The average citizen does not have the financial knowledge and understanding about their loan that a sophisticated banker possesses.
- 4. CONSIDER THIS Our federal government and our state government pass laws that regulated various types of lending If you were to activity. Lending on homes, buildings, credit cards are some common examples. take just on the home lending For instance, there are over 19 separate lending laws in the federal level that regulate the laws, the books home lending or mortgage industry. as stacked The laws have acronyms like: would reach as RESPA high as the TILA GRAM BLILY ACT Effeil Tower. ECOA FACTA
- 5. Consider this Bank regulators, bank compliance analyst, and attorneys go to school on average of 3 to 5 years after college to learn and become proficient in just one area of the lending laws. Some compliance professionals attend special schools for weeks on end just to learn the new changes in a specific lending law.
- 6. Ask yourself these questions. 1. Do you recall the number of loan pages that you signed to take a loan out from the bank? 2. Did you read all of it and understand it? 3. What makes you think that your loan officer understood the documents? 4. Did your bank do everything correctly, both in the preparation and underwriting of your loan, the execution of the loan, and in the documentation of the loan?
- 7. When making your loan, your Bank had to be in compliance with all of the federal and state lending regulations. From the time that they take your loan application through the processing of your documents and reviewing all of the loan supporting documents: title, survey, financial, appraisal, land parcels, tax identifications, etc..
- 8. YOU HAVE TO BE RIGHT ONLY ONCE. WHEN YOU SIGNED THE LOAN PAPERWORK AND YOU ATTESTED TO ITS ACCURACY.
- 9. Side by Side Comparison The Bank The Borrower A Bank is just another name for corporation. It is a special designation.