HUD PUBLISHES NEW GUIDE TO HELP HOMEBUYERS UNDERSTAND
THE BUYING AND SETTLEMENT PROCESS

The Real Estate Settlement Procedures Act (RESPA) requires lenders to give the booklet to mortgage loan applicants to inform them about the procedures and costs involved in settlement. Revised for the first time since 1987, the new booklet does that and more.

In layman's language, the booklet explains current market practices, including a description of the role of buyer's brokers, mortgage brokers and other settlement participants. The booklet urges home buyers to comparison-shop for services, explains federal laws related to home-buying, and offers tips for getting consumer complaints resolved.

While RESPA requires lenders to distribute the booklet, Cuomo said HUD encourages everyone in the real estate business, especially agents and brokers, to make sure buyers have the booklet before they negotiate a sales contract and order settlement services.

The homebuyers guide (was linked to http://www.hud.gov/fha/res/sfhrestc.html) is now available on-line. It was published in the Federal Register on June 11 and will be available from the Government Printing Office. HUD is also distributing a limited number of the booklets at events during Homeownership Week, June 7-14.