Q: Is a banking lender and a mortgage company the same?

A: No; You can receive a loan from either a bank or a mortgage company. However, you may be able to qualify for a loan at a mortgage lender which you otherwise you might not be able to qualify for. Banks offer different types of financial instruments than mortgage companies do and typically do not have as many available home purchasing options available. Mortgage companies do not offer banking services such as checking accounts or savings accounts either.

Q: How much is the legal interest rate limit which can be charged on a mortgage loan?

A: Per federal law (PL 96-221) the ceiling on interest rate limitations was lifted on first lien mortgages in 1981.

Q: Are FHA, and VA the only federally sponsored types of loans that are available?

A: No; Most conventional loans are covered by RESPA as well.

Q: Does RESPA also cover home equity loans?

A: Yes; residential equity loans which are secured by property are also covered.

Q: Are mortgage brokers required to disclose payments that they receive which the borrower is not paying?

A: Yes; Any payments that a mortgage broker receives from the negotiation of mortgage must be disclosed.

Q: Can a real estate professional and a mortgage company suggest their services together?

A: Yes; Nothing in RESPA prevents joint advertising of services.

Q: Can I apply for a VA guaranteed loan from a mortgage lender?

A: Yes; Any mortgage lender that participates in the VA loan program is eligible to provide the application for the VA guaranteed loan. However, in order to participate, you will be required to show a Certificate of Eligibility to the lender.

Q: When the is a mortgage broker involved, who’s responsibility is it to deliver the Good Faith Estimate to the consumer?

A: In the event that the mortgage broker is acting as an exclusive agent, there should be a GFE provided within three days of receipt of the application, by either the broker or the lender. However, if the broker is not an exclusive agent of the lender, then it is the lenders responsibility to see that there was an estimate of costs sent to the consumer.