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.

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.