Holden Act of 1977 (Continued)
The Holden act effectivley encourages increased lending in neighborhoods where, in the past, financing has been ulitmatley unavailable.The major goal of the Holden Act is to ensure and increase the supply of safe and decent housing for creditworthy borrowers and to prevent long term neighboorhood decay. To ensure that prospective borrowers are aware of their rights under this federal legislation, lenders must notify all applicants of the provisions of the Holden Act at the time of their loan Application.
Lender Compensation Disclosure
The Lender Compensation Disclosure also known as the Commisioner`s Regulation 2904 requires that all real estate licensees must disclose to their principals all compensation , or expected compensation , reagrdless of the form, time, or source of payment. This disclosure is required even if the broker does not handle the financing aspect of the transaction and it MUST be given to each party to the transaction before the transaction closes escrow.
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