Forensic Loan Audit

Under the Real Estate Settlement Procedures Act (RESPA) Regulation X, a lender is required to provide a borrower a special information booklet not later than three business days after the mortgage application is received or prepared. The booklet may be mailed or delivered in person, but it must be sent during the time frame. There are two exceptions to this rule:

1. If a borrower is using a mortgage broker then the mortgage broker must give the booklet to the borrower;
2. If the borrower is turned down for a loan during the time frame then the booklet is not required.

The special information booklet contains important consumer information regarding a variety of real estate settlement services. While there is no explicit penalty for failure to provide the booklet, bank regulators have been known to impose fines and penalties for not providing the special information booklet. If your client did not receive the booklet during the time frame then you can register a complaint under RESPA law at

Director, Office of RESPA and Interstate Land Sales
US Department of Housing and Urban Development
Room 9154
451 7th Street, SW
Washington, DC 20410

Learn more about RESPA violations and loan audits from U.S. Lender Audit.