Section 32

If you are planning on purchasing or refinancing your home you will most likely have to pay points and fees. Section 32 is a Federal law that protects consumers from excessive points and fees.

Section 32 laws require lenders to provide extra disclosures to the borrower at least 3 days before the loan paperwork is signed. This paperwork includes extra warnings on the consequences of high-interest loans. This is on top of the normal 3-day recission period for a refinance.

You can often look up your state's Section 32 laws by contacting your state's Department of Banking.

Section 32 will vary from state to state. Consult with your mortgage professional for information.