RESPA Section 8 Required Disclosure
This disclosure is provided to you pursuant to the Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2607, and its implementing regulation, Regulation X (12 C.F.R. Part 1024).
This Affiliated Business Arrangement Disclosure (“Disclosure”) is provided to inform you of business relationships between STX Lending and certain settlement service providers. The Real Estate Settlement Procedures Act (RESPA) requires that we disclose these relationships so you can make an informed decision when selecting settlement service providers.
1. Affiliated Business Relationships
STX Lending operates as a trade name (dba) of Neighborhood Loans, Inc. (NMLS #222982). The following affiliated business relationships exist between Neighborhood Loans, Inc. and the settlement service providers listed below:
| Service Provider | Service Type | Nature of Relationship |
|---|---|---|
| Neighborhood Loans, Inc. | Mortgage Lending | Parent company of STX Lending (dba). All mortgage origination activities are conducted under this entity. |
This table reflects current affiliated business arrangements as of the date above. We will update this disclosure if new affiliated relationships are established.
Because of the business relationships listed above, referrals to these providers may provide one or more of these entities with a financial or other benefit. Set forth below are the estimated charges or range of charges for the settlement services listed. These charges are estimates only. The actual charges may vary depending on the specifics of your transaction.
2. Your Rights Under RESPA
You are NOT required to use any of the settlement service providers listed above as a condition for the settlement of your loan. There are frequently other settlement service providers available with similar services. You are encouraged to shop around.
Your Freedom to Choose
You are free to shop for, select, and use any settlement service provider you choose. Using a provider from this list is entirely optional and will not affect your loan approval, terms, or interest rate.
3. Estimated Charges for Settlement Services
The range of charges for common settlement services associated with your mortgage transaction may include, but is not limited to:
- Credit report — $30 to $100
- Appraisal — $400 to $800 (varies by property type and location)
- Flood certification — $10 to $25
- Title search and title insurance — $500 to $2,500 (varies by loan amount and property location)
- Escrow/closing fee — $300 to $800
- Document preparation — $100 to $400
- Recording fees — $50 to $250 (county-specific)
- Notary fee — $100 to $200
- Survey — $200 to $600 (if required)
- Pest inspection — $75 to $200 (if required)
These are general estimates. Your actual settlement costs will be detailed on your Loan Estimate, which you will receive within three (3) business days of submitting a complete loan application, and on your Closing Disclosure, which you will receive at least three (3) business days before closing.
4. Prohibition on Referral Fees
Section 8 of RESPA prohibits any person from giving or receiving a fee, kickback, or anything of value for the referral of settlement service business. RESPA also prohibits fee-splitting or receiving unearned fees for services not actually performed.
STX Lending does not pay or receive referral fees in connection with your settlement services. Any compensation received by affiliated entities is solely for services actually performed.
5. No Guarantees on Quality or Cost
STX Lending does not guarantee the quality, cost, or timeliness of services provided by any affiliated or non-affiliated settlement service provider. We encourage you to evaluate providers based on their reputation, fees, and service quality.
6. Additional Disclosures
6.1 Broker Compensation
As a mortgage broker, STX Lending (operating under Neighborhood Loans, Inc.) may receive compensation from the lender for originating your loan. This compensation will be disclosed to you on your Loan Estimate and Closing Disclosure as required by TILA and RESPA.
6.2 Lender-Paid vs. Borrower-Paid Compensation
STX Lending may be compensated through either lender-paid or borrower-paid compensation, but not both on the same transaction:
- Lender-paid compensation — The wholesale lender pays STX Lending a percentage of the loan amount. This is built into the interest rate offered to you.
- Borrower-paid compensation — You pay STX Lending directly at closing, which may allow for a lower interest rate.
Your loan officer will explain which compensation structure applies to your transaction and how it affects your rate and closing costs.
7. Acknowledgment
By proceeding with your mortgage loan application, you acknowledge that you have received and reviewed this Affiliated Business Arrangement Disclosure. This acknowledgment does not constitute consent to use any particular settlement service provider. You are free to select any provider of your choosing.
8. Contact Us
For questions about this disclosure or our affiliated business relationships, please contact:
STX Lending
1846 N Loop 1604 W Ste 205
San Antonio, TX 78248
Phone: (210) 750-6164
Email: compliance@stxlending.com
NMLS #222982
Regulatory Notice: If you believe a violation of RESPA has occurred, you may file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint or by calling (855) 411-CFPB (2372).