New HUD Changes
Basic Things You Should Know!
• The New HUD effective date is January 1, 2010
• One of the primary purposes of the new HUD is to improve upfront disclosures on the GFE, and limit the amount estimated charges can change. It is anticipated that these changes will help consumers save nearly $700 in closing costs.
• The Good Faith Estimate has been reduced from four to three pages. These pages include an instructional page to help borrowers better understand their loan offer.
• To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement
Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE.
• The new HUD will also require lender payments to mortgage brokers (Yield Spread Pre-miums) to be disclosed in a more meaningful way.
• Loan originators will be required to provide borrowers the Good Faith Estimate three days after the loan originator’s receipt of all necessary information.
• HUD will also allow lenders and settlement service providers to correct potential viola-tions of RESPA’s new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or vio-lations and repay consumers any overcharges.
• Sections of the HUD that have significantly changed: 800, 1100, 1200.
Here is a pretty version below as well :)
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