Regulation X
RESPA REFORM-Mortgage Disclosure Improvement Act [MDIA] Effective January 1st, 2010
A Summary:
HUD will require that lenders and mortgage brokers provide borrowers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. New Good Faith Estimate form
Closing agents will also be required to provide borrowers a new HUD-1 settlement statement that clearly compares borrowers' final and estimated costs. New HUD-1 settlement statement
An Overview:
•1. "Early Disclosure"- The Lender must give the borrower a GFE of costs within three business days of applying for the loan.
•2. Annual Percentage Rate (APR) to be show in the GFE. The APR is the total amount of cost borrower to pay that is expressed as an annualized figure.
•3. The closing may not take place until expiration of a 7-day waiting period after the borrower receives the early disclosure.
•4. If the final APR at loan closing varies more than 0.125% (1/8 of one percent) from the initial APR at "Early Disclosure", the lender must provide the borrower a new disclosure at least three business days before closing.
The Goal:
Borrowers to have a better idea of exactly what they are paying for at closing.
Lenders to stay within the range of their GFE.
Questions and Answers: Complete set of FAQ's from the HUD web site
For Complete Details: This is the US Department of Housing's web site. check here
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