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The New HUD: A Big Part of the Log Jam came from Title Companies

By
Real Estate Agent with Manning & Company

If I am a closer or support to a closer it is probably a good idea to step on up and take a quick overview of the new GFE-HUD before it is mandatory. Instead of working off rumors or little bits and pieces of information it might just be a good idea to get a feel for how this new system works. Word has it there are (and were) a ton of seminars on the subject – some for agents, some for LO’s and even a few for title companies.

Headlines for the new GFE-HUDThere has to be a memo out there from the mother ship and there have been classes offered by the boards and all kinds of title servicers since its original unveiling. The whole world of real estate has been talking about it for the past six months and it was officially unveiled in the 4th quarter of 2009 and mandatory after January 1st 2010.

If my job is to assemble the data, match the blanks on the HUD with the original GFE and get it approved by all the powers that be then it might be a good idea to find out how it works. The experiences in the past few days – namely the first Closing Season since the kick off of the new GFE-HUD – has been as much a wake up call for the lending community as it has been a hands on education on making sure the HUD is delivered as intended. No question, there were some issues coming out of the lending community but the biggest part of the delays and misunderstandings came from the title company side of the transaction.

The good news is that the late learner have already taken this baptism by fire and we are through the first round – better yet, first real closing season – and there is a better than even chance that those that decided to learn the new HUD on the anvils of experience have the callouses on their hands.

Posted by

Chris Manning with Manning & Company Dallas

Roy Kelley
Retired - Gaithersburg, MD

Good post. Thanks for sharing your thoughts. Hopefully, more will be taking those available classes. Hope you are having a great weekend.

Jan 30, 2010 11:32 PM
Chris Manning
Manning & Company - Dallas, TX
Innovator and Explorer

Thanks for your post, Roy. It was a little strange that I had to explain the new HUD to several closers - I went to a lunch seminar to get familiar; I had no idea I was going to come out an instrutor.I took the course just to get a feel for the issues. They were all pretty straight forward and it was informative but it was an overview, not a detailed "this is how it is done" course. The good news is that the first wave of closings are behind us and next month promises to have a few more educated closers out there. (Not because of me)

Jan 31, 2010 02:18 PM