This morning the Mid-South Chapter of CRS had their Spring breakfast. It was a wonderful event. The food and decorations that Clara Yerger and Linda Norton provided were outstanding as always. The people attending were terrific. But the best thing was ...
our Speaker, Lisa Reid of Magna Bank! Now Magna is part of one of those huge networks being owned in major part by a large real estate firm. But I digress. Lisa did a very interesting and informative condensed version of what we are all facing with RESPA.
As we all know, RESPA change went into effect January 1, 2010 but as Lisa put it Lenders and Closing Agents have been given a hall pass. But that hall pass expires April 1, 2010. It was by far a very interesting lecture. Did you know that if your buyer uses a vendor off of the Preferred Vendor List, that the cost of that service can not deviate more than 10% from the cost disclosed on the GFE. I didn't know that. But the Preferred Vendor List (which some people don't realize) is not mandatory as some lenders think.
Also the Origination Fees on the GFE cannot flutuate. Did you know that if your client mails in their loan application then the GFE has to be delivered by mail ... and you have to add 3 days to the 3 days that the purchaser has to rescind. If you send it by e-mail, because they applied on-line, then everything has to be sent to the applicant by a secure password. They are saying that it is best now that the loan officer see the applicant in person rather than the ways we've been doing it. I wonder how you get it to them if they do it over the phone?
Check out a RESPA class real soon. The rules have changed... I don't know if it is for the good yet, but it has changed and we need to be up on it.
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