|Changes to RESPA|
As you have likely read the Department of Housing and Urban Development (HUD) made changes to the Real Estate Settlement Procedures Act (RESPA) that are intended to make it easier for borrowers to understand the settlement process.
Here are some important changes taking effect 1-1-10. It establishes a standard 3 page Good Faith Estimate (GFE).
Limits the fee associated with the GFE to the cost of the credit report.
Establishes a 3 page HUD, with the 3rd page for the borrower to compare estimated charges from the GFE to the final charges from the HUD.
Also Eliminated the 1% cap on FHA origination fees.
If you would like additional information on this topic here is a link, http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
I will keep you updated on any new changes,
Lisa Scanlon, CSA