RESPA Reform: Are you Ready?
With RESPA reform around the corner are you prepared for the up and coming changes?
Summary of Changes
On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 settlement statement that clearly compares consumers' final and estimated costs.
What becomes effective January 1, 2010
1) Revised Good Faith Estimate (GFE)
2) GFE tolerances on settlement costs
3) Revised Settlement Statement (HUD-1)
4) Revised definitions for application, Good Faith Estimate, and Mortgage Broker
5) Additional definitions for changed circumstances, origination services, loan originator, prepayment penalty, third party, title service and tolerance.