RESPA -tory Therapy

By
Real Estate Agent with Leading Edge Properties

RESPA-tory therapy is what we'll all need after the first time we have a closing with the new requirements and HUD-1, right?

Last week before the new changes went into effect, Mike Briel (our local go-to closing attorney and all around good guy) came in with his worthy assistant, Tiffany Hine, to give us a quick overview of the changes.  Fortunately, we are blessed with wonderful lenders and Mike is a great closing attorney, so the bulk of explanations to our buyers will be handled by them.  And we know that the more we use the new forms, the better we'll get to know and understand them. 

Today, I received the following message from Rick Boswell, our local Board of Realtors President and broker of the local Century 21 Franchise.  With his permission, I'm including his message on this post:

"As we turn the calendar and focus on the year ahead, I want to make sure everyone is aware of the regulatory changes regarding the Real Estate Settlement Procedures Act (RESPA), Final Rule, which went into effect on January 1, 2010.

As of this past Friday, HUD requires that lenders and mortgage brokers provide consumers with a new, standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents are also required to provide borrowers with a new HUD-1 Settlement Statement that clearly compares consumers' final and estimated costs.

The new RESPA rule became effective in January 2009, but HUD had provided a one-year transition period for the mortgage industry to incorporate these changes.

While the responsibility for the implementation of new GFE and HUD-1 documents primarily impacts the mortgage lenders and settlement services companies who must provide these documents to consumers, RESPA applies to everyone in the real estate profession. All brokers and sales professionals should be well aware of these changes to the documentation that your clients will receive from their lenders and at the closing table. This is especially important for those of you who have affiliated business arrangements such as a joint venture title or mortgage entity.

With this in mind, here are several online resources from the National Association of Realtors (NAR) and HUD for you to review:

· NAR's online RESPA homepage, which includes an archived presentation from Phillip Schulman, Esq., a partner with the law firm of K&L Gates in Washington, D.C., who specializes in RESPA and real estate law

· HUD's online RESPA resource center

· HUD's new RESPA rule seminar

· New Good Faith Estimate (GFE) and HUD-1 forms

Although HUD recently announced a 120-day restraint in enforcement for non-FHA originators and other settlement service providers who demonstrate good faith in implementing RESPA's new rules, the department still expects all loan originators to begin using the new GFE and revised HUD-1 beginning January 1, 2010.

Again, the intent of the new RESPA rule is to clarify disclosures and reduce closing costs for consumers, so it is in your best interests to familiarize yourselves with the new documents. This letter is not legal advice and is not a complete description of all changes to the rule.  Agents under their brokers direction should seek legal advice from an attorney familiar with RESPA to implement the required changes."

I, for one, am going to take a deep breath and get the RESPA-tory therapy I need! 

 

Posted by

askleadingedge.com

Amy Salisbury, Realtor/Owner

                                 amy@askleadingedge.com     www.askleadingedge.com

 Leading Edge Properties

130 Augustine Avenue, Unit 54, Charles Town, West Virginia 25414 

304.724.9191

Striving to provide excellent customer satisfaction in all things real estate related in the beautiful Eastern Panhandle of West Virginia, just an hour west of Washington, DC and Baltimore, MD.

Serving Jefferson County: Charles Town, Harpers Ferry, Shepherdstown.  Berkeley County: Martinsburg, Inwood, Bunker Hill, Falling Waters, Hedgesville, Gerrardstown.

Please feel free to email questions and comments!

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Shelly Whitworth 01/07/2010 10:12 AM
Topic:
Home Buying
Location:
West Virginia
Groups:
Realtors®
Best Business Practices
West Virginia Connection
Tags:
respa
good faith estimate
gfe
hud1
hud
new rules
new forms

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Rainmaker
68,415
Shelly Whitworth
MorSystems.com - Carmel, CA

This is worth reblogging! I have a ton of confused clients this will help, thank-you!

 

Shelly Whitworth
www.MorSystems.com

Jan 07, 2010 10:11 AM #1
Rainmaker
472,839
Colleen Fischesser Northwest Property Shop
RE/MAX Advantage | Managing Broker - Chelan, WA
A Tradition of Trust in the Pacific NW since 1990!

Amy, this is a superb resource for any agent wanting to famliarize themselves with the changes. As they say, the only thing consistent is change and I think we'll continue to see many for months and probably years to come.

Jan 07, 2010 10:12 AM #2
Rainmaker
2,486,716
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Amy..great information for all of us; and I need to also get some RESPA -tory therapy.

Jan 07, 2010 10:28 AM #3
Rainer
64,171
Amy Salisbury
Leading Edge Properties - Charles Town, WV
West Virginia Realtor/Jefferson/Berkeley

Shelly -  Thanks!  Don't think I've been "re-blogged" before!!

Colleen - I take absolutely no credit for this.. Rick our Board pres put it together...thanks heavens!

Rebecca - These links are so helpful, again, thanks Rick!

Jan 07, 2010 10:46 AM #4
Ambassador
726,937
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Very nicely summarized Amy!

...we all need a "Board Pres Rick" to help us with things like this !!! lol

Cheers Amy !

Jan 11, 2010 08:17 AM #5
Rainmaker
263,404
Michael Bergin
Coldwell Banker Residential Brokerage - ABR - SRES - Alexandria, VA
Northern Virginia Real Estate

Ann -

I did one of these workshops myself with a local settlement attorney.  Shouldn;t this count as a 'continuing education class?"

Michael

Jan 11, 2010 11:33 AM #6
Rainer
64,171
Amy Salisbury
Leading Edge Properties - Charles Town, WV
West Virginia Realtor/Jefferson/Berkeley

FunnyBrit - We have been fortunate to have some wonderful people the last several years serve as Board Pres...Rick is the the latest in that line.  When I read his email, I immediately contacted him for permission to use it in my blog.  He graciously allowed me to...

A big shout out to my Board: the executive committee, the directors and admin are all AWESOME!

Cheers to you Sheldon, I'm headed over to your blog shortly to read about RainCamp!

Michael - You may know the hoops we must jump through in WV to get classes approved for continuing ed...its not pretty...but whether or not you get CE credit, these workshops are vital to our education!  Glad you got to attend one!

Jan 12, 2010 10:33 PM #7
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Rainer
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Amy Salisbury

West Virginia Realtor/Jefferson/Berkeley
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