Clearing up NEW HUD questions with Carolyn Hubbard at Great American Title Agency

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Education & Training with Solutions Real Estate

Carolyn taught another class for Realtos and Loan Officers about the New HUD and GFE.  Here are the questions and answers from the BEST Source for HUD Enlightenment!

Thanks for attending the Great American Title Agency Class yesterday on the New GFE and HUD. As promised I’ve researched answers. Hope you find this information helpful.

1) How can we get a HUD for a short sale? Nothing changes, we can prepare a short sale HUD/Audit for your seller, in about 15 minutes, just let us know.

2) Attached you’ll find a Current Rate Card. Get in touch with one of our escrow officers and we’ll go back over the basics of reading it. Remember, “It’s not hard, just different”.

3) Does the GFE have to be reissued if you have a 45 day close? Look with me at page 1 of the GFE, “Important dates

     1. The interest rate for this GFE is available through___________(this date has to be a minimum of 30 days from the date of the GFE). After this time, the interest rate, some of your loan Origination Charges, and the monthly payment shown below can change until you lock your interest rate.

     2. This estimate for all other settlement charges is available through .

     3. After you lock your interest rate, you must go to settlement within days (your rate lock period) to receive the locked interest rate.

     4. You must lock the interest rate at least days before settlement.” Remember, that ole’ real estate phrase: “The most restrictive, restriction, restricts.” We can close sooner, at a lower cost. The GFE just needs to reissued if the timeframe expires or costs are out of tolerance (see page 3 of GFE).

4) What’s a YSP (Yield Spread Premium)? Yield Spread Premiums (YSP) were most commonly used to help borrowers access specific interest rates by paying cash incentives from the lender to the mortgage originator at closing. There were circumstances where most or all of the compensation paid to a mortgage broker was paid through YSP. The borrower was able to conserve their cash reserves and pay little or no up front fees. Although they were paying a higher monthly payments the borrower would save thousands in acquisition cost. http://en.wikipedia.org/wiki/Yield_spread_premium#cite_note-0 5) What do you mean, “Loan officers do not have to disclose the breakdown on bundled fees?”. All origination charges for lenders and mortgage brokers included in Block 1 of the GFE under “Our Origination Charge”, according HUD may not itemized separately. Check out, “Your Adjusted Origination Charges, Block A on page 14 of the booklet “Shopping for Your Home Loan” available: http://portal.hud.gov/portal/page/portal/HUD/documents/Settlement%20Booklet%20December%2015%20REVISED.pdf

Thanks again for attending the class and giving Great American Title Agency an opportunity to serve you. As always, should you have any title or escrow questions, we’re here to “Help You”.

Taking the East Valley by Storm,

Carolyn Hubbard Vice President,

Stapley Center Branch Great American Title

Phone: (602) 324-2080 Fax: (480) 483-0724 Cell: (480) 390-5148

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