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NAR Video on GFE AND HUD

By
Real Estate Agent with Ann Arbor Market Center Keller Williams 242301

National Association of Realtors Government Affairs is interviewed by Realtor Magazine about the New GFE.  The video is titled Making Sense of the the New GFE and HUD1.  There may be confusion about the new form but NAR provides resources at www.REALTOR.org/government_affairs/respa.  If REALTORS have questions, they can email respa@realtor.org.

The good faith estimate was designed to disclose all costs and simplify the process and help consumers shop for charges.  This is an attempt to more easily track changes from the GFE from the lender to the HUD-1at the time of closing.  Good communication is encouraged between the closing agent, REALTOR, and lender. Watch the GOOD FAITH ESTIMATE/HUD1 VIDEO.

Like any government form, you may need a class to fill out this counter intuitive paperwork. Note he talks about the buckets and tolerances A. Zero Tolerance B. 10% Tolerance C. No Tolerance. 

Bottom line, if lenders' costs are above tolerances, there is a 30 day cure law. Lender issues check back to borrower.  My question, can lender walk from deal with no penalty and leave the borrower at the closing table with NO money?  This question was emailed. Stay tuned for response.

Posted by

 

Roy Kelley
Retired - Gaithersburg, MD

More confusing regulations with no requirement for signatures and no penalties for the lenders that stonewall the borrowers after settlement. I'd bet that the people that designed the forms have never conducted a real estate settlement.

Jan 25, 2010 09:58 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

We are ready to close on a dalapidated home in foreclosure for 38K.

The attorneys handling it for the bank want to see the GFE and HUD.

The lender is saying they are doing it as a vacant land loan because the house will be torn down.

The attorney is saying you still need a HUD if you are doing a loan.  (I agree)

Have you ever heard of such a thing?

What am I missing here?

Jan 25, 2010 10:49 PM
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Kathy:

It is good that they are supplying us with a video on these new forms.  I will have to watch it a couple of times.

 

Jan 25, 2010 11:37 PM
Sam Miller
RE/MAX Stars Realty - Howard, OH
Knox County Ohio Real Estate Specialist

I continue to shake my head at the new disclosures.  Great concept but weak design and no signature line...   

Jan 26, 2010 12:10 AM
Joyce Thomas
The Thomas Group Brokered by eXp Realty - San Tan Valley, AZ
Your Home Sold Guaranteed!

Thanks for the post.  This is great information that we all need to sell homes today.  Even though it is a little confusing like everything else, we will adapt.   Thanks again!

Jan 26, 2010 12:26 AM
Tony Grego, 317-663-4173 #1 Trade Association for Alternative Inv
REISA - 317-663-4173 - Indianapolis, IN

Right now HUD is allowing a ramp up time for everyone to get on the same page. I come across so many prospects that are very confused and now turned off. This form is going to hurt business until everyone is held accountable to use it

Jan 26, 2010 01:50 AM
Barbie Burke
Respect Realty - Tempe, AZ

Thanks for reminding us about this.  I have some local classes, and sometimes it is easier to watch a video from home and take notes on it.

Jan 26, 2010 08:59 AM
Mark Towler
Southeast Mortgage - Atlanta, GA

I had 20 hours of S.A.F.E. training, passed the state and national tests, and every time I think I have it figured out...someone brings up a point that makes me go hmmmm.

Jan 26, 2010 11:09 AM
Lupe Soto-Realtor
Premier Realty Assoc - Los Angeles, CA
Listing, Selling Burbank, San Fernando Valley LA

XLNT post. thank you for sharing this video, I will reblog. Lupe Soto, Feng Shui Realtor in Burbank, CA

Jan 26, 2010 01:14 PM
Thomas Feng
Coldwell Banker Residential Brokerage - Santa Clara, CA

Kathy thanks for posting the video for all of us to watch and try to get a better understanding of the new loan paperwork. Just watched it through, took notes, and will be going in tomorrow to discuss the new loan paperwork with my loan agent thanks a lot for the update.

Jan 26, 2010 02:56 PM
Jeff Colby
OmniQuest Media Labs - Obeo Distributor - Omaha, NE
President/CEO

I am certainly not envious of all the paperwork and policy restrictions Realtors have to abide by. How do you guys keep up?

Jan 26, 2010 10:14 PM
Lynn911.com ~ Dallas Real Estate Agent Top Team
Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

Kathy thank you soooooo much for this posts I have bookmarked for our clients and office to watch.  Save me allot of time.

 

Jan 27, 2010 03:30 AM
Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Lynn, good idea to get others up to speed

Jeff, we are hamsters in disguise

Thomas, your comment gave me an idea to have a loan officer to a meeting and pretend to be Susy buyer and see what happens....

Lupe, appreciate the reblog and Claudette, the comment

Mark, we are all hmmming on this 

Barbie, if your instructors have some more concrete info, please share

Tony, confusion will be overcome and like Joyce and Terry said, we will adapt

Yah Sam no sig line!  Roy, tehy missed the class on managemnet by walking around the bull pen.  Missy you have one heck of an interesting transaction there - hope you get paid extra commission!

 

Jan 27, 2010 08:06 AM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Thanks for sharing - will certainly take time and watch it ---- Have a great day!

Jan 28, 2010 10:24 PM
Kathy Toth
Ann Arbor Market Center Keller Williams - Ann Arbor, MI
Ann Arbor Real Estate Experts - Kathy Toth Team

Norma, hopefully they will work out the kinks - you too have a great day! 

Jan 31, 2010 01:46 AM