Tonight a loan officer friend who works at a bank told me how the bank gets around some of the new RESPA issues. He says that if the bank makes a mistake (which with this law is about 110% possible) then they later find a way to turn the loan down so that they are not in violation and don't have to pay the fee.
I am so anti-government right now. I hear loan officers saying that sometimes they will spend 3-4 hours on the forms to make sure they are correct. Of course, when they are correct, they are nonsense. In many situations the client does not even sign the original form but waits until the loan has been reviewed by RESPA Police. We have submitted loans to one bank that is taking 5 days to review the RESPA before the loan goes to underwriting.
My company has submitted loans to 11 different banks using the new forms and none of the banks agree on how the forms are to be completed. We have having to learn to please different banks the way they interpret the forms. Today a bank told me that they are getting changes from HUD every day about these RESPA forms. I would really like to meet the person(s) who designed this nightmare and see if I can figure out what the heck they were thinking.
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