While I see the point for the GFE HUD system, I really do, there are so many rules and regs on this thing that even the simplest of tasks is now a massive undertaking!
What it is doing to the broker market is unbelievable. Now a brokers fees are "hidden" in the 800 section under the "origination" and "discount" sections, no longer are the YSP amounts shown. That is scary since the borrower has no clue which entity is getting their money. When we get loan instructions without a "break down" of items for line 801, it is nearly impossible to balance a HUD-1 without assistance and a ton of math determining what gets a check written, and what goes direct to the broker!
Another issue we've run into is that if we've drafted a short sale HUD for the seller and somehow the buyers lender gets that draft. More often than not, a buyers fees are not complete on those drafts, but we are getting held to the fees done for a SELLER SIDE ONLY draft HUD. Even if we've used an "old" style HUD just to project seller #'s. This happened on a case we are closing this week. The seller side draft for short sale has been in circulation for months now. It has our line by line fee structure on it. It's caused a wealth of issues in trying to get the final HUD drafted for the purchase.
While my office has gone to sending out only seller #'s on draft GFE HUDs for the short sale, not everyone is this proactive. We may get held to someone elses numbers on a draft HUD submitted 6 months ago, before GFE laws took effect.
Growing pains, gotta love it.
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