The New HUD

By
Real Estate Agent with Private Label Realty ( Denver metro area, Colorado EA1321548

THE NEW HUD

 

I took a continuing education  class about the new HUD that will be in use at the beginning of 2014.  Are you ready for it?  Is your lender ready for the change?  Is your title company or escrow company ready? 

Why, you ask?  Well, the new HUD that will be used at closing is much different than what we currently are accustomed to.  The software your lender and title/escrow companies currently use will not work with the new changes.  Are they working on making the changes?  Will you be able to take care of your buyers and sellers next year?  My preferred lender and title company have already started modifying their current software. 

For the first time, HUD will have a boss to "report to".  The Bureau of Consumer Financial Protection, otherwise know as the CFPB, was established by Congress through the Dodd-Frank Wall Street Reform and Consumer Protective Act, known as the Dodd-Frank Act.  Their responsibility is to educate, enforce and study the consumers, financial service providers and consumer financial markets.  It was also established to protect the consumer.  The CFPB will monitor the financial market for new risks to the consumer.  They will write laws and take consumer complaints!  Yes, that's right.  Take complaints!  The CFPB has the exclusive authority to issue regulations and enforce consumer protection laws such as Truth-in-Lending, Electronic Fund Transfers Act, and RESPA, to name a few.

The GFE (Good Faith Estimate) and the HUD-1 and HUD-1A will be replaced by Settlement Disclosures.  What we have been used to, looks completely different.  The laws are not all written yet.  A final Rule is supposed to be done by January 21,2014, however since they are only one third through the 3500 pages, there will most likely be an extension.  Currently 250 new laws have been written, of which 100 of them are mortgage related.

My suggestion is that you take a class on the new HUD changes and follow up with your current vendors of choice to make sure they know the changes are coming and to find out if they will be ready.

 

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Keller Williams Real Estate, LLC

Broker Associate, CNE, CRS, GRI, SFR

Servicing buyers and sellers in the Denver metro area since 1993

Three easy ways to contact me:

email me directly Dawn@downhomeindenver.com

visit my website to search for homes or find the value of what your home is currently worth visit: www.DownHomeInDenver.com

call or text me directly on my cell: 303-332-8025

The choice is yours.  Let my expertise work for you!  Servicing the Denver Metro area/ Aurora, Centennial, Denver, Englewood, Greenwood Village, Littleton, Lone Tree and Parker

*** Voted one of Denver's 2011, 2012 & 2013 "FIVE STAR REAL ESTATE AGENTS" by an independent survey of recent homebuyers to find the best in client satisfaction.***

                                               

 

Comments (10)

Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

This should be a PUBLIC post in my opinion.  So well-written and something I'd like to email to a few colleauges I work with, and ask: "Hey did you know about this?"  I'll look for classes in my neck of the woods too!  Good reminder.

Nov 07, 2013 01:40 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Carla ~ I'll make this public!!

Nov 07, 2013 08:08 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Coincidentally, I was at a CE class today and met with the title rep and escrow officer afterward.  We talked about the coming changes for the HUD. Wow!

Nov 07, 2013 12:17 PM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Jan ~ "Wow" is right! Hopefully your reps are up to date with the changes.

Nov 07, 2013 12:53 PM
Dan Spencer
Aspen Lane Real Estate - Aurora, CO
Your Colorado Home Source

Thanks for the heads up Dawn. I need to look into this

Nov 07, 2013 01:01 PM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Please do Dan.  The Hud is completely changed.  Nothing looks the same!

Nov 07, 2013 01:40 PM
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Dawn, in terms of getting prepared I think most of my lenders are on board with that, but also are a little wary of the changes.  So much has been changed in the last couple of years and in my opinion they've not really benefited consumers....time will tell.

Nov 08, 2013 08:09 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Nick ~ I agree.  The HUD as it stands, is confusing.  Why did they have to put the cost of the title insurance as a credit on the buyer side, and then also put it as a credit on the buyer side as well????  That's the government for you!!!  I'm not sure if you have seen the new form, but absolutely no similarity at all.

Nov 08, 2013 08:22 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Dawn, Really good information for us. Thanks to Carla for bringing it to my attention. Now to look for a class on the new HUD. Thank you.

Nov 09, 2013 10:58 AM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Margaret ~ there are so many changes!  And HUD now has a boss!

Nov 09, 2013 03:02 PM