RESPA Reform Tips

RESPA Reform Tips

Here are some tips for signing agents who will be dealing with the new HUD settlement statements and Good Faith Estimates.

You may continue to see the old HUD and GFE through out the spring if the loan application was taken prior to 1-1-10. Any applications taken 1-1-10 and after are required to use the new forms. The new GFE is pretty much unchanged. The new HUD is longer and has more information but is easier for the borrowers to compare closing costs. The first page is the same, the 2nd page after each charge is listed the line # for the corresponding item from the GEF appears. Line 1101 will show the total of the charges reflected in the 1100 series. The same for line 1201 and 1301. The fees will be broken down for that section. The 3rd page compares GFE and HUD charges at the top. The bottom of page 3 goes over all the loan terms. Also if the lender has exceeded any tolerances there will be a lender credit listed on the HUD or the lender has 30 days to issue a refund check to the borrower.

I hope these tips help.


Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com