NEW RESPA GUIDELINES WENT INTO EFFECT ON JANUARY 16, 2009
The new Real Estate Settlement Procedures Act (RESPA) guidelines are now officially enacted as of Friday, Jan. 16, 2009. However the Required Use Section 9 changes have been put on hold for 90 days pending a review by HUD which was prompted by the National Association of Homebuilders lawsuit.
The new Good Faith Estimate (GFE) and Housing & Urban Development Settlement Statement (HUD-1) can now be used but won't be required until next year. However if a lending institution does use the new Good Faith Estimate form then the new HUD-1 and HUD-1A must be used as well in order to be compliant with the new rules.
If you are a lender or title agent please make sure you and your staff are educated on these changes because the new rules will create a substantial risk for litigation for companies who are unaware of the new rules.
Comments
Mr. Sterbcow,
I am a licensed CPA, mortgage broker and real estate broker in FL.
I am being told that the law changed recently that would prevent me from collecting both a real estate commission and a mortgage broker commission on the same transaction even if that fact was adequately disclosed.
Is that true under the RESPA guidelines or could that possibly be a new state law if it exists at all?
Are there, in fact, prohibitions to one being compensated as the real estate agent as well as the mortgage broker on the same real estate deal?
Any thoughts you could provide would be greatly appreciated.
Keith Pearce
Posted by: Keith Pearce | August 3, 2009 5:03 PM
The new guidelines are causing more problems than they are solving. For example, one of my clients has to wait 7 days before they can close. This is a military family with a very tight schedule due to deployment. Why do they have to wait? This delay due to the fact that their lock in rate was LOWER then the initial rate! So the bank issued a new disclosure that the rate went down (buyer saved money). Where is the common sense in this?
Now due to this disclosure issue, the buyer now has to fork out additional money to rent a hotel for one week. Where is the consumer protection here!
Posted by: Sean Schroeder | September 2, 2009 9:01 PM
Mr. Sterbcow,
We pre-screen leads and refer them to partners who have purchased exclusive territories. Can a lead generation company charge a fee per pre-approval?
Then it is the lenders job to close the deal.
Thanks!
MIchael
Posted by: Michael Cherniawski | September 16, 2009 1:59 PM
Thanks for the news on RESPA and like the list of respa links on your right side bar topic collection.
Posted by: Andrew Mooers | January 11, 2010 2:52 PM
I am a mortgage broker, is it true that by mid April, even if we disclosed all information to a client regarding the rebate and fees on the new G.F.E., that we will no longer be able to keep the rebate, the way we are keeping it now? Is this correct?
Posted by: ADRIANA ROCHA | March 9, 2010 7:10 PM