Posted On:
January 29, 2010
RESPA: UPDATED RESPA RULE FAQs RELEASED ON JAN. 28, 2010
The U.S. Housing and Urban Development's Real Estate Settlement Procedures Act (RESPA) Division released new updated FAQs on Jan. 28, 2010. The new RESPA frequently asked updated question and answers (FAQs) are in bold.
One of the new questions asks whether a loan originator can require the use of its affiliate company for the tax or flood certificate. The updated RESPA guidance says that the loan originator may not require the use of its affiliate for the tax service or flood certificate, but a loan originator may require the use of a non-affiliated provider.
Comments
so would the same rule allow the lender to rquire the use of one of three non affiliated title insurance companies to issue the lender policy and close the loan portion of the transaction?
Posted by: ben williams | February 24, 2010 10:14 AM
The light bulb just clicked on!! Thank you. I now understand why some lenders require those two fees to be shown as GFE 6 fees.
Posted by: Kelly Milligan | August 20, 2010 5:53 AM