{"id":30079,"date":"2010-01-21T14:19:24","date_gmt":"2010-01-21T14:19:24","guid":{"rendered":"http:\/\/forestridgevoice.com\/2010\/01\/21\/respa-reform-more-informed-customers\/"},"modified":"2019-04-23T20:54:55","modified_gmt":"2019-04-23T20:54:55","slug":"respa-reform-more-informed-customers","status":"publish","type":"post","link":"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/","title":{"rendered":"RESPA REFORM = MORE INFORMED CUSTOMERS"},"content":{"rendered":"

Beginning January 2010, HUD will require all lenders and mortgage brokers to provide borrowers with a new RESPA Reform Good Faith Estimate (GFE) <\/a>on any application taken on or after January 1, 2010 wiht a property identified.\u00a0 Settlement agents and attorneys will be required to provide borrowers with a the new RESPA Reform HUD-1 settlement statement <\/a>that closely aligns with the new GFE.\u00a0 RESPA Reform was enacted by the U.S. Department of Housing and Urban Development (HUD) with the intent to help protect borrowers applying for home financing by standardizing the industry and providing for a more thorough explanation and disclosure of key loan terms and settlement charges.\u00a0<\/p>\n

The new GFE will contain\u00a0three pages. \u00a0 Page 1 will summarize key loan information, details escrow information and displays the total estimated settlement charges associated with obtaining the mortgage so the borrower can compare loan terms.\u00a0 Page 2 estimates total settlement charges associated with obtaining the mortgages, breaking them down into 11 blocks of charges.\u00a0 The GFE does\u00a0\u00a0not provide a figure that represents the downpayment or the cash the borrower will need to bring to the closing.\u00a0 Page 3 is an instructional page designed to help borrowers understand their loan and its associated fees.\u00a0 Borrowers can use the shopping guide to document and compare charges from other lenders.\u00a0<\/p>\n

The new HUD 1 (Settlement Statement) will also increase from two to three pages and will include a side by side comparison chart to help borrowers compare final loan terms disclosed on the lastest GFE with teh charges as shown on the HUD 1.\u00a0 Page 1 contains only minor formatting changes.\u00a0 Page 2 renumbers and consolidates many charges differently than in the past and displays all charges as dollar amounts, not percentages.\u00a0 Page 3 has been added to allow borrowers to compare charges disclosed on the latest GFE with actual costs charged on the HUD 1. This side by side comparison displays charges in categories.<\/p>\n

In the event the HUD 1 shows an increase in a charge *( to a lender and\/or third party fee) versus what was reflected on the latest GFE, the closing may be delayed.\u00a0 The lender will need time to work with the setlement agent or attorney to determine if the change requires a revision to the GFE.\u00a0 If a new GFE is required, it must be provided to the borrower within three business days AND at leas one day prior to closing.\u00a0 This gives the borrower time to review and understand the increased charges prior to closing.\u00a0 The closing may be extended up to seven business days if\/when the increased charge(s) cause the APR to increase more than .125%.<\/p>\n

A fee increase can only be charged if it occurred due to what HUD refers to as a “valid changed circumstance.” For example, if the borrower choose to make a significant change to his\/her loan (such as a product change) or if a full review of the appraisal results in discovery that a survey is required, a “valid changed circumstance: has occurred, and the associated fee increases can be charged to the borrower (if a new GFE is properly issued that reflects the new fees).\u00a0 Another example is if a power of attorney is needed for a borrower who cannot attend a closing.<\/p>\n

This RESPA Reform applies to all open-end and closed-end loans but not to home equity lines of credit.\u00a0 The applicant must receive his or her initial disclosures before upfront fees can be collected from the applicant.\u00a0 The only exception is the credit report fee which can be collected at application.\u00a0 A GFE is NOT A LOAN COMMITMENT.\u00a0 It is an estimate of the total charges associated wtih obtaining the loan, regardless of who is repsonsible for paying each of those charges, but neither the borrower nor the lender is obligated to enter into the loan.\u00a0 If a charge on teh HUD 1 is less than the charge on the GFE it will not cause a delay in the closing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Beginning January 2010, HUD will require all lenders and mortgage brokers to provide borrowers with a new RESPA Reform Good Faith Estimate (GFE) on any application taken on or after January 1, 2010 wiht a property identified.\u00a0 Settlement agents and attorneys will be required to provide borrowers with a the new RESPA Reform HUD-1 settlement<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":5759,"featured_media":130092,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[11767],"tags":[],"yoast_head":"\nRESPA REFORM = MORE INFORMED CUSTOMERS - BHHS EWM Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RESPA REFORM = MORE INFORMED CUSTOMERS - BHHS EWM Realty\" \/>\n<meta property=\"og:description\" content=\"Beginning January 2010, HUD will require all lenders and mortgage brokers to provide borrowers with a new RESPA Reform Good Faith Estimate (GFE) on any application taken on or after January 1, 2010 wiht a property identified.\u00a0 Settlement agents and attorneys will be required to provide borrowers with a the new RESPA Reform HUD-1 settlementRead More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/\" \/>\n<meta property=\"og:site_name\" content=\"BHHS EWM Realty\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/EWMRealtyInternational\" \/>\n<meta property=\"article:published_time\" content=\"2010-01-21T14:19:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-04-23T20:54:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ewmrealestate.com\/blog\/wp-content\/uploads\/2019\/06\/BHHS-On-Solid-Background.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"376\" \/>\n\t<meta property=\"og:image:height\" content=\"376\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"pattireid\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"pattireid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/\"},\"author\":{\"name\":\"pattireid\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#\/schema\/person\/3884199c9616c95232f0602dd52df5eb\"},\"headline\":\"RESPA REFORM = MORE INFORMED CUSTOMERS\",\"datePublished\":\"2010-01-21T14:19:24+00:00\",\"dateModified\":\"2019-04-23T20:54:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/\"},\"wordCount\":656,\"publisher\":{\"@id\":\"https:\/\/ewmrealestate.com\/blog\/#organization\"},\"articleSection\":[\"EWM News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/\",\"url\":\"https:\/\/ewmrealestate.com\/blog\/respa-reform-more-informed-customers\/\",\"name\":\"RESPA REFORM = MORE INFORMED CUSTOMERS - 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