Published Monday, December 14, 2009
Hot Sheet, News Report for Brokers and Agents, Maryland Association of Realtors
RESPA RULES EFFECTIVE January 1, 2010--the following components of the new RESPA Rule will be go into effect:
- Good Faith Estimate: The new three page GFE, including disclosure of yield spread premiums and the tolerance restrictions, must be used.
- HUD-1: The new HUD-1 Settlement Statement has been expanded to three pages. It has been redesigned to look like GFE with additional cross references and a “cross-walk” chart comparing charges in the GFE with the final charges.
- 30-Day Cure Period: Loan originators will have 30 days from the date of settlement to reimburse the borrower for tolerance violations.
- Tolerance limitations on settlement charges: Certain services packaged by lenders will be granted a 10% change tolerance.
- Application Process: Lenders will have a one-stage application process with greater flexibility on selecting underwriting criteria.
For more information, please see HUD’s website at: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm or contact the MAR Legal Affairs Department at 1-800-638-6425.