Wed 19 Aug 2009
New RESPA Rule FAQ’s From HUD - Republished 8-19-09
Posted by karen under Compliance
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I just read the August 13 “New RESPA Rule FAQ’s” interpretations–and now it’s been updated on August 19. The way I see it, it creates MORE Questions than answers–so much for making things clearer.
The main reason to read the FAQ is for the INSTRUCTIONS on how to fill out the new Good Faith Estimate that is mandatory on January 1, 2010.
After reading it, it seems like there is LESS disclosure because it is mandatory that costs (by line item) be lumped together. For example, Page 2 under the heading “Our Origination Charge”, you only need to enter ONE NUMBER to include processing, applicaiton. admin fess, underwriting, doc prep, wire transfer fee, lender inspections, loan handling and other misc. fees…
…and the fun just keeps right on coming–as you go line-by-line to figure out what costs go where! If you’ve downloaded the August 13th one, throw it away!
http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm (link to the 8-19-09 RESPA FAQ)
