The
Department of Housing and Urban Development’s Summary:
This
final rule amends HUD’s regulations to further RESPA's purposes
by requiring more timely and effective disclosures related to
mortgage settlement costs for federally related mortgage loans
to consumers. The changes made by this final rule are designed
to protect consumers from unnecessarily high settlement costs
by taking steps to: improve and standardize the Good Faith Estimate
(GFE) form to make it easier to use for shopping among settlement
service providers; ensure that page 1 of the GFE provides a clear
summary of the loan terms and total settlement charges so that
borrowers will be able to use the GFE to identify a particular
loan product and comparison shop among loan originators; provide
more accurate estimates of costs of settlement services shown
on the GFE; improve disclosure of yield spread premiums (YSPs)
to help borrowers understand how YSPs can affect borrowers' settlement
charges; facilitate comparison of the GFE and the HUD-1/HUD-1A
Settlement Statements; ensure that at settlement borrowers are
aware of final costs as they relate to their particular mortgage
loan and settlement transaction; clarify HUD-1 instructions; expressly
state that RESPA permits the listing of an average charge on the
HUD-1; and strengthen the prohibition against requiring the use
of affiliated businesses. This final rule follows a March 14,
2008, proposed rule and makes changes in response to public comment
and further consideration of certain issues by HUD. In addition,
this rule provides for an appropriate transition period. Compliance
with the new requirements pertaining to the GFE and settlement
statements is not required until January 1, 2010. However, certain
provisions are to be implemented upon the effective date of the
final rule.
Until
January 1, 2010, lenders have the option of using either the old
GFE or new GFE. Lenders will dictate which GFE is used and you
as an agent must be prepared.
New
HUD
New
GFE
Final
RESPA Rule
Interactive
Revised HUD-1 Instructions
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