RESPA Rules to Give Consumers “Good Faith Estimates” Home Loans and Related Mortgage Fees Set to Take Effect on January 1

December 31, 2009 at 8:41 pm Leave a comment

New rules clarifying the costs of a home loan will take effect on January1, 2010.  The new rules, enacted by the Department of Housing and Urban Development pursuant to the Real Estate Settlement Procedures Act, place new requirements on lenders and brokers to provide house shoppers with better estimates of the fees and charges they will incur at closing and during the life of a home loan.  Under the new rules, mortgage loan brokers and lenders:

  • Must provide prospective borrowers with estimate forms within three days of receiving a mortgage loan application;
  • Cannot increase the origination fee provided in the estimate;
  • Can only increase non-origination charges by up to 10% (e.g. title research); and
  • Use the forms that inform prospective purchasers of their right to shop around for title insurance.

Settlement firms will be required to use a new HUD-1 form, which will show the difference between initial estimates and the final charges consumers actually pay.

Entry filed under: Uncategorized.

White House Has a Stocking Stuffer for Fannie Mae and Freddie Mac: Transfer of Paper Check Processing from Atlanta FRB to Cleveland FRB Marks Beginning of New Funds Availability Era

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Enter your email address to follow this blog and receive notifications of new posts by email.

Produced & Maintained By

Stinson Leonard Street Logo

Categories

A legal resource for Banking & Financial Services

Archives


%d bloggers like this: