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Keeping Bank Secrets: Things you Can Go to Jail for Telling;
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Critical Issues on Certificates of Deposit;
Deborah Crawford

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S.A.F.E. Act - Auditing for Compliance;
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September 22
FinCEN's Beneficial Owners Proposal: What It Can Mean for You;
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September 23
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#1244624 - 09/03/09 12:12 PM Re: RESPA changes 1-1-10 [Re: QCL]
Kahola Offline
Platinum Poster

Registered: 05/03/01
Posts: 712
Loc: Scottsdale, AZ. 85255
A broker question ---- If a broker prepares a GFE and then the bank also prepares one, because we are ultimately responsible for the accuracy of the GFE,and the bank's GFE fees are not the same as what the broker disclosed,which GFE is reflected on the HUD-1?

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RESPA
#1244906 - 09/03/09 03:13 PM Re: RESPA changes 1-1-10 [Re: Kahola]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
The lender is ultimately responsible for the GFE and HUD-1/1A. The bank needs to ensure that the ONE that is provided to the applicant is accurate. If the broker's is different, why? If your's is wrong, revise yours to be right. If the broker's is wrong, issue your own (correct) one. If neither is right, issue one that is correct.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1244960 - 09/03/09 04:04 PM Re: RESPA changes 1-1-10 [Re: David Dickinson]
Reads Regs Offline
Diamond Poster

Registered: 11/15/04
Posts: 2010
Originally Posted By: David Dickinson
I emailed HUD telling them their link doesn't work (from the first announcement) and asking them to announce the changes. I also asked them to let us know what is changing. We'll see.


I just visited their web site and now the FAQs say lasted update 9/3/09 and they are now 27 pages. I haven't had the time to see what changed from the 9/1 to the 9/3 version.

http://www.hud.gov/offices/hsg/ramh/res/faqsept109final.pdf
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

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#1245039 - 09/03/09 04:43 PM Re: RESPA changes 1-1-10 [Re: RR Joker]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
I got an email back from HUD thanking me for pointing out the incorrect link. It also said they would forward my comments bout the FAQ updates. We'll see if I get a response to that.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1245042 - 09/03/09 04:46 PM Re: RESPA changes 1-1-10 [Re: Reads Regs]
DD Regs Offline
Power Poster

Registered: 11/10/08
Posts: 4068
Loc: Somewhere in the middle
How many Final FAQs will there be crazy
_________________________
Everything happens for a reason. Sometimes that reason is you're stupid and make bad choices.

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#1245060 - 09/03/09 04:51 PM Re: RESPA changes 1-1-10 [Re: David Dickinson]
QCL Offline

Power Poster

Registered: 05/23/02
Posts: 6177
Loc: NW IL
BTW - I think it's hilarious that this site http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm says "Content current as of 2 August 2009"
_________________________
Who's evolved? - http://www.amazon.com/Night-At-The-Museum-Scene/dp/B00K5VDFR4

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#1245068 - 09/03/09 04:55 PM Re: RESPA changes 1-1-10 [Re: QCL]
DD Regs Offline
Power Poster

Registered: 11/10/08
Posts: 4068
Loc: Somewhere in the middle
And this same gov't wants to run our health care crazy Oops, that's comment for the cooler. smile
_________________________
Everything happens for a reason. Sometimes that reason is you're stupid and make bad choices.

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#1245079 - 09/03/09 04:58 PM Re: RESPA changes 1-1-10 [Re: DD Regs]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
I reviewed the 9/3/09 update to the FAQ's. Here's what's new from the 8/28/09 update:
Page 4:
GFE - Seller Paid items - added #2
Page 12:
GFE - Block 5 - added #4
Page 15:
Section 4&5 - Right to cure & tolerance violations - added #9
Page 17-18
HUD-1 - General - added #9 & 10
Page 18:
HUD-1 - 200 Series - added #2
Page 20:
HUD-1 - 800 Series - added #6 (this is the one they removed from the 9/1 update. Now it's back!) I think this is an incorrect answer and believed that's why they removed it. Grrr!
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1245193 - 09/03/09 08:21 PM Re: RESPA changes 1-1-10 [Re: RR Joker]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49720
Loc: Galveston, TX
As I have always said:

DOG spelled backward is GOD

HUD and spelled backward is DUH!
_________________________
The opinions expressed are my own, take them or leave them.

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#1245250 - 09/04/09 08:39 AM Re: RESPA changes 1-1-10 [Re: DD Regs]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40605
Loc: Bloomington, IN
Originally Posted By: DD Regs
How many Final FAQs will there be crazy


One. The last update to be released. laugh laugh
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1245721 - 09/04/09 02:24 PM Re: RESPA changes 1-1-10 [Re: Dan Persfull]
Reads Regs Offline
Diamond Poster

Registered: 11/15/04
Posts: 2010
HUD has updated the link to the RESPA FAQs. http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf

When you click this, you currently get the 27 page 9/3 version.

The link in my prior post takes you to the 9/1 version.
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

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#1245748 - 09/04/09 02:40 PM Re: RESPA changes 1-1-10 [Re: Reads Regs]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
Bookmark this page:
http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
It takes you to the pdf link to open the latest version.

BTW, when I did this (to paste the link), I see there is a NEW version (9/4) and they bolded the new Q&A's to let us know what has changed. Yeah! They listened to my email!
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1245756 - 09/04/09 02:46 PM Re: RESPA changes 1-1-10 [Re: David Dickinson]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 16317
Loc: The Swamp
miracles happen! I'm impressed!

and thanks.
_________________________
My opinion only. Not legal advice.

You will never see what's inside of me - Five Finger Death Punch

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#1245782 - 09/04/09 03:03 PM Re: RESPA changes 1-1-10 [Re: David Dickinson]
FC Offline
100 Club

Registered: 02/11/04
Posts: 100
Is there a new Settlement Cost Booklet that goes along with the new HUD1 and GFE?

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#1245800 - 09/04/09 03:19 PM Re: RESPA changes 1-1-10 [Re: FC]
ahou Offline
Power Poster

Registered: 08/15/02
Posts: 2695
I don't think it has been revised yet.
_________________________
Opinions are my own and not of my employer.

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#1245825 - 09/04/09 03:38 PM Re: RESPA changes 1-1-10 [Re: ahou]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
They are working on it, but it's not out yet (see the last Q&A in the CONSTANTLY revised FAQs).
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1246152 - 09/08/09 10:19 AM Re: RESPA changes 1-1-10 [Re: David Dickinson]
Will B Offline
Gold Star

Registered: 07/28/05
Posts: 311
With the new Reg X requirement to provide a GFE once we receive the six pieces of information how should lenders handle prequalifications? If your bank pulls a credit report in order to perform a prequalification you'll typically have all six pieces of information, so you'd be required to give a GFE.
_________________________
My opinions are not necessarily those of my employer and should not be taken as legal advice.

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#1246403 - 09/08/09 01:48 PM Re: RESPA changes 1-1-10 [Re: Will B]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
Typically, a prequalification doesn't have a specific property - one of the 6 items necessary to have an application. No property = no RESPA.

If you do have all 6 items, you have an application and all RESPA requirements are triggered - including the GFE.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1246547 - 09/08/09 03:26 PM Re: RESPA changes 1-1-10 [Re: David Dickinson]
Amos Offline
100 Club

Registered: 11/09/04
Posts: 237
Loc: USA
Originally Posted By: David Dickinson
Typically, a prequalification doesn't have a specific property - one of the 6 items necessary to have an application. No property = no RESPA.

If you do have all 6 items, you have an application and all RESPA requirements are triggered - including the GFE.


You don't necessarily have an application if you have all six items. The definition of application also includes "any other information deemed necessary by the loan originator."

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#1246556 - 09/08/09 03:30 PM Re: RESPA changes 1-1-10 [Re: Amos]
Amos Offline
100 Club

Registered: 11/09/04
Posts: 237
Loc: USA
Originally Posted By: Amos
Would this alternative statement for FHA loans replace the statement "If you pay off early you may have to pay a penalty" or would it be in addition to that disclosure?

Also, on the new GFE, even though FHA loans don't have a prepayment penalty, would you then answer "yes" to the question, "Does your loan have a prepayment penalty?" And how would you calculate the dollar amount of the maximum prepayment penalty?


Anybody?

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#1246571 - 09/08/09 03:42 PM Re: RESPA changes 1-1-10 [Re: Amos]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40605
Loc: Bloomington, IN
Quote:
You don't necessarily have an application if you have all six items. The definition of application also includes "any other information deemed necessary by the loan originator."


Outside of the six criteria listed just what other information would you require before you would consider having an application for credit subject to disclosure requirements? Keep in mind RESPA does not address a "complete" application, it only addresses that you have enough information to begin your credit process.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1246674 - 09/08/09 04:26 PM Re: RESPA changes 1-1-10 [Re: Dan Persfull]
Amos Offline
100 Club

Registered: 11/09/04
Posts: 237
Loc: USA
Originally Posted By: Dan Persfull
Quote:
You don't necessarily have an application if you have all six items. The definition of application also includes "any other information deemed necessary by the loan originator."


Outside of the six criteria listed just what other information would you require before you would consider having an application for credit subject to disclosure requirements? Keep in mind RESPA does not address a "complete" application, it only addresses that you have enough information to begin your credit process.


I based my comment on the following statement from the final rule published in the Federal Register on 11/11/08 on page 68211:

“…at the time of application, the loan originator will decide what application information it needs to collect from a borrower, and which of that collected application information it will use, in order to issue a meaningful GFE. However, before providing the GFE, the loan originator will be assumed to have collected at least the following six items of information: the borrower’s name, Social Security Number, and gross monthly income; the property address; an estimate of the value of the property; and the amount of the mortgage loan sought. The borrower’s Social Security Number would be collected for purposes of obtaining a credit report. The final rule now defines ‘‘application’’ to include at least these six items of information. Therefore, under this single application process, a loan originator may ask for, or a borrower may choose to submit, more information than the loan originator intends to use to process the GFE, for example the information on a standard 1003 mortgage loan application form, but beyond the six items of information, the loan originator will determine what it needs to issue a GFE.”

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#1246801 - 09/08/09 05:38 PM Re: RESPA changes 1-1-10 [Re: Amos]
David Dickinson Offline
10K Club

Registered: 11/28/00
Posts: 13910
Loc: Central City, NE
This is true Amos, but it must be applied consistently and can't include any verification info. So back to Dan's question: what info do you need?
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1246932 - 09/09/09 08:42 AM Re: RESPA changes 1-1-10 [Re: David Dickinson]
Amos Offline
100 Club

Registered: 11/09/04
Posts: 237
Loc: USA
For starters, information such as loan purpose, product type and type of property would be helpful in preparing a GFE. I don't want to change our process. I want to collect all of the information for the 1003, so if, after providing the GFE, an applicant elects to continue their application, I'm all set. I understand I will need to set a policy that outlines what information out of all that I collect will be used to generate GFEs.


Edited by Amos (09/09/09 08:48 AM)

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#1246936 - 09/09/09 08:50 AM Re: RESPA changes 1-1-10 [Re: Amos]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 49720
Loc: Galveston, TX
Because that is the regulatory requirement: "but beyond the six items of information, the loan originator will determine what it needs to issue a GFE.” HUD drew a bright line in the sand. If you determine that you need specific additional information, then you are going to "need" it from each and every applicant prior to proceeding or you may venture into a fair lending issue.
_________________________
The opinions expressed are my own, take them or leave them.

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