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September 10
Critical Issues on Certificates of Deposit;
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September 16
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September 22
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September 23
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September 24
Using CPTED to Make Our Banks Safer;
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Page 92 of 94 < 1 2 ... 90 91 92 93 94 >
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#1360975 - 03/19/10 01:27 PM Re: RESPA changes 1-1-10 [Re: banker2008]
RolTyde Online
Member

Registered: 11/26/08
Posts: 54
Loc: Anywhere but here
There's a question here regarding termite inspection and the GFE. We don't require termite inspections but most of the sales contracts do. I say we don't quote even if it's on the contract because we don't require it. Some here think it should be added to the GFE as a changed circumstance. Who's correct?

If I am correct and we don't quote it, where are you showing these type fees on your HUD? We're having a hard time getting our system to let us add these fees without showing an alert that we are out of the 10% tolerance since it wasn't quoted on the GFE.

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RESPA
#1360986 - 03/19/10 01:33 PM Re: RESPA changes 1-1-10 [Re: RolTyde]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40644
Loc: Bloomington, IN

Page 31 of the FAQs

GFE – Block 6
1) Q: What charges are disclosed in Block 6 of the GFE?
A: Block 6 of the GFE includes third party services required by the lender where the borrower is permitted to shop for the provider, other than Title services and lender’s title insurance (Block 4) and Owner’s title insurance (Block 5). These types of charges include, but are not limited to: survey, pest inspection and other types of inspections required by the lender. Charges that are part of the sales contract, but are not required by the lender, are not disclosed on the GFE.

Page 52 of the FAQs

HUD-1 – 1300 series
1) Q: What charges are shown in the 1300 series of the HUD-1 Settlement Statement?
A: The 1300 series of the HUD-1 Settlement Statement is used to record the charges for settlement services that are disclosed in Block 6 of the GFE as well as charges that are not disclosed on the GFE. Examples of some of these services may include charges for home inspections, radon inspections, and homeowner‘s warranty.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1361003 - 03/19/10 01:45 PM Re: RESPA changes 1-1-10 [Re: banker2008]
MN Banker Offline
Platinum Poster

Registered: 08/02/06
Posts: 980
Originally Posted By: banker2008
Would a tax transcript fee be included in box 1 or 3 of the GFE?


According to the HUD webcast yesterday, that is a block 1 fee. Same with DU and LP fees.

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#1361392 - 03/20/10 04:55 PM Re: RESPA changes 1-1-10 [Re: Dan Persfull]
theloanbug Offline
Gold Star

Registered: 09/10/05
Posts: 370
If we were aware of the termite inspection from the contract is it ok to add it to the GFE even though we don't require it as a lender or should we leave it off completely?

Thanks

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#1361393 - 03/20/10 05:47 PM Re: RESPA changes 1-1-10 [Re: theloanbug]
Truffle Royale Offline

10K Club

Registered: 07/09/03
Posts: 14211
The only fees that go on the GFE are those that the ones the bank requires. If the borrower wants an inspection it shows on the HUD but not the GFE. If the lender REQUIRES an inspection, it goes on the GFE.
_________________________
Your life is an occasion. Rise to it! Suzanne Weyn

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#1361394 - 03/20/10 06:00 PM Re: RESPA changes 1-1-10 [Re: Truffle Royale]
theloanbug Offline
Gold Star

Registered: 09/10/05
Posts: 370
So, I am little confused about title/lenders insurance, if we do not require it, then why should we put on the the GFE? Can we leave this off also?

Thanks for your help. So if we don't pull a credit report we don't show it on the GFE and we wouldn't show it on the HUD, correct.

Also have another question for you. On the GFE we show our hazard insurance, but 99 perecent of the time at closing the insurance is paid for this is effecting my note amount and I can not change my note amount on my system. Can I give a new GFE and can show on this GFE cash instead of adding to proceeds of my note like we did on the previous GFE?

Hope this is understandable. I am sure it is not, I am trying so hard to understand all of this. I use Arta Lending Software.

Thanks

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#1361395 - 03/20/10 06:49 PM Re: RESPA changes 1-1-10 [Re: theloanbug]
Truffle Royale Offline

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Registered: 07/09/03
Posts: 14211
[quote=theloanbug]So, I am little confused about title/lenders insurance, if we do not require it, then why should we put on the the GFE? Can we leave this off also? Whoa, let's back this up. Don't you require title insurance on every loan to show clear title and insure your mortgage is in first lien position? If not, do you do an attorney's opinion? Whichever one of these you use would go in Block 4 for title insurance.

Further, if the loan is a purchase, RESPA requires you to put the cost of owners on the GFE whether the borrower will get it or not. Remember, the GFE is now a 'worst case scenario' of costs the borrower could incur.


Thanks for your help. So if we don't pull a credit report we don't show it on the GFE and we wouldn't show it on the HUD, correct. You don't pull a credit report at all? How do you prove the credit info for your borrower?

Also have another question for you. On the GFE we show our hazard insurance, but 99 perecent of the time at closing the insurance is paid for this is effecting my note amount and I can not change my note amount on my system. Can I give a new GFE and can show on this GFE cash instead of adding to proceeds of my note like we did on the previous GFE? No you cannot give a new GFE just because a cost drops. Just show it on the HUD as POC. Why are you rolling the cost of hazard insurance into the loan amount? Sounds like your bank is trying to roll everything into the loan amount and then, if they don't need it, back the loan amount down. Are you trying to make sure the borrower doesn't have to bring cash to closing but isn't going to walk away with any either? It would seem to me, your lenders need to come up with a loan amount that can cover costs and/or giving the borrower cash back.

Hope this is understandable. I am sure it is not, I am trying so hard to understand all of this. I use Arta Lending Software. Can't help you with Arta. Keep reading other threads and I'm sure you'll get the hang of this. Remember, we're all in the same leaky boat bailing water just to keep afloat and understand.

Thanks




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#1361398 - 03/20/10 08:47 PM Re: RESPA changes 1-1-10 [Re: Truffle Royale]
theloanbug Offline
Gold Star

Registered: 09/10/05
Posts: 370
No, we don't roll all the costs into the loan. I show the insurance poc on the HUD. The only costs I roll into the loan is abstracting work, attorney's op., filing fees, mortgage tax, and appraisal fee. That is all we used to show on our old GFE,is this all we need to show on our new GFE? Except now I have the credit report and lender pays that and that is my problem. I don't know how to show this so it will not show in my settlement charges and raise my loan amount.

If the customer does not get owners and you showed charge on the GFE then how do you show that on the HUD?

We did pay the mort tax also, but now we pass this on to the
customer, but when I calculate on the GFE it will always be less on the HUD. I realized this is a zero tolerance, but how do I prevent this being less. Remember I am in Oklahoma and mine is based on the mortgage amount which is also my loan amount. Maybe I am doing this wrong too. I calculate all my fees on the GFE with the amount the borrwer is borrowing and get my mort tax and then we do the same thing on the HUD and of course it is different because of the insurance on the GFE is calculated in the loan amount, but it is not the HUD because it is poc. HELP????? Are we looking at this all wrong.

Arta told me to show the credit report charge on my GFE as a
charge and show on the HUD as poc by the lender.


Thanks for all of your help and advice.
If we already had the loans and just combining all this customers loans together sometimes we don't pull credit.

We do abstracting and an attoney's opinion. So I don't have to show title insurance on the GFE since it is not a requirement for our bank.


Edited by theloanbug (03/20/10 09:07 PM)

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#1361399 - 03/20/10 10:14 PM Re: RESPA changes 1-1-10 [Re: theloanbug]
Truffle Royale Offline

10K Club

Registered: 07/09/03
Posts: 14211
Abstracting and attorney's opinion IS your equivalent of title insurance. That goes in Block 4 for Oklahoma the same way it does for Iowa which is another abstract/title opinoin state.

Less on the HUD is ok.

Quote:
The only costs I roll into the loan is abstracting work, attorney's op., filing fees, mortgage tax, and appraisal fee.
I still don't understand this. Maybe someone else will on Monday. Let's enjoy our Sunday without worrying about RESPA. wink

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#1361421 - 03/21/10 03:34 PM Re: RESPA changes 1-1-10 [Re: Truffle Royale]
theloanbug Offline
Gold Star

Registered: 09/10/05
Posts: 370
I thought block 8 was a zero tolerance also, be great if it is not.

Thanks.

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#1361423 - 03/21/10 04:09 PM Re: RESPA changes 1-1-10 [Re: theloanbug]
Truffle Royale Offline

10K Club

Registered: 07/09/03
Posts: 14211
Answering from home is not the way to try and do these sometimes. Got confused on Block numbers. I apologize.



Edited by Truffle Royale (03/22/10 10:35 AM)
Edit Reason: dub moment

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#1361426 - 03/21/10 04:49 PM Re: RESPA changes 1-1-10 [Re: Truffle Royale]
theloanbug Offline
Gold Star

Registered: 09/10/05
Posts: 370
I think block 8 is transfer tax. I just need to make sure that is where the mort tax goes is in block 8 which I just don't think is correct. Since the mortgage tax is filed on every mortgage. Like I said I believe this is where the doc stamps would be entered. Buyer/Seller Transaction. Doc stamps are based on the sells price.

My mortgage tax fee is entered on line 1205 right now. Which shows up on the comparison table of line 1203. Which I think is a zero tolerance area.

Have a great day.

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#1361474 - 03/22/10 08:52 AM Re: RESPA changes 1-1-10 [Re: theloanbug]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40644
Loc: Bloomington, IN
Block 8, Transfer Taxes, cannot increase at settlement. Mortgage taxes do go in Block 8. See my post #1360204 in this thread for a quick summary of HUD's Web broadcast the other day. A change in the loan amount should be a changed circumstance that would allow you to issue a revised GFE for charges that are directly affected by the loan amount.

If you aren't rolling fees into the loan amount then in ARTA you need to show them as being paid by cash. If you are having trouble with no/partial cost loans see if this thread will help

ARTA and GFE
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1361950 - 03/22/10 03:51 PM Re: RESPA changes 1-1-10 [Re: Truffle Royale]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 4455
Loc: OK
So....since Oklahoma is a title exam state and that goes in block 4....on a purchase transaction....what, if anything, goes in block 5? Confused. My understanding is owner's title insurance isn't a requirement in Oklahoma, but it can and sometimes is purchased by the buyer. Must this be quoted, even if we aren't requiring it?


Edited by raitchjay (03/22/10 04:46 PM)
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#1362027 - 03/22/10 04:56 PM Re: RESPA changes 1-1-10 [Re: raitchjay]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 16327
Loc: The Swamp
On a purchase, OTI must be disclosed, regardless or whether you require it or who will be paying for it, or even if they don't get it.
_________________________
My opinion only. Not legal advice.

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

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#1362031 - 03/22/10 04:58 PM Re: RESPA changes 1-1-10 [Re: raitchjay]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40644
Loc: Bloomington, IN
Owners title insurance has to be quoted in Block 5 regardless if it's required or who pays for it.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1362306 - 03/23/10 11:00 AM Re: RESPA changes 1-1-10 [Re: Dan Persfull]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 16327
Loc: The Swamp
Where would you place an MV-1 (vehicle title) fee? I'm a bit torn between block 3 and block 7. (i'm leaning towards 7)


Edited by RR joker (03/23/10 11:06 AM)
Edit Reason: added ( ) info
_________________________
My opinion only. Not legal advice.

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

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#1362327 - 03/23/10 11:15 AM Re: RESPA changes 1-1-10 [Re: RR Joker]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 40644
Loc: Bloomington, IN
It's a public/government official filing fee to record your lien on the vehicle's title. I would agree with Block 7.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1362355 - 03/23/10 11:50 AM Re: RESPA changes 1-1-10 [Re: Dan Persfull]
Bullseye Online
Platinum Poster

Registered: 01/27/04
Posts: 956
Just ran into a vehicle title fee as well. Dealer paid it, but it still had to be disclosed as a POC, right? But we also had the mortgage filing fee in Block 7 (line 1102 on HUD). We can't do part of the fee as a POC and charge them for the other. Any suggestions on how to handle?

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#1362361 - 03/23/10 11:55 AM Re: RESPA changes 1-1-10 [Re: Dan Persfull]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 4455
Loc: OK
7. Block 11 - for homeowners insurance we no longer have to disclose a premium for refinancings and subordinate lien loans unless the premium is coming due and we will require it to be paid as a condition of the closing. You must still disclose homeowners insurance in Block 11 but you will show a $0.00 premium due and you must show $0.00. You cannot use NA.

Dan....was this just a clarification? I'm getting tired of telling my lenders one thing, then HUD clarifying something and having to tell them the opposite.
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"I have yet to see a piece of writing, political or non-political, that doesn't have a slant..."

E.B. White


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#1362371 - 03/23/10 12:18 PM Re: RESPA changes 1-1-10 [Re: raitchjay]
Truffle Royale Offline

10K Club

Registered: 07/09/03
Posts: 14211
raitch, I've taken to ending any 'clarification RESPA' correspondence with a saying my dad liked to use...Subject to change without notice. crazy
_________________________
Your life is an occasion. Rise to it! Suzanne Weyn

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#1362406 - 03/23/10 12:48 PM Re: RESPA changes 1-1-10 [Re: Truffle Royale]
Kahola Offline
Platinum Poster

Registered: 05/03/01
Posts: 712
Loc: Scottsdale, AZ. 85255
Is it okay to list appraisal and credit report refunds on lines 204 and 205 of the HUD-1?

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#1362629 - 03/23/10 04:35 PM Re: RESPA changes 1-1-10 [Re: raitchjay]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 13940
Loc: Central City, NE
Originally Posted By: raitchjay
Dan....was this just a clarification? I'm getting tired of telling my lenders one thing, then HUD clarifying something and having to tell them the opposite.

HUD is absolutely making things up as we go. They should have heeded the ABA's advise of delaying the implementation of this new regulation until they had it all figured out. The HUD web cast "changed" several things that are in contradiction to the regulation/FAQs. This is one of them. I, too, am tired of telling people something (either directly supported by the reg/FAQs or using an educated guess because there is no guidance) and then finding out HUD changed their answer or came out with new guidance. But we're going to have to get used to it.
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http://www.bankerscompliance.com

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#1362857 - 03/24/10 10:22 AM Re: RESPA changes 1-1-10 [Re: OldSchoolBanker]
#Just Jay Online
10K Club

Registered: 10/26/06
Posts: 13632
Loc: Cheeseheadland
I am interested in hearing from others who may be working with local community groups or housing authorities that specialize in helping borrowers obtain DPA loans or grants, for a money purchase loan that you will be financing, and how you are treating these DPA loans/grants for RESPA purposes.

Thanks.
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#1362866 - 03/24/10 10:31 AM Re: RESPA changes 1-1-10 [Re: RR Joker]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 4455
Loc: OK
Originally Posted By: RR joker
On a purchase, OTI must be disclosed, regardless or whether you require it or who will be paying for it, or even if they don't get it.


Does this include a loan to convert a construction note to long term financing? (i'm thinking yeah, but want to be sure)
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E.B. White


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