Skip to content
GeoDataVision
Page 6 of 94 1 2 4 5 6 7 8 93 94
Thread Options
#1260658 - 10/02/09 01:44 PM Re: RESPA changes 1-1-10 MT Pockets
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Originally Posted By: MT Pockets
I have a question on how to categorize settlement services that are selected by the realtor but the buyer pays part of the fee? Our mortgage lenders tell me that normally, in our area, the realtor selects the title company which is also the closing agent but the buyer pays fees for the title insurance/closing costs. Can we say the Bank selects and live with the 10% tolerance level?

Refer to the RESPA FAQs:
GFE-Seller Paid Q&A #1 & 2, and
GFE - Block 5 Q&A #1 & 2.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
RESPA
#1260788 - 10/02/09 02:51 PM Re: RESPA changes 1-1-10 David Dickinson
MT Pockets Offline
100 Club
Joined: Oct 2004
Posts: 238
Up North
Thank you. I am more confused the more I read and try to understand how we are supposed to complete the GFE and HUD 1 accurately. Trying to explain to lenders and customers is a huge challenge.
_________________________
If you keep doing what you've always done, you'll get what you always got.

Return to Top
#1260818 - 10/02/09 03:02 PM Re: RESPA changes 1-1-10 MT Pockets
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I know exactly what you mean. Plus the GFE never tells the applicant what to bring to the closing table (as somethings are POC, paid by the seller, etc.). It also never tells them their total PITI if they have an escrow. Thanks HUD!
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1261088 - 10/02/09 06:26 PM Re: RESPA changes 1-1-10 David Dickinson
CrookedVulture Offline
100 Club
Joined: Jul 2008
Posts: 148
I have a question about the updated definition of mortgage broker in the new RESPA rules. The updated definition is as follows:

"Mortgage Broker means a person (not an employee of a lender) or entity that renders origination services and serves as an intermediary between a borrower and a lender in a transaction involving a federally related mortgage loan, including such a person or entity that closes the loan in its own name in a table funded transaction. A loan correspondent approved under 24 CFR 202.8 for Federal Housing Administration programs is a mortgage broker for purposes of this part."

I work for a bank that closes mortgage loans in our own name using our own funds with the purpose of then selling those loans to other financial institutions (or Freddie/Fannie). Is that considered table-funding? And if so, are we then considered a mortgage broker under this definition?

Also, the amended Reg Z 226.36 includes a new definition of mortgage broker that is limited to a "person". So it's possible that we will be considered a mortgage broker under RESPA but not under Reg Z?

Thanks in advance for any guidance.

Return to Top
#1261114 - 10/02/09 06:42 PM Re: RESPA changes 1-1-10 CrookedVulture
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Quote:
I work for a bank that closes mortgage loans in our own name using our own funds with the purpose of then selling those loans to other financial institutions (or Freddie/Fannie). Is that considered table-funding? And if so, are we then considered a mortgage broker under this definition?

"table funding" (see the definition in 3500.2) is when the funds aren't yours. If you use your own funds, you are not table funding and you're not a broker.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1261357 - 10/03/09 01:49 AM Re: RESPA changes 1-1-10 David Dickinson
jlroberts Offline
Diamond Poster
jlroberts
Joined: Sep 2009
Posts: 1,579
Ohio
Originally Posted By: David Dickinson
Quote:
Ok so at the time of application:

1. we tell them they can shop around for a title company to do the title search
2. we give them the required written list of title companies and they pick someone from the list.
3. that title company charges $500.00 for the service so we disclose that on the GFE
4. according to the new rules that fee is now subject to a 10% tolerance (because they decided not to shop around and pick from our list).
5. they contact us and tell us they want to use a different company for the title search (not on our list)
6. when we prepare the SS we put the fees from that title company on the SS - lets say $800.00
7. we do not have to provide a new GFE and we are not obligated to the 10% tolerance between the GFE and the HUD.

That's wonderful. We thought that once you gave the GFE that the fees for a required service could not change.


You're #3 is incorrect. You issue the GFE and provide the written list of providers BEFORE they select a service provider. You won't know who they are using until AFTER the GFE is issued. You must make your best guess of the fee BEFORE they choose a company and list that fee on the GFE. If they choose someone one your list, you are subject to a 10% tolerance. If they choose someone not on your list, there is no tolerance.


Thanks David, now it makes much more sense. We were trying to figure out how to quote fees from a company we don't normally do business with. We are thinking about only putting one title company on our list and putting their charges on the GFE. Then if they pick them, we won't be going over the tolerance because the charges will be accurate. And if they don't pick that company, a tolerance does not apply. Win-Win - Hope I got it right this time. smile

Return to Top
#1261772 - 10/05/09 06:07 PM Re: RESPA changes 1-1-10 jlroberts
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
What about subordinate lien purchase transactions?(piggybacks) Under GFE Block 5 in the appendix C, it says for all purchase transactions you must provide an estimate of the charge for the owners' title policy. The Q&A says each purchase transaction must have a separate GFE and separate HUD1. As the 2nd lien holder, we do not require this Owner's TP. Can we put NA on our GFE?

Return to Top
#1262428 - 10/06/09 07:14 PM Re: RESPA changes 1-1-10 Ninky
OldSchoolBanker Offline
Platinum Poster
Joined: May 2005
Posts: 660
FL
Any fifty state nationwide lenders who would like to compare notes on the new GFE challenges, please send me a message. I am interested in opening a dialogue with other national lenders on several GFE related issues.

Thanks
_________________________
Old School Banker

Return to Top
#1262848 - 10/07/09 02:45 PM Re: RESPA changes 1-1-10 OldSchoolBanker
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
I always thought that the borrower was supposed to choose their title company, that the lender could not tell them where they had to close their loan. For the Lender's title services and policy, we are held to a 10% tolerance if we select the company? So, I guess we can tell a borrower where they have to close?

Return to Top
#1262856 - 10/07/09 02:49 PM Re: RESPA changes 1-1-10 Ninky
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
If you consider that a "required" provider, yes.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1263005 - 10/07/09 04:05 PM Re: RESPA changes 1-1-10 David Dickinson
Oursisnottoreasonwhy Offline
Gold Star
Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 489
Central Illinois
Originally Posted By: David Dickinson
You're #3 is incorrect. You issue the GFE and provide the written list of providers BEFORE they select a service provider. You won't know who they are using until AFTER the GFE is issued. You must make your best guess of the fee BEFORE they choose a company and list that fee on the GFE. If they choose someone one your list, you are subject to a 10% tolerance. If they choose someone not on your list, there is no tolerance.


If you have 3 Title companies on your "list" 1 charges $100 2 charges $150 3 charges $300
If I pick #1 to put on my GFE because I want to show the lowest closing costs to be competitive, the customer picks #2 or #3 because they have some type of loyalty to that title company, are we not outside the 10% tolerance? Or after they select I need to issue a revised GFE?

Return to Top
#1263030 - 10/07/09 04:25 PM Re: RESPA changes 1-1-10 Oursisnottoreasonwhy
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
If they choose someone on your list, YOU are subject to the 10% tolerance. If they choose someone on your list, this is NOT a changed circumstance allowing you to issue a new GFE. Therefore, you probably need to list the highest $ amount.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1263034 - 10/07/09 04:27 PM Re: RESPA changes 1-1-10 RR Joker
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
Does anyone know where we can find the new GFE in a WORD format?

Return to Top
#1263341 - 10/07/09 08:56 PM Re: RESPA changes 1-1-10 Ninky
Reads Regs Online
Diamond Poster
Joined: Nov 2004
Posts: 2,294
HUD has updated the RESPA FAQs today (10/7). A new item was added on page 19 to address the recent guidance from the FRB to HUD regarding the FHA prepayment penalty issue. A new item was added on page 33 to address how to show points on the new HUD-1 form to help with IRS 1098 reporting.

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

Return to Top
#1263588 - 10/08/09 02:46 PM Re: RESPA changes 1-1-10 Reads Regs
Oursisnottoreasonwhy Offline
Gold Star
Oursisnottoreasonwhy
Joined: Nov 2004
Posts: 489
Central Illinois
Has HUD produced the new Settlement Cost Booklet?

Return to Top
#1263591 - 10/08/09 02:49 PM Re: RESPA changes 1-1-10 Oursisnottoreasonwhy
Reads Regs Online
Diamond Poster
Joined: Nov 2004
Posts: 2,294
Not yet. The last page of the FAQs says they will publish it on their website and put a notice in the Federal Register when it is available.
_________________________
Opinions expressed are my own and not necessarily those of my employer. They are not legal advice.

Return to Top
#1264111 - 10/08/09 09:07 PM Re: RESPA changes 1-1-10 rlcarey
CalifDreamin Offline
Diamond Poster
CalifDreamin
Joined: Mar 2002
Posts: 2,228
Far from Calif
HUD updated the FAQs again on 10-7-09: HUD FAQ 10-7-09
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer
_._._._._._.
A.S.A.P.
Always
Say
A
Prayer
<><

Return to Top
#1264203 - 10/08/09 10:00 PM Re: RESPA changes 1-1-10 rlcarey
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
Under the Summary of your loan, if the balloon payment is due in an odd amount of months, do you round? i.e. if it will be due in 15 yrs and 6 months, do we put 15 years or 15.5 years? What is expected or acceptable?

Return to Top
#1264682 - 10/09/09 04:56 PM Re: RESPA changes 1-1-10 Ninky
MT Pockets Offline
100 Club
Joined: Oct 2004
Posts: 238
Up North
Since "years" is hardcoded and there is no other guidance in the instructions or Q & A, seems to me it would be 15.5 but applying logic to this new GFE does not always give you the right answer.
_________________________
If you keep doing what you've always done, you'll get what you always got.

Return to Top
#1264828 - 10/09/09 06:40 PM Re: RESPA changes 1-1-10 MT Pockets
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Did the credit life entry ever get answered? I have scanned but have not found any replies on that. thanks! I'm beginning to think, since it's not required, it would just be shown as "other fees" on the HUD 1, 1300 series...and not appear on the GFE at all.

Also...I see where the opinion is back that you will have to provide a list of insurance companies...that's not an item in 4, 5 or 6..it's at 11, so why or where does it state this would require a list?

Last edited by RR joker; 10/09/09 07:38 PM.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1265288 - 10/12/09 12:59 PM Re: RESPA changes 1-1-10 RR Joker
GoBigRed Offline
New Poster
GoBigRed
Joined: Jan 2007
Posts: 15
Somewhere
Even though a signature is not required on the GFE, are we allowed to add a signature page/line at the end of the new form?

Return to Top
#1265383 - 10/12/09 05:54 PM Re: RESPA changes 1-1-10 GoBigRed
MT Pockets Offline
100 Club
Joined: Oct 2004
Posts: 238
Up North
I have a question on repair inspection fees. The bank selects the appraiser for the inspection and we do not retain the fee. Currently, we disclosed it on line 805 of the HUD 1 and on the GFE. On the new GFE,would the inspection fee be on Block 3 and subject to the 10% tolerance? The 10/7/09 Q & A for GFE - Block 1 question 2 indicates the lender inspection fees would be part of "Our origination charge" in Block 1 but we are not retaining the fee.
_________________________
If you keep doing what you've always done, you'll get what you always got.

Return to Top
#1265443 - 10/13/09 01:24 PM Re: RESPA changes 1-1-10 GoBigRed
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
Originally Posted By: GoBigRed
Even though a signature is not required on the GFE, are we allowed to add a signature page/line at the end of the new form?

No. You can't alter the GFE form. You could have a separate page that acknowledges receipt of the GFE.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
#1265451 - 10/13/09 01:37 PM Re: RESPA changes 1-1-10 David Dickinson
CompDat Offline
Platinum Poster
Joined: Dec 2005
Posts: 553
USA
Can someone provide a link to the final RESPA rule, either in the FR or HUD? I have checked both the FR and HUD and have been unable to locate the document.

Thanks in advance.

Return to Top
#1265466 - 10/13/09 02:19 PM Re: RESPA changes 1-1-10 CompDat
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
This will take you to a page where the final rule and FAQs are available.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top
Page 6 of 94 1 2 4 5 6 7 8 93 94

Moderator:  QCL