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#1282989 - 11/06/09 09:23 PM Re: RESPA changes 1-1-10 Truffle Royale
TB 12 Offline
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Here is a dumb question-Box 11 on GFE-you list the hazard and flood ins (if any) estimates-do we have to list a company name? We have no idea who they might use, and often times it is a last minute decision on thier end. In the sample completed GFE a company name was listed.
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#1282994 - 11/06/09 09:28 PM Re: RESPA changes 1-1-10 Truffle Royale
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Well, just to throw an additional wrench in there, Truffle, as to why we were also so happy with that answer this morning....one of our mortgage software vendors (we have 2 plus our online) said that their software is not set up for brokers, so if we had to disclose that with the new rules, we would not be able to on that program - that is what the rep told us yesterday. crazy That seems odd to me, but that's what she said.

Not good if you can be in a testing environment yet. I guess I can understand though with the FAQs being constantly updated.
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#1283012 - 11/06/09 09:41 PM Re: RESPA changes 1-1-10 CalifDreamin
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My wrench is that we're a bankers' bank. Community banks lock loans with us and we lock them with an investor all on the same day and always before closing. While the banks use their own funds, we act as their loan department and prepare their docs, including the GFE/TIL and HUD. That's the boiled down version, anyway. I was worried how we were going to deal with pricing, etc. I'm taking your answer to mean we don't have to include it for our banks. Please please let it stay that way. whistle

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#1283018 - 11/06/09 09:50 PM Re: RESPA changes 1-1-10 TB 12
David Dickinson Offline
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Originally Posted By: Sox in 07
Here is a dumb question-Box 11 on GFE-you list the hazard and flood ins (if any) estimates-do we have to list a company name? We have no idea who they might use, and often times it is a last minute decision on thier end. In the sample completed GFE a company name was listed.

Not on the GFE. I don't know why the OTS's forms included "Insure U" on the GFE.
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#1283027 - 11/06/09 09:54 PM Re: RESPA changes 1-1-10 David Dickinson
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Thanks David!
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#1283032 - 11/06/09 09:56 PM Re: RESPA changes 1-1-10 David Dickinson
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I keep getting error messages on all of the HUD website links. Can anyone direct me to a WORD version of the current settlement cost booklet? We do so few purchase transactions, we think we'll go ahead and reproduce it to print with our other disclosures rather than ordering hard copies.

Thanks for any help.

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#1283089 - 11/06/09 10:38 PM Re: RESPA changes 1-1-10 Ninky
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http://www.hud.gov/offices/hsg/ramh/res/stcosmsw.doc

This version is dated 1997. The last page of the RESPA FAQs indicates that HUD is working on revising the booklet. They said they'll post it on their website and publish it in the Federal Register when it is ready.
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#1283112 - 11/06/09 11:19 PM Re: RESPA changes 1-1-10 Reads Regs
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Thank you Reads Regs. It took a while to download, but looks great. Thank you very much.

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#1283175 - 11/07/09 09:56 PM Re: RESPA changes 1-1-10 RR Joker
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Does anyone know how this is going to effect the 1098 and reportable points in 2010? If all bank fees are now going to be shown on line 801, then is that the amount we would start reporting on the 1098?

Currently the 1098 instructions read as follows:

Reportable points. Report on Form 1098 points that meet all the following conditions.
1.They are clearly designated on the Uniform Settlement Statement (Form HUD-1) as points; for example, “loan origination fee”

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#1283177 - 11/07/09 10:31 PM Re: RESPA changes 1-1-10 jlroberts
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Originally Posted By: jlroberts
Does anyone know how this is going to effect the 1098 and reportable points in 2010? If all bank fees are now going to be shown on line 801, then is that the amount we would start reporting on the 1098?
See page 38 for 1098 info
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#1283303 - 11/09/09 03:20 PM Re: RESPA changes 1-1-10 Cowboys Fan
KaEm Offline
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We lend in numerous states and are looking for a good website (or even a 3rd party vendor) that can provide title charges, recording fees, state taxes and notifications of fee schedule changes. Does anyone have any suggestions?

Thanks in advance.

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#1283396 - 11/09/09 04:47 PM Re: RESPA changes 1-1-10 TB 12
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Originally Posted By: Sox in 07
Originally Posted By: jenny123
1. If the applicant expresses intent to proceed before the GFE expires and the closing does not take place until after the GFE expires, do you have to issue a new GFE? If you are no longer bound by the settlement charges, does that mean that you can change the actual costs because by then you probably would have received the invoice for the appriasal and title work to know the actual costs.
2. Would you have to issue a new GFE within 3 business days after it expires or could you issue it at closing.

The only changed circumstance is that the GFE expired and you now know the actual cost for settlement services.

1. The borrower has 10 days to decide to proceed after they recieve the GFE. If they express intent to proceed within those 10 days, the fees on the GFE must be honored within the applicable tolerances. If they do not express intent to proceed within the 10 days, you are no longer bound by those terms, and you would issue a new one if they came back to you.

2. If a redisclose is required, you would have 3 days to do it.


Sox in 07, is this true? Its causing some confusion for me because the latest FAQ state that if the 10 day period expires, then the originator is permitted to chage "all of the charges and terms": (faq, pg. 16, Imp. Dates, Question #3)

3) Q: What charges can change before the interest rate is locked?
A: With the exception of interest rate-dependent charges and terms, the charges and terms for all settlement services on the GFE must be available for 10 business days from when the GFE is provided, or for such longer period of time as the loan originator provides in item 2 of the &#8213;Important dates&#8214; section of the GFE. The interest rate-dependent charges and terms cannot change before the expiration of the period indicated by the loan originator in item 1 of the &#8213;Important dates&#8214; section of the GFE. Between the period of time indicated in item 1 and item 2 of the &#8213;Important dates&#8214; section, only interest rate-dependent charges may change until the interest rate is locked. After the expiration of the period indicated in item 2 of the &#8213;Important dates&#8214; section, the loan originator is permitted to change all of the charges and terms on the GFE (assuming that the interest rate is no longer available, as indicated in item 1 of the &#8213;Important dates&#8214; section).

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#1283425 - 11/09/09 05:09 PM Re: RESPA changes 1-1-10 jcampbell
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Unless I'm missing something (it IS Monday after all) you and Sox are agreeing, jcampbell, so I'm not understanding your question.

Ten days is the MINIMUN amount of time that the GFE is valid for. You could make it longer by putting a different date in 2. as the FAQ you quoted states.

Is that your question or did I miss it by a Monday mile?

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#1283504 - 11/09/09 06:18 PM Re: RESPA changes 1-1-10 Truffle Royale
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Originally Posted By: Truffle Royale
Unless I'm missing something (it IS Monday after all) you and Sox are agreeing, jcampbell, so I'm not understanding your question.

Ten days is the MINIMUN amount of time that the GFE is valid for. You could make it longer by putting a different date in 2. as the FAQ you quoted states.

Is that your question or did I miss it by a Monday mile?


You're right, I should have been more clear.

Sox in 07 said: If they express intent to proceed within those 10 days, the fees on the GFE must be honored within the applicable tolerances.

My question is whether this is true or not because I do not see anything in the final rule or the FAQ that requires honoring fees on the GFE after the expiration of #2 (the 10 days or longer). In fact the FAQ I posted specifically states that the originator is permitted to change the charges. (assuming that the rate is no longer available)

Let me know if I am missing something - like you said, it is Monday.
Last edited by jcampbell; 11/09/09 06:20 PM.
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#1283519 - 11/09/09 06:30 PM Re: RESPA changes 1-1-10 jcampbell
Truffle Royale Offline

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It looks like you're mixing apples and oranges to me.
Sox is talking about the date listed as number 2 on page 1 of the new GFE. This line refers to '...all other settlement charges....'
Anything to do with rate lock expiration would be the date shown at number 1. Line one specifically goes on to explain that '...the interest rate, some of your loan aorigination charges and the monthly payment...' can change after this date. That does not mean other charges can be changed too.

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#1283539 - 11/09/09 06:43 PM Re: RESPA changes 1-1-10 Truffle Royale
RR Joker Offline
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FlamingoGal...I believe that if are the lender (and fund) and subsequently sell to an investor (even if "prearranged"), you don't have to disclose the spread. This makes ZERO sense, because you know you will get it, same as a table-funded transaction...but after closing and prior to sale, it changes to a "secondary-market" transaction and those pricings are not affected.

So...what sense does the trade-off table make in a situation like this...answer THAT for me (other than a buydown, of course)

I guess another situation would be...okay, I want to make 2.75% on this loan request...so I price accordingly. If they want a credit, bump the rate up however much to receive, say a 3.25% total and credit them the 50bp difference.

Still makes no sense that abroker would have to disclose the 2.75% and a "lender" wouldn't.
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#1283541 - 11/09/09 06:43 PM Re: RESPA changes 1-1-10 Truffle Royale
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Its not apples and oranges - Q3 on pg. 16 covers both #1 and #2 of the important dates section.

You're probably correct but if I'm a lender and I have broker GFE without a rate lock, show me where its prohibited to redisclose and change the estimate of other settlement charges after the 10 days.

Like I said, I think you are probably correct but I'm looking for a specific statement in the final rule or the FAQ to support it.

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#1283625 - 11/09/09 07:54 PM Re: RESPA changes 1-1-10 jcampbell
Sheldon Hendrix Offline
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I have a few questions on the new GFE:
1) We pull a credit report, but do not charge the expense we incur to the borrower? Do we disclose on the new GFE?
2)We charge a standard fee for an attorney's review of title and document preparation (as one single fee). Where does this get disclosed?

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#1283677 - 11/09/09 08:24 PM Re: RESPA changes 1-1-10 Sheldon Hendrix
RR Joker Offline
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We have always had a delima on the credit report for in-house loans (not a problem for secondary market). the charge is very small, but isn't set and we have no idea what it is prior to closing a loan. We consider it a part of our loan fee and absorb it. We've never been written up or critized for this...I don't know any other way to handle it.

As far as your second question, that should be a part of the title services fees.

However, if the document preparation is for preparing documents for you, then you are supposed to show that in your origination charges.
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#1283696 - 11/09/09 08:37 PM Re: RESPA changes 1-1-10 jcampbell
TB 12 Offline
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Originally Posted By: jcampbell
Originally Posted By: Truffle Royale
Unless I'm missing something (it IS Monday after all) you and Sox are agreeing, jcampbell, so I'm not understanding your question.

Ten days is the MINIMUN amount of time that the GFE is valid for. You could make it longer by putting a different date in 2. as the FAQ you quoted states.

Is that your question or did I miss it by a Monday mile?


You're right, I should have been more clear.

Sox in 07 said: If they express intent to proceed within those 10 days, the fees on the GFE must be honored within the applicable tolerances.

My question is whether this is true or not because I do not see anything in the final rule or the FAQ that requires honoring fees on the GFE after the expiration of #2 (the 10 days or longer). In fact the FAQ I posted specifically states that the originator is permitted to change the charges. (assuming that the rate is no longer available)

Let me know if I am missing something - like you said, it is Monday.


j-

I am a bit confused by what you are asking-as Truff noted, I think we are saying the same thing. The 10 (or more) days is to allow a borrower to shop. If you give them a GFE today, the costs quoted (other than interest rate related costs if not locked) are available for the borrower to accept (my wording) for 10 days, and if they do intend to proceed, the lender is locked into those fees (per the tolerances). If the customer takes your GFE, does not express any intent to proceed, but comes back 15 days later, you as the lender are not obligated to the fees originally disclosed.
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#1283844 - 11/09/09 09:52 PM Re: RESPA changes 1-1-10 RobinB
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Page 32, Answer 1 of the FAQ states that "using the HUD-1 form does not subject a transaction to coverage under RESPA."

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#1283846 - 11/09/09 09:54 PM Re: RESPA changes 1-1-10 RR Joker
Sheldon Hendrix Offline
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Originally Posted By: RR joker

As far as your second question, that should be a part of the title services fees.

However, if the document preparation is for preparing documents for you, then you are supposed to show that in your origination charges.


The fee is actually for both title examination and document preparation for us, so I am torn with what box to put it in - 1 or 4???

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#1283849 - 11/09/09 09:56 PM Re: RESPA changes 1-1-10 jcampbell
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Page 10, Answer 1 of the FAQ states "If a borrower does not express an intent to continue with an application within ten business days after the GFE is provided (or such longer time period specified by the loan originator), the loan originator is no longer bound by the GFE."

Does that statement address your question?

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#1283895 - 11/09/09 10:40 PM Re: RESPA changes 1-1-10 dbrunow
David Dickinson Offline
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Originally Posted By: dbrunow
Page 10, Answer 1 of the FAQ states "If a borrower does not express an intent to continue with an application within ten business days after the GFE is provided (or such longer time period specified by the loan originator), the loan originator is no longer bound by the GFE."

Does that statement address your question?

Plus, §3500.7(f) states (my paraphrase) "you must live by what you say on the GFE, unless a revised GFE is provided." IOW, if they come back on day 10 and say "OK, we'd like to go with your loan", you must go with those fees through closing, unless you have a changed circumstance.
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#1283901 - 11/09/09 10:42 PM Re: RESPA changes 1-1-10 Sheldon Hendrix
David Dickinson Offline
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Central City, NE
Originally Posted By: Compliance Rules
I have a few questions on the new GFE:
1) We pull a credit report, but do not charge the expense we incur to the borrower? Do we disclose on the new GFE?
2)We charge a standard fee for an attorney's review of title and document preparation (as one single fee). Where does this get disclosed?

1. Yes. ALL fees go on the GFE. You list the fee in Block 3 and offset in in Block 2.
2. I'm with you - Block 4 or Block 1. Another question that can't be resolved!

I'd email or call HUD to see if you can get an answer. They've got to know about these issues.
Last edited by David Dickinson; 11/09/09 10:44 PM.
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