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#1316258 - 12/31/09 05:26 PM Re: RESPA changes 1-1-10 Bville
Reads Regs Offline
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Here's a link to the FAQs dated 12/30/09. http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf

They are 52 pages. The file was posted after 11:00 a.m. today. A new Q & A 8 was added to pages 12 and 13 of 52 regarding "Title Services and Lender's Title Insurance." They also updated the answer to the last question of the FAQs about the settlement costs booklet. They indicate that the new booklet is on the website. They do not elaborate on when it must be used. Section 3500.6(b) of Reg. X states "Revision. The Secretary may from time to time revise the special information booklet by publishing a notice in the Federal Register." I have yet to see the FR notice.
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#1316261 - 12/31/09 05:28 PM Re: RESPA changes 1-1-10 Reads Regs
RR Joker Offline
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We continue to only list it for Purchase transactions.
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#1316272 - 12/31/09 05:39 PM Re: RESPA changes 1-1-10 RR Joker
Reads Regs Offline
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RR Joker were you replying to me? I know the booklet is required for purchase money mortgage transactions. I was referring to when we must begin to use the new booklet. Vendors are saying you must start giving out the new booklets on 1/1/2010 but I have not seen an announcement from HUD on this.
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#1316273 - 12/31/09 05:42 PM Re: RESPA changes 1-1-10 RR Joker
Georgia Plum
Unregistered

Where does RESPA say that the borrower has the right to choose? It just says the seller can't require the borrower to purchase from a particular providor as a condition of the sale.

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#1316291 - 12/31/09 06:04 PM Re: RESPA changes 1-1-10 Reads Regs
David Dickinson Offline
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Central City, NE
Originally Posted By: Reads Regs
Here's a link to the FAQs dated 12/30/09. http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf

They are 52 pages. The file was posted after 11:00 a.m. today. A new Q & A 8 was added to pages 12 and 13 of 52 regarding "Title Services and Lender's Title Insurance." They also updated the answer to the last question of the FAQs about the settlement costs booklet. They indicate that the new booklet is on the website. They do not elaborate on when it must be used. Section 3500.6(b) of Reg. X states "Revision. The Secretary may from time to time revise the special information booklet by publishing a notice in the Federal Register." I have yet to see the FR notice.

I can't believe that's all of the updates they are giving us. With all of the questions we have and they post one new Q&A (the booklet info is just an announcement).

HUD - if you're reading this - COME ON! We've got questions (as you can see from these posts. Let's get some answers! PLEASE.
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#1316305 - 12/31/09 06:26 PM Re: RESPA changes 1-1-10 David Dickinson
RR Joker Offline
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For real...and it looks like (tho not a real biggie) that some older sections are still bold.

sorry ReadRegs...misunderstood. I would assume (;)) that the new book would be given out with the new GFE. At least that would make sense.
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#1316321 - 12/31/09 06:41 PM Re: RESPA changes 1-1-10 Reed
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Reed
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Originally Posted By: Spin
I've been reading through this thread but am still confused about where on the GFE to put the Freddie Mac Delivery Fee. It can change depending on the appraisal but it seems to meet the definition of a origination charge, which can't change. HELP!



Would any of you wonderful people be willing to take a stab at this?

Thanks!

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#1316376 - 12/31/09 07:31 PM Re: RESPA changes 1-1-10 Reed
DD Regs Offline
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Somewhere in the middle
Originally Posted By: Spin
Originally Posted By: Spin
I've been reading through this thread but am still confused about where on the GFE to put the Freddie Mac Delivery Fee. It can change depending on the appraisal but it seems to meet the definition of a origination charge, which can't change. HELP!



Would any of you wonderful people be willing to take a stab at this?

Thanks!


We were having issues with this also, so we have just raised our pricing (rate quote) and will not be charging it to the customer.
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#1316384 - 12/31/09 07:54 PM Re: RESPA changes 1-1-10 DD Regs
David Dickinson Offline
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I just read the new FAQs. They didn't add a new Q&A, they changed an answer. Now they allow you to break out items in Block 4, but you have to give the fees for each ON THE PROVIDER LIST. ARGH!

Quote:
For real...and it looks like (tho not a real biggie) that some older sections are still bold.

Joker: I don't see anything else bold except for the 2 revised Q&As.
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#1316385 - 12/31/09 07:56 PM Re: RESPA changes 1-1-10 DD Regs
80's Lady Offline
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I haven't seen a firm answer on the following, so I apologize if I have overlooked:

On credit reports, since this fee is never exactly the same amount, we are considering just absorbing this and not putting it on the GFE. If we do this, do we still have to list it on the GFE?

Also, I am just confirming. Our (the bank's) doc prep fee is still not considered a pre-paid finance charge on Residential Mortgage Transactions, right? I am questioning everything, which I know is probably ridiculous.

Thanks to all of you who have put so much into this thread -
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#1316388 - 12/31/09 08:01 PM Re: RESPA changes 1-1-10 80's Lady
David Dickinson Offline
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Central City, NE
Originally Posted By: 80's Lady
On credit reports, since this fee is never exactly the same amount, we are considering just absorbing this and not putting it on the GFE. If we do this, do we still have to list it on the GFE?

Yes. When fees are paid AND WHO PAYS FOR THEM is not a factor for the GFE. If it's a settlement cost, it must be listed. You'll need to list the fee in Block 3 and offset it in Block 2. If you don't know the amount of the fee, you might want to use the average charge method.

Quote:
Also, I am just confirming. Our (the bank's) doc prep fee is still not considered a pre-paid finance charge on Residential Mortgage Transactions, right? I am questioning everything, which I know is probably ridiculous.

Yes. RESPA does not affect TIL/APR issues.
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#1316403 - 12/31/09 08:11 PM Re: RESPA changes 1-1-10 David Dickinson
MarieR Offline
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[quote=David Dickinson]I just read the new FAQs. They didn't add a new Q&A, they changed an answer. Now they allow you to break out items in Block 4, but you have to give the fees for each ON THE PROVIDER LIST. ARGH!

I was really wishing that I had read that wrong!! Since this fee will change for every loan request, how in the world are we suppose to do that?

I really think I am just going to pretend that I haven't seen this until Monday morning. I really think they just made it clear that they have no idea how lending really works.
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#1316424 - 12/31/09 08:21 PM Re: RESPA changes 1-1-10 80's Lady
Dan Persfull Offline
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Quote:
On credit reports, since this fee is never exactly the same amount, we are considering just absorbing this and not putting it on the GFE. If we do this, do we still have to list it on the GFE?


You would still have to disclose it on the GFE, and the HUD.

Quote:
Also, I am just confirming. Our (the bank's) doc prep fee is still not considered a pre-paid finance charge on Residential Mortgage Transactions, right? I am questioning everything, which I know is probably ridiculous.


Reg Z excludes Doc Prep fees if reasonable and bona fide. I would advise you to be able to justify the fee with a cost approach analysis. IOWs be able to show your auditor/examiner you analyzed the cost and didn't just use a SWAG.
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#1316465 - 12/31/09 09:08 PM Re: RESPA changes 1-1-10 Dan Persfull
Mrs. Rizzo Offline
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Curled up by the fire...
Just to give everyone a great laugh. I just had a broker email wanting to know "what all is changing on Monday". "What about the new GFE? What do we do?"
I am at stroke level.
It's 3:08 PM on December 31, 2009.
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#1316499 - 12/31/09 09:37 PM Re: RESPA changes 1-1-10 Mrs. Rizzo
David Dickinson Offline
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Central City, NE
Wow! Ask them what planet they've been on.

Then again, I think we should expect to hear more of this.
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#1316500 - 12/31/09 09:38 PM Re: RESPA changes 1-1-10 Mrs. Rizzo
DD Regs Offline
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Somewhere in the middle
Tell them, it has been nice working with you in the past. Good Luck in your new job, whatever it is.

<<<So glad we do not have broker relationships.
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#1316510 - 12/31/09 09:44 PM Re: RESPA changes 1-1-10 DD Regs
Mrs. Rizzo Offline
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Curled up by the fire...
The really funny part about it was the wanting to know this stuff so it didn't hold up their loans next week. eek

<---So having a drink after work.

Happy New Year everyone!
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#1316585 - 01/02/10 09:47 PM Re: RESPA changes 1-1-10 DD Regs
#Just Jay Offline
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Originally Posted By: DD Regs
Tell them, it has been nice working with you in the past. Good Luck in your new job, whatever it is.

<<<So glad we do not have broker relationships.


Ditto that!
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#1316679 - 01/04/10 02:35 PM Re: RESPA changes 1-1-10 #Just Jay
manylayers Offline
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manylayers
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PA
NEW FAQ's

I think HUD reverted back to the original 11/19 document. I see on the RESPA page that the FAQ's were revised 12/30, but the document is identical to the one i printed from 11/19. No revised answers or questions.

I got all excited-hoping for some additional clarification.

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#1316684 - 01/04/10 02:48 PM Re: RESPA changes 1-1-10 manylayers
DD Regs Offline
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Somewhere in the middle
Quick (And stupid) question, if the loan application is dated 12/31, and the GFE was not issued when the application was taken, then the NEW GFE should be used?
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#1316690 - 01/04/10 02:52 PM Re: RESPA changes 1-1-10 DD Regs
#Just Jay Offline
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Yes. If the initial GFE was not issued on Thursday, then it must go ont he new form.

We ordered all LO's with open pending apps to complete GFE's before they left Thursday.
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#1316692 - 01/04/10 02:52 PM Re: RESPA changes 1-1-10 DD Regs
manylayers Offline
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PA
no stupid questions for RESPA!!

new gfe...and new hud..

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#1316699 - 01/04/10 03:00 PM Re: RESPA changes 1-1-10 #Just Jay
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Originally Posted By: Just Jay
Yes. If the initial GFE was not issued on Thursday, then it must go ont he new form.

We ordered all LO's with open pending apps to complete GFE's before they left Thursday.
I thought if the application was taken in 2009, you could use the 2009 forms. Where did you find this answer?

Secondary market issue We need to pull the DU findings in order to lock a loan. Lots of times we'll get a rate lock request and a signed Borrowers release and the original application. The GFE hasn't gone out yet. Can I pull the DU or is that considered a violation without intent to proceed?

Thanks for the hopefully quick answer to my questions.

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#1316703 - 01/04/10 03:01 PM Re: RESPA changes 1-1-10 manylayers
DD Regs Offline
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DD Regs
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Somewhere in the middle
Thanks, that is what I thought based on the FAQ's, but the staff is arguing that the application date drives the use.

2) Q: When will the use of the new GFE and HUD-1 forms be required?
A: The new GFE and HUD-1 forms must be used as of January 1, 2010. The new GFE and HUD-1 forms may be used before this date. Please note that if a loan originator issues a GFE on the new form, then the settlement agent must use the new HUD-1 form and the tolerances and other requirements in the revised RESPA regulations will apply.


I am using the argument that since the FAQ does not say other wise they mean you have to use it starting Jan1, 2010.
Last edited by DD Regs; 01/04/10 03:04 PM.
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#1316714 - 01/04/10 03:10 PM Re: RESPA changes 1-1-10 DD Regs
Mrs. Rizzo Offline
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Curled up by the fire...
Nice...real nice!!!!!!!!! cry
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