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#1303580 - 12/11/09 03:35 PM
Re: RESPA changes 1-1-10
ahou
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Power Poster
Joined: Aug 2002
Posts: 3,094
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If the bank understates a fee that is part of the origination fee on the GFE - $100, should be $50. Do we show $100 on the comparison chart in both the GFE column and the HUD-1 column because it is a zero tolerance charge or do we have to show $100 in the GFE column and the $50 in the HUD-1 column with a $50 lender credit (POC) on line 808?
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#1303610 - 12/11/09 03:52 PM
Re: RESPA changes 1-1-10
David Dickinson
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Joined: Aug 2002
Posts: 3,094
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Sometimes when we do the HUD, we haven't rec'd a billing for the abstract & clerk of court. After closing, when we receive these bills and the fee is more than indicated on the HUD, but within the 10% tolerance, do we have to send a revised HUD? Since the difference in the fees is within the tolerance, can we collect the difference from the customer?
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#1303695 - 12/11/09 04:37 PM
Re: RESPA changes 1-1-10
RR Joker
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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For my daily Owners Title Insurance rant/question:
If the borrower comes to you with a sales contract, and said contract contains the provision that the seller is selecting and paying for the OTI, then would you still be required to list ot on the GFE since it is clearly outlined in the sales contratc the the custoemr will not be responsible for it?
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#1303707 - 12/11/09 04:45 PM
Re: RESPA changes 1-1-10
#Just Jay
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Power Poster
Joined: Oct 2009
Posts: 9,103
OK
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I'm getting questions about abstracts here....since the abstract fee is based on how many pages the abstract company adds (or so i hear) how is this going to be known at time of application? i assume this fee would go in either block 3 or 6 depending on whether we let them shop for it? and since the range of prices can vary greatly it sounds like from case to case, do we just shoot really high on the GFE? sorry, i'm pretty new at all this and i don't understand this one...
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#1303711 - 12/11/09 04:50 PM
Re: RESPA changes 1-1-10
raitchjay
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Power Poster
Joined: Feb 2005
Posts: 6,559
Foxboro
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JJ-Unfortunately, HUD could care less about any seller paids spelled out in the contract. As I read it, they must be disclosed on the GFE.
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#1303815 - 12/11/09 06:00 PM
Re: RESPA changes 1-1-10
Jerod Moyer
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Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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ugh.. I even have that part highlighted.... thanks Captain Buzzkill...
They have something against the title compnaies here, don't they?
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#1303828 - 12/11/09 06:13 PM
Re: RESPA changes 1-1-10
#Just Jay
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Joined: Jul 2003
Posts: 17,397
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Ah but read this thread. If I'm reading it correctly, that's going to give us a big break in the 10% tolerance box. (Someone please correct me if I'm wrong.) They may like you better than glue real soon. 
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#1303835 - 12/11/09 06:17 PM
Re: RESPA changes 1-1-10
Truffle Royale
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Power Poster
Joined: Feb 2005
Posts: 6,559
Foxboro
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I have my first "official" training today. Processing and Underwriting sat in on a webinar the other day, but I am doing one today for Closing and my Initial Disclosure people at 2,then my first group of LO's Monday morning.
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#1303843 - 12/11/09 06:25 PM
Re: RESPA changes 1-1-10
TB 12
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Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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My formal recommendations for compliance:
Discontinue all consumer purpose lending, and focus on owner-occupied commercial lending only.
Yeah!! Now onto Reg E!
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#1304040 - 12/11/09 08:48 PM
Re: RESPA changes 1-1-10
RR Joker
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Junior Member
Joined: Nov 2009
Posts: 28
Illinois
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Quick question- whats everyone doing to comply with completing Page 3 of the settlement statement for the comparison of GFE and HUD charges. The instructions indicate the loan terms section must be completed in accordance with the information and instructions provided by the lender. The lender must provide this information in a format that permits the settlement agent to simply enter the necessary information in the appropriate spaces, without the settlement agent having to refer to the loan documents themselves.... so what's everyone providing to the title companies to complete this?
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#1304065 - 12/11/09 09:04 PM
Re: RESPA changes 1-1-10
QCL
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Platinum Poster
Joined: May 2004
Posts: 641
TEXAS
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You can select the provider for them. Please note Appendix C of the regulation:
There is a 10 percent tolerance applied to the sum of the prices of each service listed in Block 3, Block 4, Block 5, Block 6, and Block 7, where the loan originator requires the use of a particular provider or the borrower uses a provider selected or identified by the loan originator. Any services in Block 4, Block 5, or Block 6 for which the borrower selects a provider other than one identified by the loan originator are not subject to any tolerance and, at settlement, would not be included in the sum of the charges on which the 10 percent tolerance is based. Where a loan originator permits a borrower to shop for third party settlement services, the loan originator must provide the borrower with a written list of settlement services providers at the time of the GFE, on a separate sheet of paper. I have what I think is an odd twist to this: Loan officer just asked if we list the total for title services in box 4, must we also list this in box 6, since it would be a required service that the borrower can shop for? {I guess we're going to let the borrower shop for it. That's a whole 'nother question...} I was wondering about this too, Queen.. We don't care which title company they use but I didn't see where that block disclosd that they could shop for it. If we provide a list, then its 10% tolerance if they pick someone on the list, if they don't, the unlimited tolerance??? I'm sure this has been clarified but is the tolerance for each block #, line item or 4,5,6 in aggregate??
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#1304132 - 12/11/09 09:35 PM
Re: RESPA changes 1-1-10
ForceFull1
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Member
Joined: Jun 2009
Posts: 78
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Word of warning to both Laser Pro and Encompass users:
Both systems have Block 4 (title services) falling into the 10% tolerance group REGARDLESS OF WHETHER OR NOT THE CUSTOMER SELECTS A PROVIDER NOT ON THE LENDER'S PROVIDER LIST. I can't get a straight answer out of either company as to why they did this as it's pretty black and white in the reg and especially on page 3 of the GFE that these fees have no tolerance assigned if the provider chosen is not on the lender's list.
Harland tells me Laser Pro has a request for an "enhancement" to the system to correct this flaw, but it isn't considered "critical" so it might be awhile. I haven't heard anything back from Ellie Mae yet.
::sigh:: Hmm, I just attended an Encompass training and they specifically said if you check the box in the "B" column next to the title fees, it will take it out of the 10% tolerance bucket. That's what the "B" column is there for. However, we aren't upgraded to 360 yet so I haven't been able to check for myself if this works or not
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#1304140 - 12/11/09 09:42 PM
Re: RESPA changes 1-1-10
BFaith
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Gold Star
Joined: Nov 2003
Posts: 251
smalltown Iowa
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Hmm, I just attended an Encompass training and they specifically said if you check the box in the "B" column next to the title fees, it will take it out of the 10% tolerance bucket. That's what the "B" column is there for. However, we aren't upgraded to 360 yet so I haven't been able to check for myself if this works or not That option is not available for Block 4, at least according to page 22 of their self-study guide. Very weird that they said it was available. I am also in the same boat with not being upgraded. I'll cross my fingers that it is available next week when we've upgraded.
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#1304170 - 12/11/09 09:58 PM
Re: RESPA changes 1-1-10
ForceFull1
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Junior Member
Joined: Oct 2006
Posts: 40
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Summary of your loan section includes the question "Even if you make payments on time, can you monthly amount owed for principal, interest, and any MI rise?
I understand that this is directed at negative amortization however the payment of an ARM will rise even if you make payement on time. How are we to calculate the "maximum it can ever rise to"? Use the life time cap rate and the initial amount of the loan? Project the balance assuming the maximum per change increase until the life time cap is reached?
FAQ's offer no help and of course the Instructions are silent in regards to ARM. Any insights are GREATLY appreciated!
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#1304188 - 12/11/09 10:07 PM
Re: RESPA changes 1-1-10
complyshy
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10K Club
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
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Great... our LOS upgrades which were released this week are all fubared... just recieved word they hope to have things, such as basic addition, corrected mosy likely by the 22nd... at the earliest.  anyone else considering completing GFE's by hand on January 2nd?
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