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#1359980 - 03/18/10 05:41 PM
Re: RESPA changes 1-1-10
JustMe
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10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
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I have the same thing.
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#1359985 - 03/18/10 05:44 PM
Re: RESPA changes 1-1-10
Dan Persfull
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Junior Member
Joined: Nov 2007
Posts: 49
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Why am I not shocked???
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#1359988 - 03/18/10 05:45 PM
Re: RESPA changes 1-1-10
JustMe
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Gold Star
Joined: Nov 2009
Posts: 263
PA
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#1359998 - 03/18/10 05:51 PM
Re: RESPA changes 1-1-10
manylayers
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Power Poster
Joined: Nov 2008
Posts: 4,132
Somewhere in the middle
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The complete list of scheduled webcasts follows. All times are Eastern Time. Live links for the webcast and training materials will appear in a box on the webcast page approximately 1/2 hour before the broadcast taking you to the video. Archived webcasts are usually available in the video library the day after their initial broadcast.Looks like we will be seeing the recorded version tomorrow Nice soothing music though
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#1360002 - 03/18/10 05:51 PM
Re: RESPA changes 1-1-10
MN Banker
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Junior Member
Joined: Nov 2007
Posts: 49
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Truffle, between you and Dan, I am getting my afternoon laughs. Thanks!
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#1360003 - 03/18/10 05:52 PM
Re: RESPA changes 1-1-10
manylayers
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Gold Star
Joined: Oct 2009
Posts: 270
State of Confusion
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I have this on my calendar!!! I'm doing my first review of loan applications post 1-1-10...and trying to keep all the rules straight....and hoping that i'm not misunderstanding any fundamental parts of the new GFE and HUD.
What i am seeing is that we need to do a better job of documenting when and why a GFE is reissued. and when an interest rate is locked and when it is not.
Has anyone else begun to audit their files? what are you finding? suggestions for improvement?
1. That attorneys aren't completing the HUD-1 completely or they don't understand the rule and fight us when we want items on certain lines including the agent/underwriter breakdown of the fee. 2. Vendor charges are not being putting in the right section. We already ate $10 that we didn't need to (ok it was only $10) 3. We eat a lot of teeny amounts due to rounding on the transfer taxes. Why not a 1% tolerance?
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#1360009 - 03/18/10 05:54 PM
Re: RESPA changes 1-1-10
JustMe
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Gold Star
Joined: Oct 2009
Posts: 270
State of Confusion
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Is it just me or has the webcast not started yet? I just have the purple box with the title and says it will start in a minute. It's been that way for 10 minutes now. I'm blocked from the website - no streaming media <sigh>. Hopefully HUD will post later
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#1360010 - 03/18/10 05:55 PM
Re: RESPA changes 1-1-10
JustMe
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10K Club
Joined: Nov 2002
Posts: 20,654
The Swamp
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No one was brave enough to field this one you guys...Let me give you a final piece of an answer I got from HUD the other day regarding bridge loans:
"You may be right. I am not going any steps further right now Suzy. I have looked at the rule and lots of background and subsequent movements to understand that this might not have been high up on the hypothetical scenarios of those that drafted the rule.
I understand that some manifestation of this issue is being taken up officially now; and I believe that they make tremendous attempts to decide consistent with the language and intent of the rule. I am not privy to final decisions on this point.
Wish I could be more help, but at this moment, it is not for me to further analyze/argue/opine about."
Guess what guys...I wasn't even argueing! LOLOLOLOL!
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My opinion only. Not legal advice. Say you'll haunt me - Stone Sour
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#1360041 - 03/18/10 06:25 PM
Re: RESPA changes 1-1-10
SnuffytheSeal
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Diamond Poster
Joined: Nov 2004
Posts: 2,307
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Is it just me or has the webcast not started yet? I just have the purple box with the title and says it will start in a minute. It's been that way for 10 minutes now. I'm blocked from the website - no streaming media <sigh>. Hopefully HUD will post later We were having problems with Windows media player. We installed the latest version and we still were having issues. The audio would cut in and out and the video would freeze up. We called the number HUD provided for technical assistance and got voice mail. We gave up and will try to access the archived version when it is available. I hope HUD will post a PPT file with the slides they showed. If anyone is able to successfully view the entire webcast, please let us know if it will be worth our time to view the archived webcast. Thanks.
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#1360049 - 03/18/10 06:35 PM
Re: RESPA changes 1-1-10
RR Joker
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Power Poster
Joined: Nov 2008
Posts: 4,132
Somewhere in the middle
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I have a couple of questions about quoting Title insurance for block 4 and OTI for block 5 on Non-Conforming Portfolio loans.
Question 1 If we do not require title insurance of any type on our portfolio loans, is it my understanding from the FAQs and REg that no matter what I would be required to quote OTI since the borrower may choose to go buy it.
Based on FAQ GFE – Block 5 1) Q: Do loan originators have to provide a price for Owner‘s title insurance on the GFE?
A: Loan originators must provide an estimate of the charge for an Owner‘s title insurance policy in Block 5, "Owner‘s title insurance" on the GFE on all purchase transactions. For non-purchase transactions, the loan originator may enter "NA" or "Not Applicable" in this Block.
Question 2 But in regards to lenders title insurance, since we do not require it, it would not be required to be quoted?
Based on the instructions from the REG for block four:
Block 4, “ Title services and lender's title insurance. ”In this block, the loan originator must state the estimated total charge for third party settlement service providers for all closing services, regardless of whether the providers are selected or paid for by the borrower, seller, or loan originator. The loan originator must also include any lender's title insurance premiums, when required, regardless of whether the provider is selected or paid for by the borrower, seller, or loan originator. All fees for title searches, examinations, and endorsements, for example, would be included in this total. The charge shown in this block is subject to an overall 10 percent tolerance as described above.
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#1360153 - 03/18/10 07:40 PM
Re: RESPA changes 1-1-10
Truffle Royale
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Gold Star
Joined: Oct 2009
Posts: 270
State of Confusion
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did they say anything about posting it and if so when?
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#1360204 - 03/18/10 08:04 PM
Re: RESPA changes 1-1-10
pjs
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10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
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Everyone hears things differently but:
Here's some high lights I took from the Webinar: 1. If the consumer does not want to complete an application until they decide they want to proceed with a loan we can issue a generic worksheet of typical charges associated with the loan. The worksheet cannot in any way resemble a GFE or have the words this is a good faith estimate of charges. 2. Pre-approvals - they will be updating the Q&A that says a lender can request documentation to verify information provided on the application for a pre-approval - however if all the necessary information is provided to constitute an application the GFE has to be issued within the 3 business days of receiving the application. Delivering the GFE cannot be dependent on receiving the verification documents. 3. Third party subordination charges are shown in Block 3. Employment verification charges are shown in Block 3. If these charges are learned about after the issuance of the initial GFE they would constitute a changed circumstance allowing the issue of a revised GFE. 4. Title Services and Lenders title insurance in Block 4. They will be updating the Q&A to clarify the itemization of the settlement/closing fee. Currently the Q&A indicates this fee has to be itemized, however according the Webinar this fee only has to be itemized if the title services provider pays a 3rd party to conduct the closing or we use a different provider to conduct the closing other than the title services provider. Therefore since these will now be lump sum charges we do not have to be concerned about including the closing fee in the APR unless it is itemized in the 1100 series. 5. Owners Title Insurance - OTI must be disclosed for all purchase transactions. 6. Block 8 - Transfer taxes - driven by state law. If state law requires the seller to pay this fee the fee does not have to be disclosed. If state law divides the fee between buyer and seller the fee the buyer is responsible for under state law must be disclosed If state law divides the fee between buyer and seller and if you have a sales contract available and it indicates the seller will pay all or a greater portion of the fee than required by state law you must still disclose what state law requires the buyer to pay. In other words you can never disclose less than what is required by state law for the buyer to pay. If there is no state law governing who pays the fee then 100% of the fee must always be disclosed as being paid by the buyer regardless of the sales contract. Transfer taxes include intangible taxes, excise taxes, doc stamps, etc. Therefore these taxes in some area can apply to refinances as well as purchases.
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. 8. Cure - depending on the "complexity" of the cure you can show it as a credit in the 200 series of the HUD 1 or you can show the cure by line item. The easiest, simplest and the least prone to errors would be disclosing an overall credit in the 200 series and this requires the use of a HUD 1.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1360233 - 03/18/10 08:20 PM
Re: RESPA changes 1-1-10
DD Regs
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Power Poster
Joined: Nov 2008
Posts: 4,132
Somewhere in the middle
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I have a couple of questions about quoting Title insurance for block 4 and OTI for block 5 on Non-Conforming Portfolio loans.
Question 1 If we do not require title insurance of any type on our portfolio loans, is it my understanding from the FAQs and REg that no matter what I would be required to quote OTI since the borrower may choose to go buy it.
Based on FAQ GFE – Block 5 1) Q: Do loan originators have to provide a price for Owner‘s title insurance on the GFE?
A: Loan originators must provide an estimate of the charge for an Owner‘s title insurance policy in Block 5, "Owner‘s title insurance" on the GFE on all purchase transactions. For non-purchase transactions, the loan originator may enter "NA" or "Not Applicable" in this Block.
Question 2 But in regards to lenders title insurance, since we do not require it, it would not be required to be quoted?
Based on the instructions from the REG for block four:
Block 4, “ Title services and lender's title insurance. ”In this block, the loan originator must state the estimated total charge for third party settlement service providers for all closing services, regardless of whether the providers are selected or paid for by the borrower, seller, or loan originator. The loan originator must also include any lender's title insurance premiums, when required, regardless of whether the provider is selected or paid for by the borrower, seller, or loan originator. All fees for title searches, examinations, and endorsements, for example, would be included in this total. The charge shown in this block is subject to an overall 10 percent tolerance as described above.
Bump...This may have gotten lost in the discussion of the HUD webinar. I hope they post new FAQs to certify Dan's summary.
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#1360266 - 03/18/10 08:39 PM
Re: RESPA changes 1-1-10
DD Regs
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10K Club
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
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OT has to always be quoted in a purchase transaction.
What do you do in place of requiring title insurance? Do you do a title and lien search, do use a company that guarantees the title up to a certain amount via an affidavit? Any of those charges would be title services and disclosed in Block 4.
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The opinions expressed are mine and they are not to be taken as legal advice.
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#1360584 - 03/19/10 01:37 PM
Re: RESPA changes 1-1-10
Dan Persfull
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Platinum Poster
Joined: Aug 2006
Posts: 980
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8. Cure - depending on the "complexity" of the cure you can show it as a credit in the 200 series of the HUD 1 or you can show the cure by line item. The easiest, simplest and the least prone to errors would be disclosing an overall credit in the 200 series and this requires the use of a HUD 1. They also said if doing the credit on page 1, that this would no longer carry over to the comparison chart like the FAQ currently states. So, your comparison chart will still show it as out of tolerance.
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#1360936 - 03/19/10 05:03 PM
Re: RESPA changes 1-1-10
Reads Regs
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Member
Joined: Mar 2008
Posts: 90
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Would a tax transcript fee be included in box 1 or 3 of the GFE?
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