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#1539236 - 04/22/11 01:12 PM New RESPA Roundup
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#1539250 - 04/22/11 01:27 PM Re: New RESPA Roundup Amos
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Still wondering if the information about a GFE not being provided means "never provided" or "provided late". I guess the cautious approach would take it as even "provided late".
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#1539252 - 04/22/11 01:28 PM Re: New RESPA Roundup raitchjay
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I love how they use another document to contradict what they published in their FAQs. At least this Roundup is consistent with other recent "guidance".

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#1539303 - 04/22/11 02:01 PM Re: New RESPA Roundup Always In Training
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The 801, 802 and 803 clarification (amendment) is the first rational decision HUD has made in a long time. Most of us have never agreed with how the FAQ was written but we followed it.

I really don't see the confusion on the GFE.

If a loan originator fails to deliver a GFE in clear violation of 24 CFR § 3500.7(a) and (b), the loan originator will have significant potential tolerance violations at settlement.

Failure to provide the GFE within 3 business days from receipt of the application is a clear violation of 3500.7(a) and (b). (b) deals with the delivery when a broker is involved.

§ 3500.7 Good faith estimate or GFE.

(a) Lender to provide. (1) Except as otherwise provided in paragraphs (a), (b), or (h) of this section, not later than 3 business days after a lender receives an application, or information sufficient to complete an application, the lender must provide the applicant with a GFE. In the case of dealer loans, the lender must either provide the GFE or ensure that the dealer provides the GFE.
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#1539307 - 04/22/11 02:02 PM Re: New RESPA Roundup Dan Persfull
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Yes...this is the most useful/helpful written "RESPA work" yet!
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#1539330 - 04/22/11 02:17 PM Re: New RESPA Roundup Amos
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I think what "Always in Training" was refering to was the contradiction between Banker's Compliance Blog regarding the Transcript Fee in block 3 and RESPA Round Up saying it needs to go in block 1. Please help clarify.
Kathleen

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#1539335 - 04/22/11 02:20 PM Re: New RESPA Roundup Dusty
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HUD clarified back in July, 2010 that it should be in block 1. It just took this long for them to put in writing 'officially'.
Last edited by RR Suzy; 04/22/11 02:22 PM.
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#1539343 - 04/22/11 02:30 PM Re: New RESPA Roundup RR Joker
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I was happy to see the GFE question cleared. I was going to have a tough (if not impossible) sell to management, that if we provide a GFE late, we pay the closing costs. Now it's clarified. Now I'm brave enough to present it. Although I don't find that we have a problem with providing late GFEs, it will put the fear of God into lenders.......or.....fear of money being drained out their individual branch cost centers.
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#1539353 - 04/22/11 02:37 PM Re: New RESPA Roundup swiggles
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So just to clarify,the tax transcript fee should not go in block 3 but rather as part of the processing or underwriting fee in block 1. So does that mean the transcript fee is not itemized in block 1 but rather it is just considered "part of processing and underwriting"? Thanks for any clarification.

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#1539362 - 04/22/11 02:45 PM Re: New RESPA Roundup RESPA who?
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I just posted a reply in the other BOL thread about the Tax Transcript Fee. Our blog on 4/7/11 was incorrect. This is a Block 1 fee.

I believe the RESPA Roundup issue on late GFE's is a travesty. Compliance has never been about eliminating errors. It's about mitigating errors. If a GFE is provided on day 4, it's late and is a violation. But people make mistakes. Should the bank lose hundreds or thousands of dollars because of a 1 day late GFE? Slap me on the wrist for being late, but don't require the bank to lose money (lots of money) for a administrative error.

I'll stand by my previous comments on RESPA Roundup: HUD doesn't even have legal authority to issue FAQs or the RESPA Roundup. Are these guidance even legal? Unfortunately, the bottom line is the examiners don't care. They only see the unreasonable guidance as the law and will enforce it.

Here's one thing I'm happy about with the Dodd-Frank Act: pulling RESPA away from HUD because they messed it up so badly.
(exhaling slowly and putting down my gun) smile
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#1539365 - 04/22/11 02:48 PM Re: New RESPA Roundup David Dickinson
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I totally agree, David. But, as we well know...harm the big bad ole bank...not the uninformed, uneducated consumer...always.
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#1539372 - 04/22/11 02:52 PM Re: New RESPA Roundup RR Joker
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I didn't mean to sound like I was happy about the opinion.....just happy that I have something in writing to where I can present it to management. They will make the call....not me. But I'll be off the hook....no hangman's noose for me at exam time.

David....I totally agree with what you wrote.....a travesty, to say the least....way overboard.
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#1539373 - 04/22/11 02:55 PM Re: New RESPA Roundup swiggles
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They should just skip the final HUD...and just let us issue it in lieu of a GFE up-front and be done with it, except for a valid CC. Just like an eTIL can be your fTIL.
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#1539461 - 04/22/11 03:56 PM Re: New RESPA Roundup RR Joker
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CFPB is going to do away with GFE's and sep. TIL's anyway. I hope Ms. Warren can make it as simple as she wants to. If she does, average Joe that should be reading it could be hired to create it. Wouldn't that be a fresh breath of clean air?
Last edited by Always In Training; 04/22/11 03:57 PM.
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#1539660 - 04/22/11 05:43 PM Re: New RESPA Roundup Always In Training
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I just talked to Rod Alba at the ABA. He has not read the Roundup yet, but I told him about it. He said (don't quote me) "there's no statutory authority for HUD to make this ruling (that a GFE delivered on the 4th day requires a bank to enter $0 in the GFE column of the tolerance tables). This is an administrative error and should be treated as such."

Rod indicated he would make this a priority next week, contact HUD and the ABA would be issuing a statement/guidance on this topic. Stay tuned.
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#1539671 - 04/22/11 05:52 PM Re: New RESPA Roundup David Dickinson
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What mechanism is there to keep us from losing credibility with our lenders when we appear to be wishy-washy on RESPA issues, but in reality, it's HUD?
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#1539700 - 04/22/11 06:07 PM Re: New RESPA Roundup raitchjay
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Originally Posted By: raitchjay
What mechanism is there to keep us from losing credibility with our lenders when we appear to be wishy-washy on RESPA issues, but in reality, it's HUD?


Give credit where credit is due smirk
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#1539711 - 04/22/11 06:16 PM Re: New RESPA Roundup DD Regs
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Quote:
Give credit where credit is due


I copy all the affected personnel with a copy of the FAQ or Roundup with a summation for that specific publication. If the next publication changes the previous guidance I copy them the new publication and a summation of the new items addressed and then a summation of any changes which begins. "HUD is at it again!!! They have changed their minds once again." And then summarize what changed from the previous guidance.
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#1539743 - 04/22/11 06:32 PM Re: New RESPA Roundup Dan Persfull
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Ditto what Dan Said! laugh
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#1539803 - 04/22/11 07:14 PM Re: New RESPA Roundup RR Joker
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Somebody needs to sue HUD and just get it over with and put them in their place.

I think they carefully worded the roundup to attempt to cover their donkeys on previous issuances on the late GFE issue.

Notice they don't specifically address the late delivery issue. They only state: "Where the loan originator has not provided the consumer with a GFE, when completing the HUD-1 comparison chart the loan originator’s instructions to the settlement agent must indicate that the settlement agent must fill in the GFE columns with $0 and the HUD-1 columns with the actual charges from Page 2 of the HUD-1."

I agree with that statement.

However, they took the chickenpoop approach by originally stating: "If a loan originator fails to deliver a GFE in clear violation of 24 CFR § 3500.7(a) and (b)" without clarification and it still reguires someone to read between the lines regarding the late delivery issue.

Those section of RESPA are written no different than how sections of Regulation Z are written and under a late delivery of a TIL, you don't have to refund all prepaid finance charges nor does it extent the right of rescission.

I look forward to the ABA taking this to task.

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#1539831 - 04/22/11 07:30 PM Re: New RESPA Roundup rlcarey
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I'm sure there are good people at HUD, but I just wonder if they have any idea how bad they have screwed up a regulation that for the most part was working just fine for those of us that complied and that they have lost all respect they may have had of anyone in the industry.
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#1539994 - 04/25/11 12:02 AM Re: New RESPA Roundup Dan Persfull
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Personally, I can't wait for this to be absorbed by the CFPB ... Surely they'll do a better job than HUD administrating this mess.

I take the same approach as others - when a new issuance is released I forward it with a summarization with a clear statement that this is HUD's interpretations.

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#1540029 - 04/25/11 01:07 PM Re: New RESPA Roundup Dan Persfull
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Dan, FWIW, I'm with you regarding HUD having lost all respect that anyone in the lending business may have had for (most of) them, but, I disagree that the regulation, or more specifically the disclosure form, "for the most part was working just fine".

From a consumer's perspective it would be very difficult to shop lender costs, blocks 1 & 2, because, unless the lender was totally open and provided a separate breakdown, there is no way for the consumer to know what costs are included in those blocks. I think fees included in block 1 should be itemized just as they are in block 3.

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#1540040 - 04/25/11 01:19 PM Re: New RESPA Roundup WHEDA
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What, really, is the difference in a lump sum total and a breakdown? The bottom line is the same.
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#1540059 - 04/25/11 01:40 PM Re: New RESPA Roundup WHEDA
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Originally Posted By: WHEDA
DI disagree that the regulation, or more specifically the disclosure form, "for the most part was working just fine".


My comment was referring to the old GFE.
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