Have there been any changes to RESPA since 2019?
Can I hire my brother who is in the mortgage industry, to refer business for a newly formed title settlement company? Can a title and real estate settlement company market services together? Does that person have to be a partner or employee of the business to not violate RESPA?
Does a bank have to continue to make escrow taxes and insurance on behalf of borrower when they have stopped making their monthly payments? In other words, they are about to be in default?
We deal mostly with foreign national borrowers. We understand RESPA and TILA do not apply, however we disclose to these
borrowers. In the event we stop disclosing, what documents do we still need to provide the borrowers with --application, ARM
disclosure, LE and CD? Please clarify.
The 'dwelling' definition states the number of acres is not considered for HMDA; however, the farm loan exemption states an institution may use a reasonable standard to determine the primary use of the property, such as Reg X's definition. This seems conflicting since Reg X states the use of the property does not matter.
If the initial GFE did not list the name, address & phone number of originator can they do a revised one and be okay or will they have to use $0.00 on the HUD-1 comparison and pay the borrowers the difference between $0.00 and the actual cost?
I've had this same situation come up twice in recent weeks and I would like to know what the correct procedure is. Loan application was taken using borrower-estimated sales price and 70% LTV for the loan amount was calculated (for conversation's sake we will say $100,000 value and $70,000 loan amount). The initial application and disclosures were completed using these figures. A few weeks later, the borrower selected a property and the value and loan amount change. The processor re-disclosed the loan at the lower amount and sends it for Underwriting. Since the loan has never been seen by Underwriting before now, does the UW have to Counteroffer the loan for compliance purposes?
We are conducting an internal audit on RESPA. We have noted several variances on the HUDs with different processors. The section titled Loan terms at the end of the HUD that has information concering the rates and dates and payment dates on variable rate loans is filled out different with each processor. Is that something we need to correct and if so what is the best way to do this. Some are not filled in at all.
If we create an open house listing sheet and cobrand it with a realtor, would this be a RESPA violation if we, the lender, paid all costs for production of the flyer? A listing sheet includes the property address and some financing scenarios for the specific property.
The most frequently violated compliance requirements involve the Real Estate Settlement Procedures Act (Regulation X), a FDIC list revealed.