The U. S. Department of Housing & Urban Development (HUD) has issued an update to its publication, New RESPA Rule FAQs. These revisions contain new and complex regulations, affecting many aspects of mortgage loan originations, and with most of the regulatory changes scheduled to take full effect on Jan. 1, 2010. The New RESPA Rule FAQs are comprised from industry questions and issues. This most recent update contains several new answers to industry questions plus a new section for reverse mortgages.
Updates to the RESPA FAQs include:
► The time of the when a lender must provide a Good Faith Estimate (GFE) or revised GFE for a loan when the application was taken by a broker;
► How to properly disclose a service provider fee on a GFE when a government program restricts the choice of providers to those that are pre-approved;
► How to disclose the loan amount, loan term, interest rate and monthly payment amount on a GFE for a reverse mortgage; and
► Whether a GFE should state that a reverse mortgage has a balloon payment or an escrow account feature.
Click here to access a copy of the updated New RESPA Rule FAQs (as of 11/17/09).
For more information, visit www.hud.gov.