MortgageJaw.com

Word to our government;

Please before making laws and regulations, consult with a panel of experts from the industry and listen to the actual feed back before making laws and regulations. I know our representatives have tons of people telling them what to do……..but please seek out experts first……and not just a few, have a panel of them. Perfect example is the new GFE that went from 1 page to 3 pages. The GOOD thing is this form makes the fees stay within reason from the time of application to closing so no surprise fees for borrowers. The BAD thing is you forgot to check how different states collect certain fees and the buyers actually get a credit for lets say taxes for the time the seller was living in the property. Also don’t forget FHA collects an upfront mortgage insurance fee up front that gets financed back into the mortgage amount if borrower chooses that option. Last thing, what if the seller was giving a credit on the sales contract? These credits do not show up on the GFE, so please fix it!

Well, here is a video the great guys at Thinkbigworksmall did about HR 600 House bill that is taking us right back to where we were doing loans before. Please make up your mind……seller to help the buyer out for down payment and closing costs or not help the buyer……..let us know please Mr. Government.

Reinstating Seller Paid Down Payment Assitance

Here is a summary of the NEW RESPA Rule going into place January 1st, 2010.

On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. The new RESPA rule became effective on January 16, 2009, but provided a one-year transition period for the mortgage industry to incorporate these changes. HUD will continue to work with the mortgage industry during this period, including providing a comprehensive set of frequently asked questions (FAQs) on its website.

***Now below is the actual letter release from HUD***

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced that for the first four months of 2010, the staff of the Mortgagee Review Board (MRB) will exercise restraint in enforcing new regulatory requirements under the Real Estate Settlement Procedures Act (RESPA), due to take full effect on January 1. The MRB instructed its staff to exercise such restraint in considering an action against FHA-approved lenders who have demonstrated that they are making a good faith effort to comply with RESPA’s new requirements.Hope this helps

In addition, HUD is asking other federal and relevant state enforcement agencies to exercise the same 120-day restraint in enforcement for non-FHA originators and other settlement service providers who demonstrate the good faith effort to implement RESPA’s new rules. In determining whether a mortgagee has made a good faith effort, MRB staff will consider whether the mortgagee has relied on the new RESPA rule and other written guidance issued by the Department, and the extent to which the mortgagee has made sufficient investment and commitment in technology, training, and quality control designed to comply with the new rule.

“We will work with those who are making an honest effort to work with us as we implement these important new consumer protections,” said HUD Secretary Shaun Donovan. “While we will not delay implementation of RESPA’s new requirements, we are sensitive to the concerns of the industry as it integrates these new rules into their day-to-day business practices.”

On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. The new RESPA rule became effective on January 16, 2009, but provided a one-year transition period for the mortgage industry to incorporate these changes. HUD will continue to work with the mortgage industry during this period, including providing a comprehensive set of frequently asked questions (FAQs) on its website.

By improving the disclosures borrowers receive when applying for a mortgage, and by promoting comparison shopping, HUD believes its new RESPA regulation will save consumers an average of nearly $700 in mortgage costs.