RESPA
Mortgage Loan Compliance | HUD’s RESPA Rule Implementation
October 9, 2009 by sueyourlender · Leave a Comment
“We are absolutely moving forward on RESPA,” HUD assistant secretary David Stevens told MortgageWire. “Jan. 1 is the implementation date.”
The Department of Housing and Urban Department is going ahead with the implementation of a RESPA disclosure rule despite pleas by some industry groups to delay the effective date, according to a top HUD official.
Some industry groups are complaining that the new Real Estate Settlement Procedures Act rule is complex and HUD is still providing guidance on implementation issues. The RESPA rule requires lenders and mortgage brokers to disclose their fees upfront on a standardized good faith estimate. The originator’s fees cannot be increased before closing. The layout of the GFE and the revised HUD-1 settlement sheet also provides a clearer disclosure of the closing costs and how much the consumer will pay.
“I think the new disclosures are going to have a very positive impact on consumers,” Mr. Stevens said.
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RESPA
Documents You Will Sign When You Close Your Home Loan
October 9, 2008 by Mortgage Align · Leave a Comment
When you close there will be numerous documents that you will need to sign to complete the closing process. Use your attorney or real estate agent to review these documents before you sign.
- Real Estate Settlement Procedures Act (RESPA) – this document simply informs you about the closing process and the financial obligations for your mortgage
- Truth in Lending Disclosure Statement (TIL) – this document contains the terms and conditions of the loan.
- HUD-1 Form (settlement statement) – this form notes the payments made by all parties in the transaction.
- Mortgage Note – this is your commitment as a buyer to repay the mortgage. It will include the loan amount, interest rate, payment information, maturity date and the change dates (for adjustable rate mortgages).
- Security Instrument – sometimes referred to as your mortgage or “deed of trust.”
- Warranty Deed – this is the deed that transfers the title from the seller to the buyer.
RESPA
RESPA – Real Estate Settlement Procedures Act
October 8, 2008 by Mortgage Align · Leave a Comment
RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.
For more information on RESPA, visit the U.S. Department of Housing and Urban Development website.
