For mortgage applications taken on or after January 1, 2010, lenders and Brokers are required to provide borrowers with a new standard Good Faith Estimate (GFE) that clearly summarizes key loan terms, fees, and closing costs. At settlement, the closing agent must provide a new HUD-1 Settlement Statement that offers a side-by-side comparison of the estimated charges from the GFE to the actual charges on the HUD-1.
There are many resources available to explain the details of the new amendments. We recommend that you seek specific legal counsel and/or call your regional FHA Home Ownership Center to answer questions. HUD has provided a significant amount of helpful information on its website: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
Our policies and procedures related to these sweeping changes, as well as copies of the forms you will need, are included in our RESPA Reform Memo.
If you have any questions, please contact your AE.