On November 17, 2008, HUD issued its Final Rule amending
Regulation X, the implementing regulation of the Real Estate Settlement
of 1974 (RESPA). 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.
On April 2, 2010, the U. S. Department of Housing and Urban Development (HUD) issued the Eighth Update to its publication New RESPA Rule FAQs.
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 FAQs are comprised
from industry questions and issues. This most recent update contains several new answers to industry questions.
Effective: January 1, 2010.