Effective Jan 1, 2010, all lenders for new loan applications must use a new GFE form and all settlement attorneys must prepare a new HUD-1 for the closing. These new forms are supposed to assist the Borrower with understanding the loan terms and settlement costs. Additionally, these new procedures should increase the accuracy of settlement cost estimates.
In the long run, the new GFE and HUD-1 will probably prove to be beneficial; however, in the immediate term, there are a number of problems and issues with these new RESPA forms and rules. Attached to this email are two memos which discuss the pro’s and con’s of the RESPA changes. (Contact us if you would like a copy of these memos) The memos are “What the Realtor Needs to Know” and “What the Lender Needs to Know” about the New GFE and HUD-1. Please let me know if you think of more information that should be added to these memos.
Please contact me if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.