At Help-U-Sell® and Bank of America®, we are committed to helping our valued customers become well-informed, responsible homeowners. With this in mind, it’s important that your clients understand how the U.S. Department of Housing and Urban Development has made changes to RESPA/Regulation X.
Starting January 1, 2010, all new first mortgage applications received will include newly redesigned forms and include the following:
- Good Faith Estimate (GFE) and HUD Settlement Statement (HUD-1) Forms. Redesigned and with substantial changes, the GFE and HUD-1 forms will standardize how fees are disclosed — making it easier for borrowers to compare offers between lenders. The GFE and HUD-1 will also be aligned to provide even greater transparency for borrowers when comparing settlement charges at closing.
- Settlement Service Provider List. Lenders will be required to provide the borrower with a Settlement Service Provider List that includes service provider names. This pertains to any service where a settlement service is required but the borrower can select a provider — for example: title, pest and septic inspections.
- Fee Tolerances. In an effort to improve the accuracy of the settlement charge information provided to borrowers, new restrictions will be placed on lenders regarding how and when fees disclosed on the GFE may change. Changes to settlement charges between the final GFE and HUD-1 will be limited based on three categories of “fee tolerance.” The guidelines for these tolerance categories are set forth on the new GFE form.
To learn more about new Regulation X changes, talk to your dedicated Bank of America® mortgage loan officer today.