New RESPA Rules May Impact Current Relocation Policies

On January 1, 2010, a new RESPA (Real Estate Settlement Procedures Act) rule goes into effect. It requires lenders and mortgage brokers to provide customers with a standard Good Faith Estimate (GFE) that discloses key loan terms and closing costs. Current relocation policies or programs may have specific language or capped amounts that need to be updated. Our Client Program Managers will be following up with our clients to review the potential impact.

The new rule changes the way costs are shown on both the GFE and HUD-1 and how costs are itemized. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. They are intended to simplify charges by the lender, settlement agent and other service providers in addition to holding lenders and brokers more accountable to their GFE.

Click here to see the full HUD press release or contact your Client Program Manager with questions.