Real Estate Settlement Procedures Act (RESPA) Posted by AVCU on 10:36 AM

As of the first day of 2010, credit unions and other mortgage lenders must comply with changes to the Real Estate Settlement Procedures Act’s (RESPA) implementing rules. These rules, finalized in November 2008 by the Department of Housing and Urban Development (HUD), require the use of revised Good Faith Estimate (GFE) forms and HUD-1 Settlement Statement forms.

Recently, the U.S. Department of Housing and Urban Development (HUD) posted on its website an updated "Shopping for Your Home Loan: HUD's Settlement Cost Booklet," which lenders are required to give to consumers within three days of their applying for a mortgage loan. The 49-page booklet has been revised to reflect the information and format of the revised forms.

HUD significantly revised the GFE requirements to ensure that the estimates provided by lenders or brokers are more accurate, and to facilitate comparison shopping among lenders. Moreover, the changes made in the HUD-1 form were designed to facilitate easier comparison by the borrower of the information provided in the GFE form and what actually is owed at settlement.

Click here for a copy of the updated HUD Settlement booklet.