HUD Posts FAQs on Real Estate Settlement Procedures Act

From HUD News Release

Under the new RESPA rules consumers will, for the first time ever, be able to use the Good Faith Estimate to easily compare their estimated loan offer with the one to which they actually agree. It will provide clear, transparent disclosure of loan information that consumers can use to shop for the best loan - resulting in lower interest rates and lower origination and settlement costs for borrowers. This will virtually eliminate the kinds of unfair junk fees that surprise so many borrowers at closing. In the end, this greater clarity and transparency will save consumers hundreds of dollars in total loan costs.

The FAQs can be found on the HUD website. Some of the topics covered include requirements and delivery of the Good Faith Estimate, the HUD-1 Settlement Statement and specific information about completion of the GFE and HUD-1 forms.

The new RESPA regulations were published November 17, 2008 and are scheduled to take full effect on January 1, 2010. On that date, HUD will require that loan originators provide borrowers with the new standard Good Faith Estimate and closing agents provide borrowers with the new HUD-1 settlement statement