NEW RESPA RULES RECEIVES 120 DAY PERIOD OF RESTRAINT

On January 1, 2010, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares consumers' final and estimated costs.

HUD announced a period of "restraint" in enforcing the new Real Estate Settlement Procedures Act (RESPA) rule, which will go into effect on January 1, 2010. The period of restraint will last for 120 days. Enforcement restraint will be shown for FHA approved lenders acting in good faith to comply with the new rule, including the mandatory Good Faith Estimate and the HUD-1.

With the assistance of Suzette Nasser, Vice President and Senior Title Officer at Title Guaranty of Hawai'i, three videos were developed to provide HAR members with brief overview to help you understand the changes. Please take a few minutes to view these videos:

Good Faith Estimate (GFE)

HUD-1 Settlement Statement  

Access YouTube Videos on HUD's Mortgage Reform

Laure McElwee, Realtor (S)
'Lava Laure'
Sun and Sea Realty, Inc.

75-6547 Naniloa st.

Kailua Kona, HI. 96740

808.217.0429undefined
866.404.4789 Fax
LavaLaure@Yahoo.com

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