The Department of Housing and Urban Development (HUD) is hosting a series of online presentations on new mortgage rules.
Beginning next year, HUD will require that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs. Closing agents will also be required to provide borrowers with a new HUD-1 Settlement Statement that clearly compares consumers’ final and estimated costs. The new Real Estate Settlement Procedures Act (RESPA) rule became effective Jan. 16, 2009, but provided a one-year transition period for the mortgage industry to incorporate these changes. HUD will continue to work with the mortgage industry during this period, including providing a comprehensive set of frequently asked questions on its Web site.
In addition to the stepped up training and technical assistance announced today, HUD is instructing its Mortgagee Review Board (MRB) to exercise restraint in enforcing RESPA’s new requirements for 120 days. The MRB instructed its staff to exercise such restraint in considering an action against Federal Housing Administration-approved lenders who demonstrate a good faith effort to comply with RESPA’s new requirements.
The remaining presentations are scheduled for Dec. 10, 11, and 16.
