On February 23, 2011 the Federal Reserve Board issued a final rule and requested public comment on a second rule under Regulation Z to revise the escrow account requirements for certain home mortgage loans. The revisions to the regulation, which implements the Truth in Lending Act (TILA), are being made pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rule implements a provision of the Dodd-Frank Act that increases the annual […]
Category: RESPA
PENALTY FOR FAILURE TO DELIVER A TIMELY GFE
Apparently examiners have recently slammed a few lenders for the failure deliver a GFE or for the failure to provide the GFE within the required three business day period. The penalty examiners are imposing for this RESPA violation is a refund of all fees imposed in the transaction. Yes; you read that correctly, a refund of all fees. Some bankers are asking what happened to the 10% tolerance applicable to certain items on the GFE. […]
New RESPA Settlement Cost Booklet
Rumor: HUD has published a new Settlement Cost Booklet This rumor is true. The new booklet appeared on HUD’s website on July 15th. Rumor: We have to throw out our existing supply of booklets and start using the new booklet immediately. This rumor is false. You may use the versions of the booklet published in December 2009 or January 2010, or you may use the new booklet. When you exhaust your existing supply of booklets […]