Revisions to HUD-1 Settlement Statement and Good Faith Estimate FormsFebruary 2009 – Newsletters In The Zone
The U.S. Department of Housing and Urban Development (HUD) issued a final rule under the Real Estate Settlement Procedures Act (RESPA) requiring amendments to the Settlement Statement and the Good Faith Estimate (GFE) forms. The new GFE is meant to provide consumers with a valuable document that can be used to shop around among lenders and mortgage brokers in comparing charges. In addition, the final rule proposes revisions to the HUD-1 Settlement Statement form in order to make the GFE and HUD-1 easier to compare, with the same language being used in both forms for categories of charges. In addition, the new HUD-1 will contain a comparison section comparing the GFE to the HUD-1 charges.
Compliance with the new requirements is not required until January 1, 2010, but lenders, brokers and settlement agents may begin voluntarily using the new forms immediately.The following is a link to the HUD website where more information on this matter may be obtained: http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.
For more information regarding these new requirements, please contact Kimberly Freimuth at 215.918.3627 or [email protected].