The federal statute called the Real Estate Settlement Procedures Act (RESPA) has not been subject to recent statutory change but has been subject to very significant regulatory change. Most of the specific technical changes were already effective in 2009 but a very key change became mandatory January 1, 2010. That is the new format for HUD-1 form disclosures of settlement costs to home buyers/borrowers-- for most residential closings. This is now a three page document rather than the previous two pages.
HUD has provided certain information to help those in industry understand the new rules. This includes fill-in blank versions of the new HUD-1 and other information at their website: www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm. Examples of the new disclosures are included within this section as well. There is also what they call a plain english explanation of how the costs of a mortgage are reflected first on the GFE then on the HUD-1; this includes the handling of "changed circumstances."
Additional information developed by AEA industry specialists is being added to a companion section of the website. While this material has not undergone specific legal review it is very useful general and specific information to help AEA members avoid mis-steps in understanding the new rules.
Updated August 2010. |
