PERL Podcast 47 / RESPA Changes

PERL_iTunes_300pxThe Real Estate Settlement Procedures Act was passed by Congress in 1974 to provide consumers and borrowers with disclosures about closing costs when buying a home. If you own a home, you’ve heard of the Good Faith Estimate and Truth in Lending Form. These are all a part of RESPA. Well, starting January 1st, HUD is rolling out a series of new changes that will greatly affect the mortgage industry in 2010. They’re basically consolidating these forms so that there are “no surprises” at closing tables — and home buyers will have the peace of mind of knowing that fees won’t be able to change from the time they apply to the time they close. Trick is, the lender will eat any costs under unapproved changed circumstances. Interesting. This basically means that if, say, your appraisal fee goes up from the original quote on your Good Faith Estimate, the lender will eat the fee. Dan Fogel, an attorney and mortgage consultant with PERL, explained all of these changes — and if you follow the housing market and changes in our national financial markets, you’ll be hearing more and more about this. Check it out. For more podcasts, visit the PERL archives.PERL Podcast 47 / RESPA Changes

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