New RESPA Rule FAQs - part 2

The Q&As below are those that were added by HUD December 30, 2009

GFE - Written list of providers - Page 12
8) Q: In some cases, law or local custom may require, or consumers may prefer, to have one provider conduct the settlement and another provider perform the remainder of the services included within the ?Title Services and Lender?s Title Insurance? category on the GFE (Block 4 on page 2). How should the fees and providers for these services be listed on the GFE, the Written List of Service Providers, and the comparison table on page 3 of the HUD-1 (page 2 of the HUD-1A)?

A: The preferred method of disclosing the GFE Block 4 charges on the Written List of Service Providers is to list a set of single providers where each is capable of coordinating or performing all of the services provided within the ?Title Services and lender?s title insurance? category. Due to a wide variety of practices across the country, an alternate option is explained below that allows for the separate identification of providers to conduct settlement (or closing) and providers of lender?s title insurance and the related services on the Written List of Providers and the HUD-1/1A.

GFE

In all cases, the GFE shall be completed with the total estimated fees for ?Title Services and Lender?s Title Insurance? combined in Block 4. Provider names are not listed on the GFE.

Written List of Providers

For Block 4, the loan originator may separate the services in the Written List of Providers to show providers that conduct settlements (or closings) separately from providers of lender?s title insurance and the related services
If Block 4 services are separated on the Written List of Providers, the associated estimated fee for the component service must be listed next to the header for the list of providers of that service The sum of the estimated fees for the two services must equal the amount in Block 4
Only two (2) categories of service providers may be listed: providers that conduct settlements (or closings) and providers of lender?s title insurance and the related services

HUD-1 page 3, HUD-1A page 2

If the consumer chooses neither service provider from the list:

The lump sum of Block 4 would be placed in ?Charges that Can Change?
Both service providers should be listed in the blank for service provider names, for example: XYZ Settlement Services/ABC Title Agency

If the consumer chooses a provider of one of the services from the list:

The service provider that was chosen from the Written List would be included in ?Charges That in Total Cannot Increase More than 10%? with the associated estimated fee from the Written List of Providers in the GFE column and the actual fees for that service from that provider in the HUD-1 column. The service performed by the provider not chosen from the Written List of Providers would be listed in the ?Charges that can Change Section? with the associated estimated and actual fees.
The total of the estimated fees in the GFE column (from both tolerance sections) must equal the amount in Block 4 of the GFE
The total of the actual fees in the HUD-1 column (from both tolerance sections) must equal the total of all ?Title services and lender?s title insurance? actual charges

If the consumer chooses the providers of both services from the Written List:

The Block 4 total is listed in the ?Charges That in Total Cannot Increase More than 10%? column.
Both service providers should be listed in the blank for service provider names, for example: XYZ Settlement Services/ABC Title Agency
The total estimated and actual fees for both providers would be listed in the respective GFE and HUD-1 columns.

Settlement cost booklet - Page 52

1) Q: When will the Settlement Cost Booklet be revised?
A: The revised settlement cost booklet, entitled ?Shopping for Your Loan, HUD?s Settlement Cost Booklet? has been posted on our website at www.hud.gov/respa

First published on BankersOnline.com 12/30/09