Thanks Sox and Dan.

Any Laser Pro users here? Just got my first look at the new forms (GFE and HUD) and wouldn't you know it, they did just the opposite of MORVission,. LP has made all the docs 8.5x11. I am trying to find in the FAQ, haven't scanned the reg yet, but can the HUD be smaller thatn the modile form?

Why can't these people just follow the samples given by HUD

What exactly are transfer taxes? Is this something you will know at the time of the GFE? I'm assuming so since it's zero tolerance...i had a processor ask me about them and i'm really not sure what to tell them they are.

Around here in New England, some states charge tax stamps, or transfer taxes on purchases. One or both parties pay some or all of a particular charge which is usually based on the sales price.

We use Laser Pro. The GFE and HUD statements I've played with all print on legal size paper.

Found my answer on the HUD size, 3500.9(5) says:

(5) The following variations in layout
and format are within the discretion of
persons reproducing the HUD–1 and do
not require prior HUD approval: size of
pages; tint or color of pages; size and
style of type or print; vertical spacing
between lines or provision for additional

I keep reading and hearing contradictory information about title insurance.

Is the bank allowed to require that title insurance is purchased from a particular provider?

Just found Section 9 of RESPA that says no seller may require directly or indirectly as a condition to selling the property that title insurance be purchased by the buyer from any particular title company.

So it would seem that the bank could require a particular title company.

If the seller designates a title company in the Buy/Sell, can the bank require the use of that title company. My understanding is that if the buyer and seller use different title companies for Owner's and Lender's title insurance, costs go way up. I would hate for something like that to put us out of tolerance.

You can select the provider for them. Please note Appendix C of the regulation:

There is a 10 percent tolerance applied to the sum of the prices of each service listed in Block 3, Block 4, Block 5, Block 6, and Block 7, where the loan originator requires the use of a particular provider or the borrower uses a provider selected or identified by the loan originator. Any services in Block 4, Block 5, or Block 6 for which the borrower selects a provider other than one identified by the loan originator are not subject to any tolerance and, at settlement, would not be included in the sum of the charges on which the 10 percent tolerance is based. Where a loan originator permits a borrower to shop for third party settlement services, the loan originator must provide the borrower with a written list of settlement services providers at the time of the GFE, on a separate sheet of paper.

I have a question on the "Summary of your loan" section of the Good Faith Estimate.

How do I complete the boxes "Can your interest rate rise" & "Even if you make payments on time, can your monthly amount owed for principal, interest and any mortgage insurance rise" for a premium rate ARM?

I know most of the connections to Regulation Z have been severed with the new GFE but the only way I know to complete those two boxes for an ARM is to use the Regulation Z fully indexed rate based payment streams. That works fine for a discounted ARM where the payment amount & rate would rise for at least one payment stream.

It will not work for a premium ARM since the payment is already at its max from the first payment if you rely on the Early TIL.

I can't imagine they want us to some how show the payment going down in one box but a rising rate in the other.

This shouldn't be rocket science - but how does a bank participate in the HUD Outreach Campaign. I was not able to find any instructions in the press release on how to participate. Can anyone help?

I'd like to reach out to HUD........and get them around the neck.

How does this work for ORE properties where the bank is the seller? If the bank only has one title company available in their area, what do they do?

See this thread . You must get an invite from HUD. Truffle Royale provided an e-mail address for the person at HUD that is handling the registration process.

"How does this work for ORE properties where the bank is the seller? If the bank only has one title company available in their area, what do they do?"

You have to let them choose and hope they choose the local company.

In reference to the bank selecting the title insurance provider so a list is not required----- The question I am trying to answer is, are there any problems if the selected title insurance provider has an affiliated business arrangement? Any thoughts?

If they are an affiliated business, the only ones you can require the use of is an attorney, credit reporting agency, or real estate appraiser. That limitation has not changed (3500.15(b)(2). All others can just be a referral and it is up the borrower.

Thanks for the reply. Sorry, but I should have asked this in the original post, what if the bank is paying the fee (a no cost loan)? From what I read, I don't think it makes any difference, but, I would appreciate a confirmation.

They are still a settlement service provider for the loan, regardless of who is paying for them.

Thank you for your help!

That's the respond we received from our compliance consultant- you can't demand it from them. Same case where someone comes to apply for a loan and brings in their information-we can accept it.

We have them complete a loan application so which would have their income on it- if that information from the application was not right per say income after receiving their W-2 or tax returns then I would believe we would have a changed circumstance.

Sorry to keep beating a dead horse:

So I quote OTI (which I have no idea how we will be able to give an accurate quote) and Transfer Deed Fee, knowing my borrower will not pay these per custom, not law, hence why I have to list them.

Per the FAQ's, I will need to show these as seller's credit on the front of my HUD to offset the fact the seller is paying for these items, as they always do.

Won't these new 'seller's credits' really begin to muck up true seller's credits vs. seller concessions as we prepare this loan for the secondary market, since now $1000-2500 extra will be added to that credit figure, which is generally limited by the secondary market to no more than 3%, or you have to reduce the loan/sales price?

Regarding transfer taxes, my state is one state that is required by law that transfer taxes are paid by the seller. Since it is state law, do we put 0 or NA in block 8?

If required by law, then yes, you may.

we can put NA?

"if that information from the application was not right per say income after receiving their W-2 or tax returns then I would believe we would have a changed circumstance."

Validation of applicant income would not result in a change of circumstances for RESPA purposes.