Thanks, that is what I thought based on the FAQ's, but the staff is arguing that the application date drives the use.
2) Q: When will the use of the new GFE and HUD-1 forms be required?
A: The new GFE and HUD-1 forms must be used as of January 1, 2010. The new GFE and HUD-1 forms may be used before this date. Please note that if a loan originator issues a GFE on the new form, then the settlement agent must use the new HUD-1 form and the tolerances and other requirements in the revised RESPA regulations will apply.
I am using the argument that since the FAQ does not say other wise they mean you have to use it starting Jan1, 2010.
I sent an e-mail to my lenders that stated the following:
The use of the new GFE and HUD-1/HUD-1A forms
is not based on the application received dates. The new GFE must be used for all GFEs issued on or after 1/1/2010. The following language is from page 5 of 51 of the 11/19/09 HUD RESPA FAQs.
"2) Q: When will the use of the new GFE and HUD-1 forms be required?
A: The new GFE and HUD-1 forms must be used as of January 1, 2010. The new GFE and HUD-1 forms may be used before this date. Please note that if a loan originator issues a GFE on the new form, then the settlement agent must use the new HUD-1 form and the tolerances and other requirements in the revised RESPA regulations will apply.
3) Q: If a GFE is issued on the old form prior to January 1, 2010, and the loan will close after January 1, 2010, which HUD-1 form is to be completed by the settlement agent?
A: If a GFE is issued on the old form prior to January 1, 2010, then the old HUD-1 form must be used even if closing will occur after January 1, 2010. For GFEs issued on the old form, the loan originator has the option to reissue the GFE (with the same terms and charges) on the new form, in which case the settlement agent must complete the new HUD-1 form."
The following is from Regulation X.
"§ 3500.1 Designation and applicability.
(a) Designation. This part may be referred to as Regulation X.
(b) Applicability. The following sections, as revised by the final rule published on November 17, 2008, are applicable as follows:
(1) Sections 3500.8(b), 3500.17, 3500.21, 3500.22 and 3500.23, and Appendices E and MS-1 are applicable commencing January 16, 2009.
(2) Section 203.27, the definitions other than "Required use" in §3500.2, §3500.7, §§3500.8(a) and (c), §3500.9, and Appendices A and C, are applicable
commencing January 1, 2010."
Section 3500.7 is the section that addresses the Good Faith Estimate. Sections 3500.8(a) and (c) address the HUD-1/HUD-1A settlement statements and the cure procedures for tolerance violations. Section 3500.9 addresses permissible changes to the HUD-1 or HUD-1A forms. Appendix A contains the instructions for completion of the new HUD-1 and HUD-1A forms. Appendix C contains the instructions for the new GFE.
The following wording comes from the supplementary information section of the final rule published in the 11/17/08 issue of the Federal Register.
"Therefore,
use of the new GFE and the new HUD-1/1A will be required as of January 1, 2010. During the transition period, the current RESPA requirements with respect to the GFE and the HUD-1/1A remain in effect and settlement service providers may choose to proceed under either the current GFE and HUD-1/1A requirements or may choose to proceed under the new GFE and HUD-1/1A requirements. However, any settlement service provider who delivers the new GFE prior to January 1,2010, will be subject to all of the requirements related to the new GFE, including compliance with the tolerance provisions and use of the required HUD-1/1A."