RESPA - Estimate of Value of Property

Answered by:

Question:

The changes to RESPA by HUD includes a revised definition of application. One of the elements which make up an application is described as "an estimate of the value of the property". How should this be documented on the application form to ensure compliance? The residential loan applications which are provided in our loan processing system (ARTA) do not have this item included on the form.

Answer:

Loan officers will need to ask the applicant, tax assessment and use a best guess to determine the value. They will then need to document this with the other application information.

First published on BankersOnline.com 1/11/10