Respa Changes:
Is Your Title Company Ready?
RESPA Rules Vary by State
Is your Title Company ready for the sweeping RESPA HUD Reform? If you do business in multiple states, keep in mind that various states have strict guidelines as to what are allowable title fees. If your title company is not aware of any of these state-specific regulations, your numbers may end up being incorrect when it comes time for settlement. Additionally, VA and FHA loans have specific requirements regarding what fees are allowable. Consequently, if your title company is not aware of all of these guidelines, your numbers may end up being incorrect when it comes time for settlement. In sum, it is now more important than ever to do business with a title company that continuously stays informed of changes in rules, regulations and guidelines.
RESPA Reform Title Help
 Is your Title Company providing assistance to you with adjusting to the newly released RESPA HUD guidelines? With so many major changes taking place regarding RESPA guidelines, you not only need a title company that is aware of these issues, but also one that will act as your partner in keeping you informed of regulatory changes. The right title company in today’s market will make sure to help you navigate through the regulatory maze so you can be sure your fees, policies and loans are in compliance. As an example, Patriot Title, LLC offers its clients unlimited training and support on the New Respa Reforms. We are happy to take the time to explain to our clients the effects of the new laws, provide preliminary HUD’s to make it easier for our clients to calculate their fees accurately, answer any specific questions they have on the new guidelines, provide training for their staffs on the RESPA Reforms, and provide any other assistance and support they request. Is your title company willing to do the same things for you? If not, call Patriot Title at 877-TITLE-30 and get the answers to your questions so you can be Respa Ready!
RESPA Reform Impact
RESPA HUD Reform that went into effect on January 1, 2010 changes many aspects of the loan process, and is aimed at providing increased transparency and consumer awareness in the mortgage process and the costs associated with that process. The main outcomes of this drastic reform are a significantly revised Good Faith Estimate (GFE) that must be used on all loan applications taken after January 1, 2010 and a HUD-1 Settlement Statement that has received a major overhaul. These documents will break down certain fees that were not as detailed in the past, thereby making it easier for the consumer to shop around for different loan terms and closing costs. The last page of the new GFE contains a worksheet for the borrower to utilize to compare costs between different lenders.
Title Closing Fee Guideline Changes
There are new guidelines on how much certain fees can increase between that disclosed on the GFE and the numbers at closing. The reform classifies certain fees in the loan process as fees that can change, cannot change, or can change but only up to 10% from the original estimate. Accordingly, lenders and brokers will need to know the amounts each settlement service provider in the process will be charging with pinpoint accuracy because if the lender or broker underestimates some of these third party fees, the lender or broker will be required to refund the borrower the difference.
Increasing Importance of Accurate Title Company Fees
The transparency of the precise amounts the borrower will be charged for his or her closing costs, along with the limits on what fees can be changed and, if so by how much, provide a great incentive for lenders and brokers to choose settlement service providers that are accurate in their fee calculations while also keeping their fees very competitive.
Patriot Title Can Help
Contact Patriot Title today; we’ll gladly answer any questions you may have about Respa HUD Reform. We will also be happy to speak with you about the many benefits to you of utilizing Patriot Title for your nationwide title needs. |
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