2010 RESPA UPDATE
January 4, 2010
NEW REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) RULES
Effective: January 1, 2010
Last year the US Department of Housing and Urban Development (HUD) issued final rules and regulations updating compliance requirements under the Real Estate Settlement Procedures Act (“RESPA”). The new requirements are effective with residential mortgage loan applications taken on or after January 1, 2010.
As a reminder, each loan you submit to Manhattan Financial Group, Inc. (“MFG”) comes with your representation and warranty as to compliance with RESPA and any other Federal, State or Local Law, Rule or Regulation governing the origination of consumer residential mortgages. Every Wholesale Originator is responsible for their compliance with all applicable laws and ordinances.
MFG is building some RESPA checkpoints throughout our internal procedures in order to guide you efficiently through the loan process. For all loans submitted to MFG with an application date of January 1, 2010 or later, you are reminded that the loan package must include the new GFE along with the most recent Reg Z (TIL). All applications dated on or after January 1, 2010 are further required to be closed with the new HUD-1 Settlement Statement. That HUD-1 must accurately reflect the Initial Good Faith Estimate.
Changes to the initial Good Faith Estimate will only be accepted by MFG with supporting documentation. As a reminder, unless there has been a material change to the transaction (purchase price, requested loan amount, etc.) there can be no changes to the fees initially disclosed and charged at the Close of Escrow.
MFG recognizes that RESPA in some cases may be unclear or open to interpretation. As a reminder, MFG reserves the right to exercise its sole discretion and judgment in any compliance determination. Although the Management and Staff at MFG realize that each loan is vital, adherence to these additional regulations is even more so.
As your lender and business partner, MFG is happy to assist both our Wholesale Originators and Processors as needed with compliance related issues. Please feel free to contact us with any questions or concerns you may have under RESPA, MDIA, or any other Federal or State regulation.