Changes to RESPA Will Allow Client to Make More Informed Decisions About Loans

Effective January 1, 2010, changes will be made to the Real Estate Settlement Procedures Act (RESPA), which will improve the client experience with regards to choosing a mortgage loan. Essentially, these changes will allow the client to make a better informed decision about which loan to go with. Less confusion, and more peace of mind! According to SunTrust Mortgage:

RESPA reform brings several important changes to the mortgage industry, such as the following:

  • Introduces a new, standardized Good Faith Estimate form to improve a client’s ability to compare multiple offers
  • Revises the HUD-1 Settlement Statement form (HUD-1A for refinances) to facilitate comparison to the GFE
  • Defines what information constitutes an “application” and triggers the time line for delivering an initial GFE
  • Introduces a new term “changed circumstances” to describe when increasing fees is permissible after issuing the initial GFE
  • Establishes tolderances or restrictions for increasing fees between the initial GFE and the final HUD-1, outside of a “changed circumstance”

Looking for more information? Check out the RESPA Frequently Asked Questions on HUD’s website.

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About Lisa Oates

Lisa is the creative mind behind The Harrisonburg Homes Team, providing streamlined content management, quality authorship, and graphic design for Harrisonblog. She's passionate about blogging, enjoying life, and a good cup of coffee.

2 thoughts on “Changes to RESPA Will Allow Client to Make More Informed Decisions About Loans

  1. AvatarSacRealEstate

    I love this blog! I think it is a great resource on Mortgage News. I came to this blog searching for respa changes and I have to thank you for the information- it really answered my question.

    Reply
  2. Avatarlisa Post author

    Glad you have found this information helpful! Please do come back when you are in search of more real estate and mortgage news. We try to stay on top of big ticket items for folks just like you!

    Reply

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