Mortgage lenders unsure about how to handle upcoming changes under the new Real Estate Settlement Procedures Act rule can participate in a series of online events hosted by the U.S. Department of Housing and Urban Development.
The new RESPA rule takes effect on Jan. 1, 2010. Lenders and mortgage brokers will be required to provide prospective borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs. In addition, closing agents will be required to provide borrowers a new HUD-1 Settlement Statement that clearly compares final closing costs with initial estimates.
In an announcement today, HUD said it plans a series of live interactive online presentations on the new rule. The housing agency hopes to educate mortgage professionals about the requirements.
The first Webinar was held yesterday.
Four more are planned for Dec. 7 at 11 a.m. Eastern, Dec. 10 at 2 p.m., Dec. 11 at 11 a.m. and Dec. 16 at 1 p.m.
The events are being led by HUD Deputy Assistant Secretary for Single Family Housing Vicki Bott. Attendees can pose questions to HUD during the events.
Restrained enforcement of the new rule is planned for the first 120 days, HUD said. But the agency still expects all loan originators to begin using the new GFE and revised HUD-1 after Jan. 1, 2010.
” I want to accelerate our focus with a heavy dose of plain English and customer service to help the industry prepare,” Federal Housing Administration Commissioner David Stevens said in the statement. “We’ve been working overtime to answer questions and provide training to as many organizations as we can.”