The Final RESPA Rule

GFE

Page 1

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Important Dates

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Summary of your loan

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Escrow account information

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GFE

Page 2

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GFE

Page 3

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HUD-1

Settlement

Statement

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HUD-1

Page 2

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HUD-1,

page 3

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Comparison

Chart

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Charges That Cannot Increase

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10% Tolerance

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Charges That Can Change

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Loan

Terms

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Right-to-cure

Inadvertent or technical errors

not a violation of RESPA Section 4

IF revised HUD-1 is provided within

30 calendar days after settlement

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Average

Charge

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Average Charge

• calculations based on specific class of transactions

• during a specific time period

- not less than 30 days

- not more than 6 months

• for a specific geographical area

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Average Charge

• charge may not exceed average calculation

• charge may not exceed TOTAL price paid to 3rd party provider

• originator must retain all documentation determining accuracy of pricing method for at least 3 years

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Average Charge

• may not average on charges based on loan amount or property value

(e.g. transfer taxes, interest charges, escrow reserves & all insurances including title insurance)

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Miscellaneous

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• revised the required use definition

• revised the Servicing Disclosure Statement

• eliminated 1% cap on FHA origination fees (2.5% - new construction)

• updated reserve/escrow account language

• allowed for ESIGN applicability

Department of Housing and

Urban Development

Office of RESPA & Interstate Land Sales

451 7th Street SW, Room 9154

Washington DC 20410

(202) 708-0502

hsg-respa@hud.gov

www.hud.gov/respa

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