Comments on: RESPA Changes

By: LO Compensation Limits Coming in 2011! : National Association of Mortgage Fiduciaries

Tue, 30 Nov 2010 22:51:28 +0000

[...] fee, processing fee, and so forth, and take some or all of those extra fees as income. In Jan of 2010 changes in the federal law RESPA requires all compensation that inures to the benefit of the loan [...]

By: Elisa Wu

Elisa Wu — Mon, 01 Mar 2010 01:02:40 +0000

Definitely, it will help consumer greatly and make sure those greedy LO or brokers to cheat innocent people. It also will increase consumer’s confidence of buying, actually will help the industry and therefore, help us a great deal.

By: Daniel Mulvehill

Daniel Mulvehill — Fri, 26 Feb 2010 21:43:58 +0000

Respa change that has taken effect on 1-1-2010, with my 35 years of lending experience, when I first professionally observed the changes that are reqired , I said if I didn’t have the experience I wouldn’t know what was required over the past 40 years, with that being said, the fees are the same origination,YSP, appraisal title and other sundries fees that could apply. You never undersale a mortgage cost yuou always opt to offer the customer their options, so here is what upsets me the most , the profession needs to minimize the fees allowed to be charged by a LO. What yes most jerks only want the highhest rate of return on 3-5 deals a month, all wholesale lenders should verify what production numbers they close and look at the average fee being charged, if they earn %k ok times3=$15K month, why my doctor friend of over 45 years earns $250,000 a a family physican why should some jerk marke the same with very litle effort, it’s like pigs (jerks) get fat and hogs (clients) get slaughtered theyruin our profession, over disclose RESPA is easy just follow the guidelines and accept change.

By: Ghezal Tareq

Ghezal Tareq — Fri, 29 Jan 2010 08:19:36 +0000

I have no problem with the new GFE and I’ve never had a problem explaining any fees associated with any of the loans I’ve originated in my five years experience of the mortgage industry. I’ve never had a problem letting my clients know what type of product they were getting into and the consequences of such a product. But to say that this will help the banking world or protect our consumers….is simply crazy. This will only create more delays in the funding or closing of residential loan packages. Why should the originator be responsible for a lock expiring and the cost for the extension? What will happen; is the orginator will simply take the loan elsewhere which will create chaos, confusion and more delays.

By: SacRealEstate

SacRealEstate — Tue, 19 Jan 2010 04:05:33 +0000

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.

By: Kimberly Petersn

Kimberly Petersn — Thu, 31 Dec 2009 18:51:00 +0000

I think the new GFE is a benefit to everyone. I hope it can restore the trust that has been lost by some very unethical lenders. I am glad that the customer will be able to see very clearly what is being charged etc, I also agree that this will help when a customer claims they were not informed, it will all be there in black and white.

By: Karen Tuff

Karen Tuff — Thu, 31 Dec 2009 04:59:05 +0000

I do think this is in the best interest of the consumer and industry. It will weed out those not willing or able to do the work necessary to hand in a well researched/ documented file. Underwriters will love the more perfected approach. I do feel it will be harder for me if put in a competitive position of being shopped. I have had to charge higher admin, underwriting etc. fees as part of my previous Broker’s overhead, etc. and I did not have any control over that but only control over my own fee to compete for the business. Also, I am a perfectionist so this is in the same camp.

By: Pauline Martin Ferber

Pauline Martin Ferber — Thu, 31 Dec 2009 00:57:34 +0000

The new GFE has full disclosure of fees and the mortgage professional should have no trouble explaining it to the customer. This was long overdue overhauling of the GFE and very beneficial to the customer.

By: Harold Burton

Harold Burton — Thu, 31 Dec 2009 00:06:10 +0000

The GFE is correct and just in time. It accomplishes one major item. It shows and states full disclosure up front.

GFE’s have in my opinion, is a tool used by indusrty that is very difficult to read by anyone other than a mortgage professional. It feels that new GFE goes a long way in leveling the field for the consumer. All the fees are right in the consumers face. Now full disclosure is in effect.

Our company will abide by the revised HUD-1 and GFE. Training has been on going weekly for over a month. Change is not always good. But in this case I like it. I feel the new GFE will benefit the client immediately.

It tells the client the most important part. Where is my money going. I takes away the intimidation aspect of all the line items associated with the old GFE.

Thank HUD for the 120 day learning curve!!

By: Kelly Fiscus

Kelly Fiscus — Wed, 30 Dec 2009 22:42:30 +0000

I think the new GFE has the ability to help the industry so long as the LO understand it. The new GFE will probably confuse the consumer just as much as the old one, so nothing will change. Unless of course we spend the time educating the consumer so that they can read and understand the GFE.

By: Chris Yanke

Chris Yanke — Wed, 30 Dec 2009 20:19:19 +0000

The new GFE will put the right knowledge in the hands of consumers. What I’m concerned with is the nature of being able to compete. Since this is a universally required part of lending I wonder if the consumer will get the benefit of open disclosure and variety of product? or just several versions of the same scenario with different company names? This is a good start but we need to make sure that the relationship nature of our industry is not taken away since that value cannot be added to the GFE.

By: Chris Yanke

Chris Yanke — Wed, 30 Dec 2009 20:18:23 +0000

I like the concept of the new GFE and I do think it will put the right knowledge in the hands of consumers. What I’m concerned with is the nature of being able to compete. Since this is a universally required part of lending I wonder if the consumer will get the benefit of open disclosure and variety of product? or just several versions of the same scenario with different company names? This is a good start but we need to make sure that the relationship nature of our industry is not taken away since that value cannot be added to the GFE.

By: Kelly Fiscus

Kelly Fiscus — Wed, 30 Dec 2009 19:03:36 +0000

I think it is about time. I think that all fees need to be disclosed up front. Hopefully it will make it easier for the borrower to compare fees and make a more informed choice. I think it will be good for the industry (and cause growing pains for some) as well as the consumer. Yes, I will be GFE compliant.

By: Todd Morgan

Todd Morgan — Wed, 30 Dec 2009 10:20:21 +0000

In some ways it will level the playing field by forcing everyone to play by the same rules when offering a client a quote. I do not like having to lump together all fees the particular way they prescribe because I think admin fees (especially for net branches,) and processing fees (how many of us use processors?) are legitimate and should be allowed to be listed seperately to make it easier to understand why we are charging those fees. If your total costs are higher, you are going to lose to your competition so I don’t think delineating the various parts that make up the total fees should be disallowed.

I definitely do not like the idea of having to cover the difference in cost if total charges are much higher than quoted because there are some legitimate reasons beyond the brokers control as to why costs become higher over the course of a transaction. While they did a good job of addressing much of those potential causes, I’m sure luck or fate will find something they didn’t think of (or that we forgot,) that we will end up eating the difference on. I know that time will help clear up a lot of the in’s and out’s of the new RESPA but it is a lot to take in all right now before they’ve even gone into effect.

The ultimate benefactor is clearly the client so they did a good job of working to protect their best interests by making sure everything is up front, fully disclosed, and that it can’t change on them after they agree to it so I’m for it even though I’m not looking forward having to comply with it without fully understanding all of it. Good luck to us all learning the new ropes, watch out for rope burn!

By: Arash Fiuzi

Arash Fiuzi — Wed, 30 Dec 2009 07:42:11 +0000

This GFE is more like an APR disclosure which is intended to help consumers compare mortgage costs but winds up being more difficult to understand for the simple fact that it does not even tell a consumer what their monthly payment is for P and I, taxes, insurance and MI. It also does not tell a borrower if their payment is interest only or how long it is fixed for.

Ideally, the ARM disclosure, GFE and APR should have been pulled into one comprehensive loan disclosure that both HUD and the Federal Reserve have approved.

The problem with banking regulation is the patchwork of laws and agencies promulgating this stuff. This is an oppourtunity lost for more clear consumer disclosure and for cleaning up this patchwork of diclosures.

By: James Haechler

James Haechler — Wed, 30 Dec 2009 07:27:39 +0000

I agree with everyone. The new GFE changes will only help and is long overdue. This will clear up all fees and make it easier for our customer to understand. The GFE in Reverse Mortgage is pretty simple for our customers to understand. A few changes but for the good.

By: Jason Brock

Jason Brock — Tue, 29 Dec 2009 23:24:00 +0000

RESPA Changes:
I believe it is a day late and a dollar short. It should help the industry save face with the American people but honestly if lenders, bankers, brokers, LO’s had just been upfront in the first place it would not have had to come to this. I have funded many loans in my career, never has a client of mine not been fully informed of all the transactions details. It will help the uneducated consumers. For those who are educated and already read the details it will make it that much easier to see. We will be in compliance with the new GFE.

By: Jerrod Goode

Jerrod Goode — Mon, 28 Dec 2009 06:22:11 +0000

The new GFE will only help, LO’s that are trying to hide fees might not like some of the changes, but I feel most LO’s will not see this as a problem. Charge your clients for your service and make it clear to them.

By: yvette Hobzek

yvette Hobzek — Tue, 22 Dec 2009 06:26:26 +0000

The new GFE should help the industry because it will make the originator explain all of their fees. The only way it will hurt is when there is a variance by more than .125% and or 10%because the disclosure period to borrowers start over and if they are are at a deadline for closing it will delay closing. Some lenders system will not even overide the redisclosure period to allow them to draw docs, so I suppose there will be some angry agents. I also think it will be harder for originators to compete because if their companies require them to charge admin fees, underwriting fees, processing fees, etc and it is lumped in with their fees I think consumers are going to think they are charging way too much no matter what the LO explains to them. It was easier for them to explain when it was broken out. For the consumer, I think it will be better for them because a lot of shops will no longer be able to charge junk fees.
Our company plans really do not have to change a whole lot other than using the new GFE form. We do not have processing fees, admin fees, etc. We keep it plain and simple. We either only charge an origination fee or use the YSP which we explain to the consumer. I feel that the YSP is the consumers and they should use it how they want to use it. I have never considered it as extra income from the lender to line my pockets. It is fully explained to the consumer that if the ysp pays the origination fee then this is what their rate is and if they want to pay the origination fee then this is what their rate is. It will be really easy just to show the ysp as a credit to the borrower.

By: Jan Mundt (Henriksen)

Jan Mundt (Henriksen) — Tue, 15 Dec 2009 00:11:00 +0000

The New GFE will definitly assist the mortgage industry get back on their feet. The new rules hold the originators/lenders accountable during the redisclosing process. With the implanation of the New GFE the Consumer should have a clear understanding of fees and charges. This is an excellent way to educated the consumer and regain our trust. Integra Pacific’s policy is “Consider it Done, the Right Way” We will be compliant.

By: Launce Macomber

Launce Macomber — Sun, 13 Dec 2009 23:23:47 +0000

I’ll join the chorus of those who support the new format. Ken is right.
Everyone has become more sophisticated and if the new GFE will bring light and un derstanding to complex financial transactions, then it’s good both for the industry and the consumer.

By: Ken Ritter

Ken Ritter — Thu, 10 Dec 2009 22:49:31 +0000

I 100% believe that the new GFE will help the industry. I believe that it will keep the brokers and lo’s honest as well as can be passed on to the borrower to educate them and keep them honest as well. I have had many borrows come to me and want some exotic loan or rules bent to get them into a potentially harmful situation to them. Borrowers are very educated now and many seem to have some wild ideas on how to get their loan through. This will keep everyone honest. We are currently getting information out to our lo’s to that they can be prepared.

By: Jillayne Schlicke

Jillayne Schlicke — Thu, 10 Dec 2009 05:06:59 +0000

Hi Mel,

I wish I had a contact for you in Georgia. If Georgia still has state-approved continuing education course providers, your best bet may be to contact your state’s regulator of mortgage brokers and consumer loan companies and ask for a list of their approved continuing ed providers. You may be able to find a local class that way. Your other option is to search through the NMLS’s list of NMLS approved course providers. It is possible that you’ll find someone doing a RESPA class live in Georgia this month or at least next month. Wish I could fly you up here to Seattle!

By: Mel

Mel — Wed, 09 Dec 2009 20:41:00 +0000

Further clarification: I’m not really interested in webinars, unless it’s my only option.

By: Mel

Mel — Wed, 09 Dec 2009 20:40:24 +0000

I am in Georgia and need to attend a RESPA seminar in December of 2009. I can’t find anything open. Any suggestions/ideas?