1/1/2010 new rules allow less room for changes to loan net charges when escrow closes , also FHA loan changes
The Good Faith Estimate (GFE) and HUD-1 disclosures are intended to give borrowers sufficient information to permit shopping for the best possible loan terms and closing costs. The Good Faith Estimate has been in for years, but it left too much wiggle room, now revised there are well defined tolerance limits.
The base of all this is what is your net loan cost when you close the loan, not when you begin escrow!!
Web site for facts: http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf
Also the FHA has revised rules on charges:
11. Elimination of FHA origination fee limitation
Effective Jan. 1, 2010, FHA-approved mortgagees may collect any fee to compensate them for expenses incurred in originating and closing a loan--not merely the 1 percent of the loan amount they were previously limited to. Of course, their fee is still subject to the overall RESPA rule against receiving unreasonable or unearned compensation
information from the Cal Asoc of Realtors legal dept.
The base of all this is what is your net loan cost when you close the loan, not when you begin escrow!!
Web site for facts: http://www.hud.gov/offices/hsg/ramh/res/resparulefaqs.pdf
Also the FHA has revised rules on charges:
11. Elimination of FHA origination fee limitation
Effective Jan. 1, 2010, FHA-approved mortgagees may collect any fee to compensate them for expenses incurred in originating and closing a loan--not merely the 1 percent of the loan amount they were previously limited to. Of course, their fee is still subject to the overall RESPA rule against receiving unreasonable or unearned compensation
information from the Cal Asoc of Realtors legal dept.
Labels: Jan 1 2010 loan fee estimates now enforced and FHA changes rules
posted by Westside Investor's Eye at
10:42 AM
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