New RESPA laws

New RESPA laws

We wanted you to be aware of the vast changes that have once again challenged our industry beginning January 1, 2010. The new Regulation X (as it is being called) dramatically affects the way disclosures are handled on the loan side of a purchase or refinance. This has hit the whole industry nationally, whether the loan is done through a bank, broker or mortgage banker.

The new GFE (Good Faith Estimate) 2010 may have ramifications on the time a transaction can be completed and any changes that may affect the deal along the way. Any "change" to rate, fees, extensions, sales price, credits, etc... or anything that may affect the APR of the loan could impact the ability to close on time. Due to these changes, it has never been more important to fight for a reputable escrow, title and lending institution that you know and trust to handle your transactions. This is not a market for rookies!

There are many lenders pushing for changes to the purchase contract to now extend the loan contingency dates and to encourage longer escrow periods to allow for these changes. Many rush situations will now be completely out of the control of the lender to accommodate, as any change to the transaction will set into effect a new process for re-disclosure, so please establish realistic time frames when negotiating your purchase contract.

We will be sharing a lot of information on a go forward to keep you informed, but wanted to make sure you were aware of some of the implications of the changes that went into effect. This is said to be the biggest change to the mortgage lending industry in over 20 years and will have a vast impact on the ability to modify and change purchase transactions and any change that will impact the APR on the loan.

We have hit the ground running with significant training and education to keep us at the front of the pack. We will keep you informed as to how the change is impacting the lending world and to keep you up to date on what you can expect for the future.

We appreciate your support and will guarantee that we will do everything in our power to educate you and your clients and to insure a smooth lending process for your clients. We are committed to your success and know that 2010 will be solid year for Real Estate.