The CFPB released round 3 of its Settlement Disclosure Form, Butternut and Hemlock. The Bureau is asking the public to do something different this time around. Instead of just comparing the two versions of the same disclosure, they are asking the public to comment on how a draft closing stage form works with the draft application stage form.

Many of you have asked my opinion on these two forms, MIMOSA and Sassafrass. Some of you have even asked whether I think we would prefer to have MIMOSA or Sassafrass. Of course, I have my own preference between MIMOSA or Sassafrass. But I wouldn't presume to tell you whether MIMOSA or Sassafrass would be better. I will just remind you that everyone should have their own opinion between MIMOSA and Sassafrass.

Round 2 of the CFPB's proposed SDF forms was released today.  You can access the forms at CFPB's website for the next week or you can always have access to them here at RESPAReady. The CFPB asks you to think about how you would present these forms at closing to a consumer.  We would also ask you think about how you would complete these forms and what additional information you would need to do them comprehensively.

Just when you had made peace with the 2010 HUD-1 form….Beware the 2012 replacement form (shall we call this one the Mayan HUD-1?)
 

In a Change Circular dated August 6, 2010, the VA clarified the intent of its language in the July 30 circular.  In it the VA states that itemizations should occur on an addendum or attachment to the HUD-1 form and not on the HUD-1 form itself.  Some language in the original release caused confusion.

The VA recently announced its updated requirements, synchronizing VA closings with the 2010 RESPA Reform changes.  In its July 30 circular, the Veterans Administration called for itemizations of pertinent fees (801, 1101 and lump sum borrower credits in the 200 section) to appear on an addendum or attachment to the HUD-1 form.  There is no specific format of addendum or attachment required and the administration noted that lenders could expand the Loan Origination Statement - which already item

Hud issued its first RESPA Roundup newsletter to help industry professionals get answers to today's hot RESPA topics.  In this volume, you'll find answers to questions regarding the GFE & HUD-1 forms including topics such as the lender provider lists and how to handle a service that was quoted on the GFE but not charged at the settlement.  You'll also find an overview of the new Interpretive Rule regarding compensation for real estate agents and brokers from Home Warranty Plan companies.  You can always

For those of you following the path of the financial reform bill in Congress...the Senate passed the final version this afternoon 60-39.  It now goes to the President for signature.  This is mammoth legislation that our industry will be implementing for years to come.  Here's a summary of HR 4173's provisions.

Yesterday, the U.S. Senate approved an amendment that would extend the timeframe for eligible closings to Sept 30. The industry anxiously awaits progression of the full bill through the Senate and hopes the House will follow similar measurers. At this week's joint National Settlement Services and Compliance Summit, hopes prevailed that extensions will be granted for transactions that met the "under contract" deadline but for a variety of reasons were having difficulty in meeting the June 30th closing deadline. The complex nature of REO and short sale inventories were identified as the key reasons extensions are sought. See this article for more information about yesterday's action in the Senate.

We've heard some discord over what exactly is the proper method for calculating the total monthly payment in the Loan Terms section on page 3 of the new HUD-1. Some lenders show the total monthly payment in the final box as PIMI + all monthly escrow amounts (including MI) ...resulting in a doubling of MI amounts in the total payment figure. When asked to explain their math, lenders point to the example Loan Terms section in HUD's Settlement Cost Booklet.