mschuster's blog

On a 2010 HUD-1, you will need to disclose the amount of title insurance premium retained by the agent and the amount remitted to the underwriter on lines 1107 and 1108. And while during the RESPA comment period we all argued against that logic, (especially since it doesn't hold true for line 903, line 902 or any other insurance premiums shown on the HUD-1 form)...the requirement held and it is part of the final RESPA reg. So, I have to touch on what could possibly be a third rail topic, but we need to talk about it. What amounts will be disclosed?

This morning probably finds your scratching your head and asking “What’s Next?” for the future of RESPA Reform.  H.R. 1728’s passage in the U.S. House yesterday has many wondering if they still need to get and stay RESPA Ready.  The Congressional Quarterly says the future of H.R. 1728 is “murky”.  Remember this gem from School House Rock of a Bill’s long journey of trying to become a Law? 

By a vote of 300-144, the US House of Representatives passed the Mortgage Reform and Anti-Predatory Lending Act, including an amendment that would delay implementation of the new RESPA rule.  Is the new RESPA regulation DOA?  Don't count it out just yet.  The senate still must introduce and pass similar legislation.  We've got our ear to the ground and will keep you up to date and informed.  Here's a look at the results of the vote.

Are you a loan originator or do you do business with one?  Recently, I blogged about the importance of understanding your customer’s concerns and providing them with solutions.  Are you still unsure if RESPA reform is causing heartburn for lenders?  Take a look at

Trying to keep up on what's happening in Washington on the RESPA front?  We've got you covered at RESPAready.com!  You can track the progress of HR 1728 right here on our site.  Just click on the RESPA Regulation tab, and there you'll find comprehensive information as the bill moves through the U.S. House.  We're heard that it just might go to a floor vote on Friday.  Of course, we will keep you up to date on all the RESPA news.

How can you tell if your company is in danger of losing its capacity to change? Be on the lookout for some early warning signs:

1. Resting on your laurels. You see companies ignoring declining market-share, or in high employee turnover or customer satisfaction numbers. Do you view bad numbers as a blip on the radar screen or do you look for trends and seek to understand them?
 

 10 Great Panics I Have Known (and Survived) in the Title & Escrow World

1. Title Insurance:  The integrity of the transaction is dead.  Abstracting is the only way to go.

2. Computers – DOS based: No computer is as accurate as me and my typewriter.

3. Computers – Windows based: Learning this mouse just might kill me.

4. Y2K:  What happens if all these computers die???

 
A key component of the new HUD-1 form is the comparison or “walk-back” to the figures from the GFE.  Let’s dig down a bit and further examine what this new walk back means for settlement providers.  If you have a borrower sitting at the closing table, and their fees exceed allowed tolerances, what is the proper way to show a cure?  If your answer is “revise the settlement statement” … think about that for a minute.  Revise it to what? 

There’s another proposal circulating around Washington that would require lenders to transmit closing figures to settlement agents 4 days prior to closing.  The idea is for consumers to receive final figures 2 or 3 days before closing.  I was heralding this news to someone in the business yesterday who nearly snorted at the idea that this would provide any real benefit.   “There’s a 24 hour rule in place now, Mary” she said “we all know that never happens”. 
 

The Nov 2008 RESPA update encourages lenders to place downward pricing pressure on settlement fees.  At the same time it places greater responsibilities on the lender's shoulders, including a responsibility for 3rd party charges.  Some say this might actually result in increased title and settlement fees because each purchase transaction might now have 2 title/settlement agents.