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The Department of Housing and Urban Development (HUD) has made many changes that are effective on January 1, 2010. This is an attempt to help protect consumers, mainly the buyer from being taken advantage of. The new regulations that are going into effect January 1, 2010 regulate what fees Lenders disclose to prevent price hikes at the close of escrow. Below are a few of those changes.

1. Lenders must issue a GFE no later than 3 business days after the loan originator receives an application or information sufficient to complete a loan application. Failure to provide the GFE is a violation of Section 5 of RESPA. 

2. Should your APR change more that .125%, the lender is required to re-disclose your fees.

3. The Good Faith Estimate is going to be a 3 pages form rather than the current 1 page form.

4. CLICK HERE to see what the New Good Faith Estimate will look like.

Please let me know what you think of the upcoming changes.

The Homebuyer Tax Credit  Bill was passed this afternoon by the House (403-12) and it’s on its way to Obama! We would love to hear your comments on this! Please click on the link to see the upcoming changes.

11-5 government_affairs_tax_credit.pdf