HUD's
long-anticipated new RESPA rule includes a new GFE and HUD-1,
required for all originations and closings as of January 1,
2010. The new documents work as a set -- the new HUD-1 is to
be used only if the loan is originated with the the GFE.
There
will be no clean break with the old forms. Mortgage lenders
will adopt the new GFE at their own pace, and for closings originated
with the new GFE, the settlement agent will need to close with
the new HUD-1. This
process will take some time, as lenders will not be able to
switch until their loan origination software is updated -- a
big project for the LOS software companies.
In
addition, lenders who adopt the new GFE must follow all the
pricing tolerance rules of the new RESPA regulations. This and
other additional burdens have created a disincentive to switch
to the new forms.
We
are hard at work on revising our programs and settlement statement
forms, and expect to have an update ready this spring. Our software
will allow you to switch over to the new settlement statements
just for the closings that you need them for.
Rather
than rushing out an update, we are taking care to make sure
our changes incorporate the kind of high integration and automation
that you expect from Standard Solutions. HUD estimates that
it should take 15 minutes extra per closing to complete the
new HUD-1 (including the new page three). We consider it vitally
important that as much of the extra work as possible is automated
and streamlined to minimize the burden on you.
We
are also participating in legal and industry events to ensure
we have the background information necessary to assist you with
training and technical support on using the new forms.
