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Consumer Financial Protection Bureau Know Before You Owe Project

May 20, 2011: The Consumer Financial Protection Bureau (CFPB) released initial prototypes of its combined mortgage disclosure form required under the Truth in Lending Act (TILA) and Real Estate Settlement and Procedures Act (RESPA).

  • Anne Anastasi, president of the American Land Title Association, issued a statement regarding the initial prototypes
  • ALTA urges members to send comments to the CFPB regarding the mortgage disclosure form. Deadline to offer input on first round of prototypes is May 27, 2011.
  • Prototypes for a new HUD-1 Settlement Statement are expected in the months ahead

Help Your Customers Help You!

July 13, 2010: The ALTA RESPA Implementation Task Force has updated its Uniform Supplemental HUD-1/1-A Instructions in an editable PDF file format that will further facilitate the transfer of information from lenders to settlement agents in order to create an accurate, compliant HUD-1/1A.

December 10, 2009: The ALTA RESPA Implementation Task Force has published Uniform Supplemental HUD-1/1-A Instructions that will help your lender customers provide you with the information you need to prepare the new HUD-1.

Train Your Staff: "Closing Real Estate Transactions in 2010"

October 16, 2009: ALTA and ALTA's Land Title Institute are pleased to bring you a training program that captures the knowledge and wisdom of ALTA's RESPA Implementation Task Force and includes advice from HUD. The 70-minute program is designed to provide an overview of RESPA and the Final RESPA Rule, along with best practices for implementation of the rule's requirements.

Price: Members $99, Non-members $149. Download the PDF Order Form. or order online in the ALTA Store.

Key Documents and Links

Additional Resources for Readiness

RESPAready.com, hosted by RamQuest
FreeHUD-1.com, hosted by TSS




News and Information About RESPA Reform:

ALTA Letter to HUD Seeking Guidance GFE/HUD-1
November 10, 2009

ALTA Suggestion to Correct Issues Surrounding Line 1101

RESPA Rule Announced

On November 12, 2008, HUD released its new RESPA rule. ALTA staff is reviewing the rule and its implications for the title industry. Note that the new GFE and HUD-1 will not be required to be used until January 1, 2010. ALTA asks members who are interested to read the GFE and HUD-1 and email their advice, comments, suggestions and ideas to ALTA at grassroots@alta.org. Check back often with this web site for the latest on RESPA and how it affects the title industry.

RESPA Related Headlines

HUD Presents an Overview of the RESPA Rule at the 2009 ALTA Federal Conference (Membership required to view presentation)

RESPA Final Rule Posted

ALTA Responds to RESPA Announcement

Full Summary of RESPA Final Rule [PDF]

HUD Issues New Mortgage Rules to Help Consumers Shop for Lower Cost Home Loans
New 'Good Faith Estimate' will help borrowers save nearly $700

Special Event

ALTA Hosts Webinar on New RESPA Rule
December 3, 2008
On Wednesday, ALTA hosted a webinar on the new RESPA rule, featuring senior HUD staff. Ivy Jackson, Director, RESPA and Interstate Land Sales, Barton Shapiro, Deputy Director, and Laura Gipe, Compliance Specialist joined Kurt Pfotenhauer and Ed Miller in an explanation of the new rule and its effects on the title industry. They answered questions submitted by conference participants. The audio and web presentation is available at ALTA's website on the RESPA resource page.




Fact Sheet on HUD's Final RESPA Rule

  • For the first time ever, HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that will clearly answer the key questions they have when applying for a mortgage including:

    • What's the term of the loan?
    • Is the interest rate fixed or can it change?
    • Is there a pre-payment penalty should the borrower choose to refinance at a later date?
    • Is there a balloon payment?
    • What are total closing costs?

  • HUD estimates that by improving upfront disclosures on the GFE, and limiting the amount estimated charges can change, consumers will save nearly $700 in total closing costs.

  • Based on substantial public comment, HUD withdrew a proposed requirement that closing agents read and provide a 'closing script.' Instead, to borrowers in favor of a new page on the HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the GFE.

  • HUD's new Good Faith Estimate has been reduced from four to three pages, including an instructional page to help borrowers better understand their loan offer. In addition, the GFE will consolidate closing costs into major categories to prevent junk fees and display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.

  • To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE. Borrowers will now be able to easily compare their estimated and actual costs in the same manner many commenters suggested.

  • HUD will require lender payments to mortgage brokers (often called Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates that consumers agree to. To ensure that HUD's new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.

  • Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator's receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.

  • HUD will allow lenders and settlement service providers to correct potential violations of RESPA's new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.

  • The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010.

K&L Gates Webinar: Finally a Final RESPA Rule
Finally a Final RESPA Rule
For those who were unable to join the discussion, below is a link to the event recording and supporting materials.

Event URL: http://www.visualwebcaster.com/event.asp?id=53714
Event Passcode: RESPA

Supporting documents:
Finally a Final RESPA Rule Presentation Slides
K&L Gates RESPA client alert

Speakers:
Phillip L. Schulman, Partner, Washington, DC
Holly Spencer Bunting, Associate, Washington, DC

RESPA Reform Resource Center

On March 14, 2008 HUD released its new RESPA proposal. The proposed rule would create a standard GFE, apply cost tolerances, and require settlement agents to draft, read and provide a "closing script" to consumers. ALTA® is seeking your reaction to the rule and comments as we develop our response to the rule.

Letters by ALTA® and Other Interested Parties

August 7, Congressional Letter to HUD
Submitted August 7, 2008   [10 Mb PDF]
Click here to see a list of the Representatives who signed the letter.

Click here to see a list of the Representatives who did not the letter.

HUD Responds to Dear Colleague Letter

ALTA® Comments on RESPA by Kurt Pfotenhauer
Submitted May 13, 2008   [PDF]
Congressman Donald Manzullo (R-IL) Comment letter
Submitted June 10, 2008   [PDF]
HUD Opposition Letter by Jeffrey Condie
Submitted May 5, 2008   [PDF]
SBA Office of Advocacy Comments on Proposed RESPA Rule
Submitted June 11, 2008   [PDF]
Letter to Acting Secretary Bernardi by P.A. Cooke
Submitted May 7, 2008   [PDF]
Federal Trade Commission Comment Letter
Submitted June 11, 2008   [PDF]
California Land Title Association Letter to HUD
Submitted June 4, 2008   [PDF]
NAIC Comments on Proposed RESPA Rule
Submitted June 10, 2008   [PDF]
Joint Trade Associations Letters to HUD
Submitted July 31, 2008   [PDF]
Federal Reserve Board staff Comment Letter
Submitted June 13, 2008   [PDF]
Joint Trade Associations Letters to OMB
Submitted July 31, 2008   [PDF]



One Page RESPA Talking points.

ALTA® Testifies Before the House Small Business Committee

You can watch YouTube video of last Thursday's testimony before the House Small Business Committee, you can view everyone, including ALTA® President Gary Kermott's testimony, by clicking here


RESPA Resources
News on RESPA Reform
December 16, 2008 Fannie Mae Introduces Streamlined Modification Program (SMP)
December 3, 2008 ALTA Hosts Webinar on New RESPA Rule
December 2, 2008 Industry Reaction to RESPA: Online Shoppers Left Out [PDF]
November 26, 2008 Don't Miss Your Chance to Hear HUD Experts Explain the New RESPA Rule
November 24, 2008 ALTA to Hold RESPA Teleconference With HUD Officials -- Free for Members
November 19, 2008 K&L Gates Webinar: Finally a Final RESPA Rule
November 13, 2008 New Final RESPA Rule Significant Victory For Title Industry [PDF]
November 12, 2008 RESPA Final Rule Posted [PDF]
November 12, 2008 HUD Issues New Mortgage Rules to Help Consumers Shop for Lower Cost Home Loans
November 12, 2008 Government Unveils Mortgage Disclosure Rules
Washington Post | November 12, 2008
November 12, 2008 Statement From ALTA CEO Kurt Pfotenhauer on RESPA [PDF]
September 23, 2008 Representatives Send Letter to OMB to Reject RESPA Proposal
September 18, 2008 HUD Secretary Steve Preston Comments on RESPA
September 16, 2008 House Conducts Hearing on HUD’s Proposed RESPA Rule
August 19, 2008 HUD Responds to Dear Colleague Letter [PDF]
August 18, 2008 HUD Issues New RESPA Guidance
August 11, 2008 243 Reps Urge Withdrawal of RESPA Rule
July 22, 2008 ALTA® Action Alert on RESPA Reform
July 1, 2008 Federal Reserve Board Staff Submitted Comments to HUD [PDF]
June 18, 2008 NAIC Comments on Proposed RESPA Rule [PDF]
June 17, 2008 FTC Staff Files Comments with HUD on Proposed Amendments to RESPA Regulations
June 12, 2008 RESPA Comment Period Closes Today
June 6, 2008 Statement by Kurt Pfotenhauer, CEO on HUD's Proposal to Amend the Real Estate Settlement Procedures Act [PDF]
June 5, 2008 Only One Week Left to Comment on RESPA Rule
June 5, 2008 Housing Economist Criticizes HUD RESPA Economic Analysis
May 29, 2008 Only Two Weeks Left to File Comments on Proposed RESPA Rule
May 28, 2008 FHA Revises Forms: Loan Underwriting and Transmittal Summary, and Addendum to Uniform Residential Loan Application
May 22, 2008 ALTA® Testifies Before the House Small Business Committee
May 15, 2008 ALTA® Comments on RESPA by Kurt Pfotenhauer
May 8, 2008 HUD Extends Comment Period On Proposed Mortgage Reforms
May 1, 2008 ALTA® Action Alert - Submit Your Comments to HUD on Proposed RESPA Reform by May 13
April 22, 2008 ALTA® Members Participate in Teleconference With HUD on RESPA Reform
April 15, 2008 List of Concerns with Proposed RESPA Rule [PDF]
April 2, 2008 Make Your Views on RESPA Rule Known


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American Land Title Association
1828 L Street, NW, Suite 705
Washington, DC 20036-5104
P. 202.296.3671 F. 202.223.5843
www.alta.org
service@alta.org
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