By Sarah Trzepacz, Content Strategist, REALTOR.org
Expert Phil Schulman drew an over-capacity crowd to his session on HUD’s recently issued final RESPA rule. During the session he described changes in the six main components of the rule, identified winners and losers in the latest round of amendments, and walked the crowd through the new GFE and HUD-1 forms.
Schulman spent much of his time discussing the new regulations with regards to GFEs (Good Faith Estimates), which he called the “centerpiece” of RESPA reform efforts. HUD’s goal in these reforms is to provide greater clarity and transparency in the settlement process. About the new GFE form, Schulman quipped: “Only HUD could simplify the process by taking a one-page GFE and turning it into three pages. Your government at work.”
In addition to GFE and HUD-1 procedures, Schulman reviewed changes to the rule involving volume discounts, average charges, and the definition of required use. All in all, Schulman felt that HUD has done “a decent job” of providing more transparency and clarity in the settlement process, and that REALTORS® landed in the winners’ column in the latest round of RESPA reform efforts.
If you missed the session or just couldn’t get your hands on copies of the handouts, you can find a printable version of his slides, as well as links to the new GFE and HUD-1 forms on NAR’s RESPA page.