Posted by Anthony Demangone
Even though HUD's RESPA rules are now effective, you'll continue to find new questions to research. With that in mind, don't forget HUD's RESPA FAQ document. They have updated it again, back on December 30, 2009. New "questions and answers" are bolded.
There are two areas of focus, as I read the new document. First, HUD provides new guidance on on pp. 12-13 about providing a written list of providers. Second, HUD updated the last FAQ on p. 52 to note that it has published its revised settlement cost booklet.
And here's our little RESPA Compliance Research overview. When looking for answers to a RESPA riddle, here's how I would attack it.
- Look at the actual final rule.
- If the answer isn't clear, look to the preamble to the final rule. This is the part of the final rule where HUD discusses new parts of the guidance to explain what it was thinking and what it expects.
- If it the answer still isn't clear, look at the FAQ document.
- If the answer still isn't clear, and the issue involves the GFE or HUD-1, look at Appendix A or C.
- If you still are not sure, flip a coin. Just kidding. But if you've done all this work and you still do not have an answer, you could ask for a legal opinion from an attorney (expensive), contact HUD directly (you may not get the answer you want) or make the best business decision you can and then document your research. If an exam or lawsuit questions your decision, you'll have to defend yourself.
***
NAFCU members, the January 2010 newsletter is available.
Comments