On November 13, 2008 the Department of Housing and Urban Development (HUD) published final regulations that completely overhaul the requirements of Regulation X. The effective date for certain new provisions was January 16, 2009. Most of the new provisions are effective January 1, 2010.
The changes are huge. HUD estimates the one-time costs of implementing the changes is $571 million for new and revised software, legal costs and training expense. The recurring compliance costs are estimated at $918 million per year, which is expected to average $73.40 per loan. HUD estimates that with the changes proposed, settlement costs will be lowered by $8.35 billion annually, with an average savings of $668 per loan. With $668 less revenue and an additional $73 of expenses per transaction these changes will have a dramatic impact on mortgage lending.
Whether new to the area of RESPA compliance or an old pro, this program provides the information needed to implement the new RESPA rules.
Agenda
This full-day program includes information regarding:
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Coverage and exemptions;
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Special information booklet;
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The revised good faith estimate requirements including the new three-page Good Faith
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Estimate form and the new instructions for preparing the form;
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Determining when “changed circumstances” exist;
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When and how to apply the “cure” provisions;
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The revised HUD-1 and HUD-1A and the new instructions for preparing the forms;
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The calculation of closing costs using the average cost method;
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Prohibition against unearned fees and kickbacks;
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The new 0% and 10% tolerances that restrict the amount by which certain items that appear on the HUD-1/1A can exceed the items on the GFE;
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The new prohibition on charging a fee for an appraisal, inspection, or similar charge prior to providing the GFE;
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Affiliated business arrangement rules and disclosures;
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Escrow rules and disclosures; and
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The new Servicing Disclosure Statement.
Audience
This program is designed for loan officers, loan processors, auditors, compliance officers and others who must comply with the new RESPA Rules.
Speaker
Jack Holzknecht is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced consultant who has provided training to thousands of bankers and examiners for twenty-eight years. He has the ability to identify the key compliance issues from each regulation.
Jack’s career began in 1976 as a federal bank examiner. He later headed the form and software and education divisions of a regional consulting company. In that capacity he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by the Georgia, Iowa, Kentucky, Pennsylvania, Nebraska, New York and Texas bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association.
