RESPA Reform: Not just a new form, but a new process
The purpose of changes to RESPA regulations is "to simplify and improve the process of obtaining mortgages and reduce consumer settlement costs."
The new rule requires more timely and effective disclosures related to settlement costs for mortgage loans to consumers. The changes made by this final rule are designed to protect consumers by standardizing the Good Faith Estimate (GFE).
The implementation period for all parties to be utilizing the new GFE and HUD-1 forms is described in the regulation as not later than January 1, 2010.
If a lender elects to use a new GFE form before January 1, 2010 then the settlement must be completed using a new HUD-1 form.
All transactions after January 1, 2010 require the new GFE and HUD-1.
