FHA Minimum Investment

Posted by Krista Sabol on Mar 15, 2010 in FHA, FHA/VA, RESPA, RESPA 2010 Every day it seems someone finds a loophole that has to be closed or confirmed and today is no exception. In the new world of RESPA and tolerance requirements a lender may be faced with providing a refund of closing costs to the borrower at the time of closing if the fees were under stated by more than 10%. The consequence may lead to the borrower receiving cash back at closing and/or appearing...
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RESPA & Origination: Complaining won’t help

Posted by Krista Sabol on Mar 15, 2010 in Origination, RESPA 2010 I received an email today from a loan originator complaining about the new GFE as if it had just been rolled out in March! The ranting consisted of the usual complaints with the form – ‘why doesn’t it show the seller credit?!’… ‘this is not clearly showing the funds needed to close’… ‘why do I have to show block 1 so large in order to get block A to reflect the right...
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State and Local Taxes

Posted by Krista Sabol on Mar 15, 2010 in RESPA, RESPA 2010 The transfer tax debacle continues as we all struggle to stay competitive and in compliance with block 8 of the new GFE. With potentially thousands of dollars at risk, many lenders have chosen a very conservative route and require disclosure of all state and local taxes in block 8, regardless of whether state law dictates the seller must pay the fee. There is certainly room in the RESPA...
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Excess Credits and RESPA

Posted by Krista Sabol on Mar 15, 2010 in RESPA 2010 Our client initially thought they had to disclose YSP on loans that they funded with their own money and they put it on the GFE which was issued after 1/1/2010. In order to give themselves extra room on the GFE they cushioned not only their estimated fees that go into block one but they added cushion to third party costs like title, etc. They were doing a no cost loan for the borrower so they...
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