Mortgage Lenders Closing Cost Disclosures Change with RESPA News
Comparing mortgage rates and lender fees should now be more standardized with the news that HUD has changed the rules regulating lender disclosures of closing costs.
Mortgage lenders must now disclose to borrowers a single origination fee on the Good Faith Estimate and the HUD-1 Settlement Statement, which includes all lender fees and compensation.
Lenders are not allowed to increase their origination fee from the estimate. Some other closing costs, including title insurance and recording fees, can increase by as much as 10%. Estimates for other charges, such as homeowner’s insurance and other services provided by third parties selected by the borrower, are not subject to these limits.
A new version of the HUD-1 closing form includes a comparison of the estimated and final closing costs, and a summary of mortgage information and terms.
Mortgage Quotes and Information
Mortgage lenders must now disclose to borrowers a single origination fee on the Good Faith Estimate and the HUD-1 Settlement Statement, which includes all lender fees and compensation.
Lenders are not allowed to increase their origination fee from the estimate. Some other closing costs, including title insurance and recording fees, can increase by as much as 10%. Estimates for other charges, such as homeowner’s insurance and other services provided by third parties selected by the borrower, are not subject to these limits.
A new version of the HUD-1 closing form includes a comparison of the estimated and final closing costs, and a summary of mortgage information and terms.
Mortgage Quotes and Information
posted by CRHOME.com at
6:37 AM
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