LAST UPDATE: September 18, 20093
When does the new RESPA Rule take effect?
The November 2008 RESPA Rule was effective January 16, 2009. Implementation of the provisions are as follows:
Provision Implementation Date
Average Charge (optional) January 16, 2009Servicing Disclosure Statement January 16, 2009Other technical changes January 16, 2009New GFE January 1, 2010New HUD-1/HUD-1A(for all transactions in which thenew GFE is used)January 1, 2010Tolerances January 1, 2010Elimination of FHA Cap OnOrigination FeesJanuary 1, 20102)
When does the revised required use definition take effect?
The revised required use definition was withdrawn by a separate final rule publishedMay 15, 2009.3)
Can a loan originator e-mail a GFE to a borrower?
Yes; as long as the borrower consents and the other specific requirements forconsumer disclosures under the Electronic Signatures in Global and National Commerce Act(ESIGN) are met, a loan originator may e-mail, fax, or send by other electronic means the GFE(and other RESPA disclosures, such as the HUD-1/1A). See section 101(c) of ESIGN, 15 U.S.C.§ 7001(c); also see 24 CFR § 3500.23. The loan originator may also continue to deliver the GFEto the borrower by hand delivery or by placing it in the mail, as provided by RESPA.4)
RESPA and HUD‘s RESPA regulations require that certain records be retained for a
period of time. Can those records be retained electronically?
Yes, if the person responsible for retaining records under RESPA and HUD's RESPAregulations meets the specific requirements and limitations applicable to the retention of electronic documents set out in the Electronic Signatures in Global and National Commerce Act(ESIGN), that person's responsibility will be satisfied by the retention of electronic records. Seesections 101(d) and (e) of ESIGN, 15 U.S.C. § 7001(d) and (e); also see 24 CFR § 3500.23.5)
Can we translate the GFE and the HUD-1 into languages other than English?
Yes, it is permissible to translate the GFE and the HUD-1 as long as the form has beentranslated accurately.6)
The term ―monthly‖ is used throughout the GFE and HUD
-1 forms. The requirements
stated in terms of ―monthly‖ do not work well for loans on which payments are not made monthly