The Final RESPA Rule

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• The Final RESPA Rule

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• GFE
• Page 1

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Important Dates
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Summary of your loan
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Escrow account information
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• GFE
• Page 2

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• GFE
• Page 3

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• HUD-1
• Settlement
• Statement

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• HUD-1
• Page 2

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• HUD-1,
• page 3

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• Comparison
• Chart

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Charges That Cannot Increase

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10 Tolerance

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Charges That Can Change

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• Loan
• Terms

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Right-to-cure
Inadvertent or technical errors not a violation
of RESPA Section 4 IF revised HUD-1 is provided
within 30 calendar days after settlement
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• Average
• Charge

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Average Charge

• calculations based on specific
• class of transactions
• during a specific time period
• - not less than 30 days
• - not more than 6 months
• for a specific geographical area

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Average Charge

• charge may not exceed
• average calculation
• charge may not exceed TOTAL
• price paid to 3rd party provider
• originator must retain all
• documentation determining
• accuracy of pricing method for
• at least 3 years

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Average Charge

• may not average on charges based
• on loan amount or property value
• (e.g. transfer taxes, interest charges,
• escrow reserves all insurances
• including title insurance)

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Miscellaneous

• revised the required use definition
• revised the Servicing Disclosure
• Statement
• eliminated 1 cap on FHA origination
• fees (2.5 - new construction)
• updated reserve/escrow account
• language
• allowed for ESIGN applicability

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Department of Housing and Urban
Development Office of RESPA Interstate Land
Sales 451 7th Street SW, Room 9154 Washington DC
20410 [phone] hsg-respa_at_hud.gov www.hud.go
v/respa
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