Could someone please provide the following correct information..????

I deal with 5-6 different lenders and I have seen page 4 of the HUD prepared 3 different ways…

#1 The YSP is showing as a credit “Paid to the Borrower”

#2 The YSP is showing as a credit “Paid to the lender”

#3 The YSP is showing as a credit “Paid to our Bank” (our loans are table funded)

I’ve experience considerable delays with some of my closing wires due to confusion that is created when companies do not complete page 4 of the HUD in a consistent manner. I was told that page 4 of the HUD is more for disbursement purposes and does not have to meet the same standards as pages 1, 2 & 3 on the HUD… I know it sounds nuts (you would have thought with all the RESPA changes there would only be “1” acceptable way to show the funds disbursements on page 4)….. Please let me know if any one else has or is encountering this same issue.. Thanks.

by Loan-er September 19, 2010 9:52 PM

i agree, the GFE/HUD-1 may have been constructed with good intentions, but is a mess. Every lender has a different interpretation, and a competent title agency is most important. the change of circumstance is another gem(gov’t at work).
by MikeM-NJ September 20, 2010 6:06 AM

Yes, the HUD-1 new HUD-1 form is a difficult beast to master. However, it only has 3 official pages, not 4. Page 2 is used to show loan originator charges and credits to the borrower for YSP in lines 801 and 802. Any additional pages detailing fees and costs are not required by RESPA.

It sounds like someone in your company (or at the companies you deal with) has created” a “page 4” for internal disbursement purposes. Perhaps it is simply the closer’s disbursement record. In any event, since it is not governed by the RESPA rules closers and others will fill it out in a way that makes sense to them, which will likely vary considerably.
by oldbe September 20, 2010 10:24 AM

Old be is right, you are going to see variances in the disbursement page. It is purely a rehash of page 2 fees showing where they are going, it does help on the title end when trying to balance a wire…
by Donktard Borker September 20, 2010 10:31 AM

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Elizabeth Warren and U.S. Treasury Secretary Timothy Geithner The top U.S. framers of the new Consumer Financial Protection Bureau today affirmed a priority of simplifying the mortgage disclosure form as part of a broader effort to give families “better tools to make better choices.”

U.S. Treasury Timothy Geithner and Harvard profession Elizabeth Warren, newly-named Assistant to President Obama, hosted a forum to seek input on simpler mortgage disclosure, a task made mandatory by the financial oversight reform laws enacted in July.

Under the Wall Street Reform and Consumer Protection Act, the newly created consumer agency is charged with combining and simplifying two overlapping mortgage disclosure forms that emerged as a result of the Truth in Lending Act (TILA) of 1968 and the Real Estate Settlement Procedures Act (RESPA) of 1974.

Both forms are required to be presented to mortgage applicants. And they have converged somewhat over the years, but remain separate and too complicated for consumers to make one of the biggest financial decisions of their lives – taking out a mortgage, Warren said.

Warren will report to both President Obama and Geitner as she creates the framework of the Consumer Financial Protection Bureau.

“Fine print obscures the cost of credit and makes it impossible for families to compare products,” Warren said in a statement. “Too often, families come to understand the legalese only when they get bitten by it. Streamlined disclosure can level the playing field and give families better tools to make better choices. “

She said simpler disclosure is particularly necessary in the mortgage market “where borrowers receive stacks of incomprehensible paperwork when they’re looking for a loan.”

The forum held today included consumer advocacy groups, housing counselors, financial experts, mortgage companies and other mortgage industry stakeholders.

A Treasury statement said feedback and ideas received at this and future meetings will contribute to expediting the “design and testing of new draft mortgage disclosure forms for consumers.”

Throughout this process, the consumer bureau team will work closely with the Federal Reserve on their pending proposals for TILA disclosures and the new disclosure requirements under the financial reform legislation.

“Simplifying these forms is a prime example of where we can and will accelerate our efforts to deliver real benefits to consumers as soon as possible,” Geithner said.

via ecreditdaily.com

So just when we get the GFE firgured out, we may get yet another form?

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Continuing Ed for Title Agents

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First American Title Insurance Company Announces the Formalization of a Unique National REO Title and Settlement Services Network

September 20, 2010 admin

—National Services Group Provides Single Point of Contact and Local Closings for Purchasers of Multiple-property Portfolios—

PR Newswire

DALLAS, Sept. 20

DALLAS, Sept. 20 /PRNewswire-FirstCall/ — First American Title Insurance Company announced today, at The Five Star Default Servicing Conference and Exposition in Dallas, the formalization of First American’s National Title Insurance and Settlement Solution (FANTISS) network.

The FANTISS network provides a central point of contact to assist lenders in closing large volumes of real estate owned (REO) transactions through First American Title Insurance Company’s network of local offices nationwide. FANTISS team members provide lenders with a single point of contact throughout the settlement process, allowing for a greater level of simplicity and efficiency when closing multiple-property portfolios.