GFE and transfer tax questions continue for HUD

April 8th, 2010

Written by Frost Mortgage

The Department of Housing and Urban Development is getting an earful from the mortgage industry about the new Good Faith Estimate (GFE) form, which took effect earlier this year with the Real Estate Settlement Procedures Act (RESPA).

As we’ve written before, RESPA creates paperwork for lenders and confusion for buyers. You can now add to the confusion questions about the real estate transfer tax, according to a recent article by National Mortgage News (subscription required).

At a regional mortgage banking trade show in Atlantic City, HUD’s RESPA director, Ivy Jackson, was “bombarded” by questions about the GFE. Jackson’s answers included:

• RESPA allows the use of a “worksheet,” but it can’t look like the new GFE.
• The lender is responsible for the GFE in a wholesale transaction, not the mortgage broker.
• The industry will have to learn to navigate the new HUD-1 forms.

You can contact us today whether you’re a homebuyer concerned about what the GFE form means for you or you’re a producer looking for a net branch opportunity with a company that’s continuously working to make transactions easier for consumers. We’re following the changes closely, and we bring decades of experience in the industry.

Please take a moment to learn more about how Frost Mortgage can help you. If you're looking for a mortgage, please visit our Find a Loan Officer page. And if you're looking for the best Branch Partner opportunity in the business, please visit our Branch Opportunities page. Thank you!

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This entry was posted on Thursday, April 8th, 2010 at 9:00 am and is filed under First-Time Homebuyer, Homebuying, Mortgage Banker News, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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