My wife asked me last night, “What would you do if I won the Lotto?” I said, “I’d take half, then leave you.” “That is excellent,“ she replied. “I won $12 bucks, here’s $6, now get the heck out.”
Life throws surprises at us all the time, and unfortunately for every single person in this industry, or so it seems, the looming RESPA changes have the potential of bogging down the business. And it is not even a surprise – we’ve known about it for months! Loan agents are confused about the forms, small mortgage brokers are wondering how they’re going to adhere to the changes (even if they can figure out what those changes are), mortgage banks are wondering about their responsibilities, and investors are concerned about both their clients following the guidelines and wondering if loans that fall outside of them will cause a new series of lawsuits. And will their systems be able to handle the new process?! Even when investors notify their clients about RESPA changes, they are quick to note that their announcements are not to be relied upon as comprehensive.
Brokers are, understandably, concerned. (Is that an understatement?) For starters, the form is on HUD’s site. And remember that HUD is on your side: “HUD announced that for the first four months of 2010, the staff of the Mortgagee Review Board (MRB) will exercise restraint in enforcing new regulatory requirements under theReal Estate Settlement Procedures Act (RESPA), due to take full effect on January 1. The MRB instructed its staff to exercise such restraint in considering an action against FHA-approved lenders who have demonstrated that they are making a good faith effort to comply with RESPA’s new requirements.”