Title Hub RESPA


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  • HUD is educating consumers on how changes in the interest rate can effect monthly mortgage payments and settlement costs.
  • Application Inaccuracies=credit worthiness, amount of loan, estimated value of the property…Unforeseen Title Curative Requirements (boundary disputes, need for flood insurance, environmental problems…)
  • Title Hub RESPA

    1. 1. The Next Generation of Real Estate Closings<br />
    2. 2. RESPA REFORM<br />A Realtor's Guide to Understanding the Revised GFE & HUD-1<br />
    3. 3. RESPA: IN THE NEWS<br />
    4. 4. RESPA CHANGE<br /><ul><li>Key Features: </li></ul>New Good Faith Estimate (GFE);<br />New HUD-1 Settlement Statement .<br /><ul><li>Mandatory: January 1, 2010</li></ul>Don’t Panic: The 120 Day Reprieve .<br /><ul><li>Board overseeing enforcement of new rules to “exercise restraint” in enforcement until May 1, 2009. </li></li></ul><li>HUD SUPPORT <br />_<br />www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm<br />
    5. 5. NEW GFE<br />
    6. 6. The GFE: Pg 1<br /><ul><li>Clear summary of loan terms, escrow account info and closing costs. </li></li></ul><li>GFE: Block 1<br /><ul><li>Origination charges lumped together on GFE as bundled fee </li></ul>In Block 1 of the GFE under “Our Origination Charge”. <br />Includes administration fees, processing, underwriting fees, doc prep fees, etc.<br />Includes Mortgage Brokers YSP. <br />May not be itemized separately. <br />
    7. 7. Clarifying Final Loan Costs<br /><ul><li>“Origination Charges” = Lender’s Charges
    8. 8. “Other Settlement Services” = 3rd Party Charges</li></ul>Total Estimated Settlement Charges [A+B] can be found on bottom of both PAGE 1 & PAGE 2 of the new GFE.<br />
    9. 9. GFE: Page 2 - A<br /><ul><li>Adjusted Origination Charges
    10. 10. The origination charge (Line 1) consists of all Lender Administration Fees.
    11. 11. Credit or Charge for Borrowers interest rate (Line 2)</li></li></ul><li>GFE – PAGE 2: B<br />Block 3: Required services selected by the Lender- Listed by Service and Charge<br /><ul><li> Disclosure needed for affiliated businesses</li></ul>Block 4: Lender provides fee estimate for title services & its title insurance.<br /><ul><li> Fees may not increase by < 10% in the aggregate unless the Borrower chooses their own.</li></ul>$730.00<br />Block 5: Owner’s premium calculated by taking the amount of the policy plus the issue fee before deducting the amount for the “stand-alone” lender’s policy.<br />Block 6: These are disclosed in 1300’s on HUD-1<br /><ul><li> Example: survey, if required by Lender</li></li></ul><li>GFE – PAGE 2B<br />Block 7: State and local fees to record loan & title documents.<br />Block 8: Amount charged for state & local fees on deeds /deeds of trust (Zero tolerance). <br />Block 9: Covers hazard & PMI insurance, <br />property/sewer/water taxes, etc.<br />Variable according to settlement date. <br />Block 10: The dollar amount per day multiplied by number of days; this will change depending on final settlement date.<br />Block 11: Agent chosen by Borrower;<br />amount depends on coverage & company.<br />Subtotal B: Add to fees charged by the lender to obtain the total estimated settlement charges. <br />
    12. 12. Increase in Charges Table<br />GFE Pg. 3<br /><ul><li> Some charges cannot increase
    13. 13. Some can, but only within 10%
    14. 14. Some are free to change</li></ul>0% Tolerance<br />10% Tolerance<br />No Set Tolerance<br />
    15. 15. THE TRADEOFF TABLE<br />Buyer sees:<br /><ul><li> Details of current loan
    16. 16. A loan with lower closing costs
    17. 17. A loan w/ higher closing costs (but a lower rate)</li></ul>GFE Pg. 3<br />
    18. 18. Shopping Chart<br />Easy comparison shopping for Buyer, between loans and lenders. <br />The Borrower fills out the Shopping Chart to compare different <br />loans and/or lenders. <br />GFE - PAGE 3<br />
    19. 19. The GFE & Lenders<br /><ul><li>GFE must be provided within 3 days.</li></ul>Of application receipt or information sufficient to complete an application. So what does that mean?<br /><ul><li>Lender cannot verify borrower information prior to issuing GFE.
    20. 20. Lender cannot charge Borrower for preparation of the GFE; Lender can only charge for Credit Report.
    21. 21. Quotes good 10 business days unless “changed circumstance”. </li></ul>HUD FAQ’s:<br />What they say:<br />“Submission of borrower’s financial information in anticipation of a credit decision relating to a federally related mortgage loan…” <br />What they mean:<br /><ul><li>Borrowers name/monthly income/social security # (to obtain credit report)
    22. 22. Property address/estimated property value/loan amount </li></li></ul><li> REVISING THE GFE<br />ONLY IF:<br /><ul><li>Changed Circumstance:</li></ul>Acts of God, War, Disaster or other Emergency<br />Application Inaccuracies<br />Material Developments (i.e., buyer bankruptcy)<br />Unforeseen Title Curative Requirements<br />NOT WHEN:<br /><ul><li>Fail to include normally charged origination service fee
    23. 23. Misquote a 3rd party charge
    24. 24. Improperly consider information relied upon for GFE</li></li></ul><li>GFE REVISION TIMELINE<br /><ul><li>Revised GFE provided by loan originator within 3 business days of receiving the information which changed the circumstances.
    25. 25. Upon receipt of GFE, borrower has 3 days to review new estimates.</li></ul>Additional 3 days for mail (6 days total).<br /><ul><li>Expect turnaround of 7 days before closing on deal after a Changed Circumstance.
    26. 26. The mortgage broker & the lender both must retain documentation of reasons for revised GFE for no less than 3 years after settlement. </li></li></ul><li>HUD-1<br />NO CHANGE<br />NEW<br />SOME CHANGES<br />
    27. 27. HUD-1 PAGE 2 & REALTOR COMMISSIONS<br /><ul><li>Page 2 has a number of changes </li></ul>Including: Reporting of Realtor Commissions and “The Split”<br /><ul><li>The 700 series no longer requires the real estate commission to be shown as a percentage. </li></ul>The actual amount paid to each real estate company is now shown. <br /><ul><li>Settlement agents will request copies of listing agreements to see commissions. </li></li></ul><li>HUD-1: Page 3<br /><ul><li>Lenders must provide Settlement Agents with information to complete HUD-1. </li></ul>Settlement Agent cannot do it without them and the information that they have.<br /><ul><li>Page 3 is of particular interest to Buyers, your clients. </li></ul>Clearly lists loan details;<br />Discloses whether Lender exceeded the tolerances. <br />Page 3 of the HUD-1<br />
    28. 28. HUD-1 & GFE Comparison<br /><ul><li> The GFE is compared to the final figures on the HUD-1. </li></ul>The settlement agent, using the GFE information provided by the Lender, completes this form. <br />This page carries over GFE disclosures except last item is added to detail the actual amounts of the escrow account. <br />Buyer refund: <br /><ul><li>Difference between the amount variation exceeds tolerances the 10% tolerance threshold. </li></ul>$730.00<br />$800.00<br />$2,438.00<br />$2,578.00<br /> 5 . 4%<br />$140.00<br />
    29. 29. Owner’s Title Insurance<br />HUD:<br />“If a title claim occurs, it can be financially devastating to an owner who is uninsured”. <br />“If you want to protect yourself from claims by others against your new home, you will need an owner’s policy”.<br />* Shopping for Your Home Loan HUD's Settlement Cost Booklet. Pg. 20<br />
    30. 30. THE TITLEHUB EDGE<br />
    31. 31. TitleHub v. Other Closing Attorneys<br />We Offer:<br /><ul><li>Reliable, Informed, and Ultra Responsive Closing Attorneys
    32. 32. Innovative E-Closing System </li></ul> Log On & Log In using a Secure Web Portal<br /> Check Loan status with real time updates. <br /> Anywhere, Anytime: Instantaneous File Access<br /> Review & Download Deal Documents <br /><ul><li>Legal & Marketing: Helping you do your job better</li></ul> The Massachusetts Real Estate Law Blog -- #1 Law Blog in MA<br /> Innovative TitleHub Website with Realtor Resources and News<br /> Expert Internet Marketing and Social Media Advice<br />
    33. 33. <ul><li>We partnered with E-Closing in order to bring the settlement process into the 21st Century</li></ul>E-Closing seamlessly unites us with Lenders, Mortgage Brokers, Realtors, Buyers and Sellers through the Internet<br /><ul><li>You can access our file’s status from anywhere – </li></ul>check closing dates <br />verify documents <br />edit personal data<br />
    34. 34. Take Control Of Your Deals<br /><ul><li>Answer client questions anywhere, anytime</li></ul>If you can connect to the internet, you can check the status of your deal<br />See received documents, review them yourself, or help your client with their review.<br />No more playing phone tag to check the status of every moving part of a deal!<br />
    35. 35. TITLEHUB: ANYWHERE ACCESS<br /><ul><li>Login through TitleHub.com and see your files on The Whiteboard. </li></ul>If you can surf the web, you can navigate through E-Closing's pages.<br />It's a web site, with hyperlinks, rollover menus, and plain English. <br />
    36. 36. Bonus: “Value Points”<br /><ul><li>Efficiency:</li></ul>Why wait? Instant Uploads = Instant Access<br /><ul><li>Communication:</li></ul>No More: Phone Tag. Email Chains. Confusion. <br /><ul><li>Go Green:</li></ul>Drastically reducing our dependency on paper by transforming a wasteful process. <br />
    37. 37. CONNECT TO REAL ESTATE CLOSING SUCCESS<br />LEGAL & MARKETING:We can help you learn to grow and change your business. <br />
    38. 38. Customers Are Online...Where Are You?<br /><ul><li> Generation Y will soon outnumber Baby Boomers…
    39. 39. and 96% of them are on a social network.
    40. 40. There are over 200,000,000 blogs…
    41. 41. and 54% of them update or tweet DAILY!</li></li></ul><li>Creating A Killer Realtor Blog<br />Blog Platform<br /><ul><li>Wordpress.  Great starting blog platform.  Inexpensive. Need some technical knowledge to set up.
    42. 42. Active Rain. Established platform for Realtors. Good SEO.</li></ul>Get a unique URL like www.newtonmahomes.com, instead of using Wordpress URL.<br />Make your blog a stand alone entity. Better for SEO.  Do link your blog to your website.  <br />Header Art: If Do It Yourself, invest in some nice looking header art, or hire a blog designer.  Better looking, better designed blogs attract more readers and traffic.<br />Have an About Me and Contact pages. Key for business generation.<br />Do guest blog posts for your favorite lender, home inspector, attorney, mover, etc.<br />
    43. 43. Creating a Killer Realtor Blog<br />Must-Have “Widgets” and “Plug-ins”<br /> Optimize your blog!<br />RSS (Really Simple Syndication) Feed. A must! Google Feedburner is a good choice.<br />Share Button. <br />Email Subscription. Google Feedburner offers free service. Can track subscribers, and capture their email addresses.<br />Twitter and Facebook integration.<br />Stats: Set up Wordpress Statistics or Google Analytics <br />
    44. 44. Smart Blogging: By Vetstein<br /><ul><li>KISS (Keep It Simple Stupid).</li></ul>“Plain English”. Short & sweet posts: 300-500 words.<br />Hyperlink to relevant sources and articles. <br /><ul><li>Use images but be mindful of copyright issues.
    45. 45. Organize posts with headers and bullet points.
    46. 46. Use Keywords. </li></ul>Creative Titles w/crucial keyword(s): “Top 10 _____ lists”.<br />Use top keywords at least 3-4 more times in body of post.<br />Use tags liberally - important tool for SEO.<br /><ul><li>Comments! </li></ul>Commenting on other blogs drives traffic back to you.<br />Allow, but moderate, comments.<br />
    47. 47.
    48. 48. Email Marketing & Social Media<br /><ul><li> Even Email is beginning to fade in popularity!
    49. 49. Not a battle- but use both to succeed!</li></ul>Use tools to help manage contacts. <br /><ul><li>Constant Contact
    50. 50. Mail Chimp
    51. 51. Nutshell Mail </li></li></ul><li>Managing the Online Conversation<br />We understand what will help you get involved efficiently & intelligently.<br />
    52. 52. Working with<br />Our goal is to provide value to those who choose to work us with us. <br />We can:<br /><ul><li>Decrease the demand on your time
    53. 53. Increase your bottom line
    54. 54. Provide value to your customers
    55. 55. Help you stand out in a crowded market.</li></li></ul><li>Contact Us:<br />