New HUD1 Form Has Many Changes, Most For The Better...

A pair of changes to the real estate transaction process will be noticeable to both consumers and industry pros alike – new “Truth In Lending” (TIL) procedures by mortgage lenders and a new “HUD-1″ Settlement sheet following new RESPA guidelines (that stands for Real Estate Settlement Procedures Act). Both are designed to bring fuller disclosure of loan and settlement costs to consumers.

In this post I’ll deal with the new HUD-1 form, and in a future post the Truth In Lending process. The new HUD closing sheet relies heavily on the Good Faith Estimate, which is given by the lender to the consumer at the time the consumer applies for a loan. Under the new TIL regulations lenders must furnish the (now) borrower with another Good Faith Estimate should the terms change (including the rate, purchase price, etc). Your real estate agent needs to be on top of this…

Read the rest of the article at my Lancaster PA Real Estate blog on the new HUD1 form for 2010