Technical corrections and clarifying amendments to Regulation X were included in 76 FR 40612. Please see related article “Summary of RESPA Technical Corrections” in this month’s DocuTech Newsletter for an outline of the details.
Effective August 10, 2011, lenders will not be allowed to include charges in the GFE column of the comparison chart on page 3 of the HUD-1 Settlement Statement if the fees were not actually charged at closing. DocuTech had already made this change per HUD’s clarification in the July 2010 RESPA Roundup. A ConformX system default setting “Include Non-Charged GFE Fees on HUD” was subsequently created because Wells Fargo’s policy was to not follow the related postings by HUD since nothing official was included in the actual rule. Now HUD has changed the actual regulation to reflect this requirement.
The ConformX setting “Include Non-Charged GFE Fees on HUD” will be set to “No” for all users the evening of August 9, 2011. This means for all loans imported on or after August 10, 2011, if a fee was not charged at closing, it will not be included in the comparison chart on page 3 of the HUD-1 or included in the tolerance calculations.
The revisions to the rule also clarify that when a GFE is re-disclosed due to changed circumstances, borrower requested changes, or moving from float to lock, effective August 10, 2011 the revised GFE must be mailed 3 business days following discovery of the event that warrants the revised GFE. Beginning this evening, two related fields will be prompted for in initial disclosure document packages for all users of eDisclose functionality in ConformX.
The field “Is GFE Redisclosure?” should be set to “Yes” if the Good Faith Estimate that will be printed in the initial disclosure package is a revised GFE. In addition, the date of the changed circumstance, borrower change, or movement from float to lock should be entered in the field “Changed Circumstance Date”.
The initial disclosure package will be triggered to print from the fulfillment center and be mailed (or the email notification will be sent, if applicable) three business days from the “Changed Circumstance Date” instead of three days from the “Application Date” when “Is GFE Redisclosure?” is “Yes” if the eDisclosure package has not yet been accepted by the borrower.
August 9, 2011