I know you have been hearing about the changes to HUD and some of you may already know what these changes entail. But if not, here is a nice overview of some of the items that are scheduled to go into effect.

- The New HUD effective date is January 1, 2010.
- One of the primary purposes of the new HUD is to improve upfront disclosures on the Good Faith Estimate (GFE) and limit the amount estimated charges can change. It is anticipated that these changes will help consumers save nearly $700 in closing costs.
- The Good Faith Estimate has been reduced from four to three pages. These pages include an instructional page to help borrowers better understand their loan offer.
- To help borrowers compare their Good Faith Estimate with their HUD-1 Settlement Statement, each designated line on the final HUD-1 will now include a reference to the relevant line from the GFE.
- The new HUD will also require lender payments to mortgage brokers (Yield Spread Premiums) to be disclosed in a more meaningful way.
- Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator’s receipt of all necessary information.
- HUD will allow lenders and settlement service providers to correct potential violations of RESPA’s new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay consumers any overcharges.
- Sections of the HUD that have significantly changed: 800, 1100, 1200.