HUD Letter Allows Percentage Plus Flat Fee Commission

A real estate broker’s commission may be determined using a percentage of the sales price, a flat fee, or a combination of both, according to a recent letter from HUD’s General Counsel Helen Kanovsky.  The January 22 letter clarifies the distinction between using a formula to calculate a legitimate commission, as opposed to an unearned fee that violates RESPA.  Under RESPA, a real estate broker cannot charge a fee if no, nominal, or duplicative work is done.

Ream more here:

 http://www.ccarlive.com/2010/02/26/hud-letter-allows-percentage-plus-flat-fee-commission/

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Answers to Questions about New GFE

We received many excellent and challenging questions during our webinar “Makings Sense of the New GFE,” hosted in the month of February. As promised, below you will find answers to all of the questions asked. The answers come from our best available resources, and we will all continue to learn more as HUD posts new information.

Question 1 - We understand two circumstances in which the compensation to the originator can change: the loan amount changes and a portion of the origination charges are dependent on the loan amount; the loan program changes.  If a loan is floating and is later locked, we understand that the credit or charge to the borrower may change, but “Our Origination Charges” may not change and the originator’s comp (even if the YSP or rebate changes) will not change.  Correct?

See the answer to this and 15 more questions here:

http://www.mortgagecomplianceadvisors.com/index.php/answers-to-questions-about-new-gfe

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No RESPA Violation for Closing Discount

Posted by Elad Bushari

A federal appellate court has considered whether a developer violated the Real Estate Settlement Procedures Act (“RESPA”) when it offered a buyer a discount on closing costs if the buyer used an affiliate of the developer.

http://bostonrealestateblog.bushari.com/no-respa-violation-for-closing-discount.htm

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New HUD and GFE

Some good stories in here about experiences with the new HUD and GFE.

Surprise Discount Rate Hike From Fed, Loan Agents Comment/Rant On Their Industry | The Basis Point http://ow.ly/19pcr

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Untitled

A piece in the New York Times on February 14 chronicles the impact of the new Good Faith Estimate on mortgage lending. The GFE, which took effect on January l, requires loan originators to provide borrowers with binding estimates for all closing costs including those incurred by third party vendors like title insurers and settlement attorneys.

http://www.theclosingblog.com/2010/02/new-gfe-blessing-or-burden.html

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Your Title Company has a better deal

by Kathy Lockwood

Stewart Title Central Jersey

 

It has recently come to my attention that people are receiving a letter in the mail from a company, not even located in New Jersey, describing the importance of having a copy of a Deed to confirm their property ownership.  The tone and vernacular used in the letter would lead any unsuspecting person to fear the worse should they find that they do not have their original Deed.  The company offered to remedy this by sending a “Certified Copy from the County Clerk’s Office” for a mere $79.95….payable by credit card, of course.

 

As we know, the original document would have, in nearly all cases, been provided to the homeowner shortly after closing.  The value of recording the instrument in the Clerk’s Office is to provide a permanent record of ownership.  Any New Jersey resident that finds that they do not have a copy of their Deed, can access their County’s registrar’s office, either in person or online, and get a copy for free.  Should the need for a Certified Copy arise, it also can be obtained for generally less than $25.00.

 

As New Jersey title agents, we can provide valuable information to homeowners throughout the state at a very modest cost and we welcome the opportunity to be of service.

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ALTA 21 Creditors Rights Endorsement withdrawn

The ALTA Board of Governors voted to withdraw and de-certify the use of the ALT 21endorsement form.  It removes creditors rights issues from certain title insurance policies.  See Tough Times for Lenders

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