Decipher the FAQs of the New RESPA Rule

A Frequently Asked Questions report released by the Department of Housing and Urban Development regarding implementation of the new RESPA rule has raised more questions from an industry in need of interpretation and guidance.

"Lenders and title companies were looking to HUD to address the more difficult practical circumstances they will face in completing the new GFE and HUD-1," said Phil Schulman, an attorney with Washington, D.C.-based K&L Gates in an interview with the Title Report. "For the most part, they merely restate the instructions already contained in the regulations."

Decipher the FAQs with mortgage banking and consumer finance expert Holly Spencer Bunting, an associate with K&L Gates, who will present an in-depth overview of the components of HUD's final RESPA rule and the new HUD-1 and GFE disclosure forms.

Her presentation is followed by a complimentary lunch and will take place Wednesday, September 16 in the Dogwood Room at the Kenwood Golf & Country Club in Bethesda.

Only 15 spots remain! If you have not reserved your spot or believe a colleague could benefit from this free event, please respond as soon as possible. We are limited to the first 100 guests, and time is running out.

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The last day to RSVP is Tuesday, September 8. Don't miss this wonderful opportunity to gain a full understanding of the new RESPA rule and enjoy a free lunch compliments of Federal Title.

10 Things You Should Know about Title Insurance: Referral Fees Increase Premiums

Referral fees increase the cost of title insurance. The General Accounting Office recently reported that 5 percent of title insurance premiums went toward insurance claims. A far greater percentage (some reports claim 50 percent or more), went to real estate agents and mortgage lenders for referral fees. This practice is illegal and punishable by imprisonment and/or a fine, yet it's very difficult to regulate.

Home buyers' best protection against exorbitant title costs is education, simply knowing they have the right to choose their title company, asking about discounts and learning about what options are available . Not all title companies shell out referral fees, or kickbacks. In fact, some title companies cut out the middle man and credit the home buyer instead when he/she orders settlement services online directly from them.