New Info from HUD Regarding RESPA and New LO Compensation Rules


The HUD RESPA Office has issued compliance guidance for RESPA as it applies to the Federal Reserve Board’s new MLO Compensation rule.  The new guidance attempts to clarify RESPA requirements related to proper disclosure on the GFE and HUD-1 settlement statement.  However, the guidance does not address the major issues related to restrictions on mortgage loan originator compensation that remain within the jurisdiction of Federal Reserve Board.  The new guidance is fairly lengthy and includes various compensation scenarios and completed form examples.  Course providers teaching RESPA and how to complete the new GFE and HUD-1 should become familiar with this document.  A copy of the guidance may be accessed at:   http://www.hud.gov/offices/hsg/rmra/res/mlocomplrodup31811v2.pdf

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