The Real Estate Settlement Procedures Act (RESPA) and Regulation X are at the top of the list of most frequently cited violations. Forms completion and the legality and proper disclosure of fees are the main areas of confusion.
On March14, 2008 the Department of Housing and Urban Development (HUD) published proposed regulations that completely overhaul the requirements of Regulation X. Comments on the proposal are being accepted until May 13, 2008.
The proposed changes are huge and are on a fast track as indicated by the 60-day comment period. HUD estimates the one-time costs of implementing the changes is $570 million for new and revised software, legal costs and training expense. The recurring compliance costs are estimated at $1.231 billion per year, which is expected to average $98.48 per loan. HUD estimates that with the changes proposed, settlement costs will be lowered by $6.5 to $8.4 billion annually, with an average savings of $518 to $670 per transaction. With $600 less revenue and an additional $100 of expenses per transaction, these changes will have a dramatic impact on mortgage lending.
Whether new to the area of RESPA compliance or an old pro, this program provides a much needed review and update of all the requirements of RESPA. From basic disclosures, to special rules for account servicing and escrows, to prohibited fees, this program covers all the requirements. Avoiding common violations is the major theme of the program.
This program contains core knowledge needed by all lenders. The one-day program provides:
- Comprehensive coverage of RESPA and Regulation X;
- A thorough review of changes to the Act and Regulation; and
- A discussion of significant court cases and a review of the most frequently cited violations.
Other reasons to attend include:
- Compliance suggestions help avoid lawsuits and violations.
- The 100-page manual is a great desktop reference.
- The presenter is an excellent speaker with 32 years of experience in this topic.
- The program is approved for 6.00 hours of CRCM credit.
This full day program includes:
- Coverage and exemptions;
- Special information booklet and good faith estimate requirements (including the new four-page Good Faith Estimate form and the new instructions for preparing the form);
- Use and completion of the HUD-1 and HUD-1A (including the revised HUD-1/1A and the new instructions for preparing the form);
- The new Closing Script (including the new GFE & HUD-1/1A Charges Comparison Chart), which must be deliver in writing and read to the borrowers;
- Prohibition against unearned fees and kickbacks;
- The new limitations (0% for certain charges and 10% for others) for amounts that appear on the HUD-1/1A compared to the GFE;
- The new limitation on charging a fee for an appraisal, inspection, or similar charge prior to providing the GFE;
- Affiliated business arrangement rules and disclosures;
- Escrow rules and disclosures; and
- Servicing rules and disclosures.
This program is designed for loan officers, loan processors, auditors, compliance officers and others charged with responsibility of assuring compliance with laws and regulations in the lending department.
Jack Holzknecht is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced consultant who has provided training to thousands of bankers and examiners for twenty-seven years. He has the ability to identify the key compliance issues from each regulation. Jack’s career began in 1976 as a federal bank examiner. He later headed the form and software and education divisions of a regional consulting company. In that capacity he developed loan and deposit form systems and software. He also developed and presented training programs to bankers in 43 states. Jack has been an instructor at compliance schools presented by the Georgia, Iowa, Kentucky, Pennsylvania, Nebraska, New York and Texas bankers associations. He developed and delivered compliance training for the FDIC and OTS for ten years. He is a Certified Regulatory Compliance Manager and a member of the National Speakers Association.
ABA Members are $225 per person and Non-Members are $450 per person. Registration fees include instruction, materials, refreshments and lunch.
Full registration fees will be refunded if a cancellation is received on or before ten business days prior to the meeting. If date of cancellation is less than ten business days prior to the meeting, a $100 processing fee will be retained. No refunds will be given for cancellations made the day of the program. Substitutions are welcome.
Dress for the seminar is business casual. To ensure your comfort, please bring a jacket or sweater. If you need additional information, the ABA office, 334-834-1890.
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