|
The New 2010 RESPA Regulation 2010 Good Faith Estimate (GFE) On 10/1/1998 Alan Greenspan had this to say before a Congressional Committee: "I know of no set of supervisory actions we can take that would keep people from making dumb mistakes. I know of no piece of Legislation that can be passed by Congress that would require us to prevent them from making dumb mistakes. The way to keep people from making dumb mistakes is not through more laws, more regulations and more forms, but to educate consumers well enough they will protect themselves." Back Then, When Alan Greenspan Spoke, The President and Congress Listened. Not Anymore. On 1/1/2010, 12 years later, a new Ruling became effective: the 2010 RESPA Ruling. This new Ruling is a prime example of what occurs when our Elected Representatives do not understand an Industry and consumer behavior, that they decide to intervene under the assumption that consumers are better protected. The New 2010 GFE has Three Sections that are far from simple. We are required to furnish our borrowers a 50+ Page Booklet. There is also a 50+ Page FAQ Document to help them understand. Prior to this, we were only required to send our borrowers a One Page GFE. Somehow, this new Ruling escaped the scrutiny of our Government's Paper Reduction Program. Fortunately, we are allowed to email these to you, as long as we receive evidence of receipt within 10 Days. We cannot move forward until receipt is documented. This Ruling comes at a price. Already, it has driven up costs and time to Settlement. Surely, we'll see more cost increases once everyone involved computes exactly what the increased cost is to be in full-compliance with this Ruling.
|