Wednesday, March 23, 2011

HUD explains some of the fine print to poor confused lenders

So I think it goes like this:

Loan salespeople, especially mortgage brokers and reverse mortgage sellers, are deeply scared of having to follow the new loan originator compensation rule taking effect April 1, which will prohibit various allegedly sneaky ways mortgage salespeople have found of getting paid. Especially stuff like getting paid extra for talking borrowers into higher interest rates.

Therefore, with sublime unintended irony, the members of a profession that spent a decade upholstering a continent with incomprehensible and fearsome paperwork now claim to suffer from confusion about the dreadful fine print in that compensation rule.

Reverse Mortgage Daily now explains that HUD said oh, OK, see if this helps, and spelled out some guidance on how to complete RESPA property sale disclosures under the new rules, to help out the aforementioned confused lenders. HUD's RESPA page being one place to watch for more.

OK, so the fine print in this stuff is a little hard to follow. But this is their business, right?

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