Q&A on RESPA
The Department of housing and Urban Development (HUD) has released a 16 page frequently asked questions report on August 13. Following is information contained within that report.
<B>Q; What happens if a GFE (Good Faith Estimate) is not provided to the borrower?</B>
A: In a transaction involving a federally related mortgage, the loan originator is required to provide a GFE to the borrower. Failure to provide a GFE as required is a violation of Section 5 of RESPA.
Stay tuned for more information on the RESPA changes.