- HUD Updates FAQs on Good Faith Estimates
The U.S. Department of Housing and Urban Development has updated its summary of answers to frequently asked questions (FAQs) about the new Real Estate Settlement Procedures Act (RESPA) rules that went into effect at the beginning of the year. The January 28 update includes additional information about complying with RESPA’s good faith estimate (GFE) requirements.
Nutter Notes: Among other things, the update clarifies that if a borrower locks an interest rate after the GFE has been issued, a revised GFE must be issued within 3 days of the interest rate lock reflecting the expiration date of the rate lock in Line 1 and “N/A” in Line 4 of the “Important dates” section of the GFE. Any interest rate-dependent charges (Block 2, Line A and Block 10 on the GFE) and changed terms must also be updated on the revised GFE.
- Amendments to Massachusetts TIL Rule Proposed to Conform to Federal Rule
The Division of Banks has proposed amendments to its regulation implementing the Massachusetts Truth in Lending statute, Massachusetts General Laws Chapter 140D, to maintain regulatory consistency between federal and state Truth in Lending regulations. A hearing will be held at the Division’s offices on March 3 at 10:30 a.m., and written comments may be submitted to the Division until 5:00 p.m. on March 4.
Nutter Notes: The proposed changes include new sections to establish prohibited acts or practices in connection with higher-priced mortgage loans and in connection with credit secured by a consumer’s principal dwelling, and special disclosure requirements for private education loans. Other amendments would recognize less recent changes to the federal rule relating to electronic signatures, electronic disclosures, and credit card requirements.