Compliance Blog

Posted by Anthony Demangone

You asked for it, so here it is.  Our section-by-section overview of the RESPA final rule.  Today, however, we'll just provide a general posting to give you some useful tools.

First, here's a link to the guidance documents that will provide all the answers.

• The RESPA final rule.

• HUD's FAQ document, concerning the final rule. (Updated 09/09/09.  HUD seems to be updating this document a lot.  So it may make sense to keep checking back from time to time.)

And here's another document that I think you'll find useful.   I've cut 16 pages out from the RESPA rule.  Within the 16 pages, you'll find Appendix A and C, as well as the model GFE and HUD-1 forms.  Appendix A provides the instructions for the HUD-1, and Appendix C provides the instructions for the GFE.  Here's the Golden Guidance.  If you have a question on how to complete one of the forms, I think these 16 pages will answer most of your questions.

So, when looking for answers, here's how I would attack RESPA issues.

1. Look at the actual final rule.
2. If the answer isn't clear, look to the preamble to the final rule.  This is the part of the final rule where HUD discusses new parts of the guidance to explain what it was thinking and what it expects.
3. If it the answer still isn't clear, look at the FAQ document.
4. If the answer still isn't clear, and the issue involves the GFE or HUD-1, look at Appendix A or C.

5. If you still are not sure, flip a coin.  Just kidding.  But if you've done all this work and you still do not have an answer, you could ask for a legal opinion from an attorney (expensive), contact HUD directly (you may not get the answer you want) or make the best business decision you can and then document your research.  If an exam or lawsuit questions your decision, you'll have to defend yourself.