RESPA – Real Estate Settlement Procedures Act
Source: http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm
Changes are on the way! Just when you think you have it all figured out someone comes along and knocks you off your feet! Florida Real Estate professionals have faced many obstacles over the past 24 months that have made it more difficult to get transactions to the closing table. I meet Realtors every day that are working more hours for less money. The amount of hours it requires to close a transaction in today’s market has doubled at the very least. How do they do it?
Quality Title & Escrow has tried to keep real estate professionals and lenders informed about the pending RESPA Real Estate Settlement Procedures Act that will take full effect on January 1, 2010. HUD will require that loan originators provide a new Good Faith Estimate with key loan terms and closing costs and that closing agents provide a new HUD-1 settlement statment. At first glance the changes made to the documents have certainly made it easier for consumers to understand. Many of us in the title insurance world welcome the changes as it will make explaining the documents easier. The question is what do these changes mean to the Realtors who will be working with the buyers to find a home? I have just a few quick tips that I think will help you as you develop a game plan for 2010.
1) Develop a strong relationship with a lender/broker – this is key! They will be able to help guide you and your buyer through the process.
2) Build a better relationship with your buyer – your buyers will now be encouraged to shop for services they know little about. They will need you more than ever!
3) Take control of the transaction! Realtors who take control of the transaction have a higher closing ratio than those who do not. Start at the beginning of the selling process and tell your buyers how the process will go and what role you will play. Set expectations at the start and it will save you headaches in the end.
4) Build a relationship with a title company – Your vendor relationships will be more important than ever. Your title company will be an important resource when your buyers & sellers have questions about the new regulations.
Quality Title & Escrow holds regular seminars on the new HUD & GFE changes. Feel free to contact us at info@qualitytitleinsuranc.com to learn more.
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