By Sue Saunders, NVAR General Counsel

The final rules reforming the Real Estate Settlement Procedures Act (RESPA) have finally been published by the U.S. Department of Housing and Urban Development (HUD). Generally, these changes to the RESPA rules do not involve the real estate agent; but they are important to know and understand so that the agent can help his client understand lending and closing disclosure requirements.

The changes shortened the four-page standardized Good Faith Estimate (GFE) form to a three-page form. Effective January 1, 2010 HUD will require mortgage lenders and mortgage brokers to provide consumers with the new standard GFE form within three (3) days of receiving an “application”. The new GFE has a summary of key terms of the loan, an estimate of total settlement charges, and an estimate of total settlement costs. Page 3 of the GFE form provides space in a chart format for a lender or broker to present a borrower with two additional loan options. This is for comparison purposes so the borrower understands that a higher interest rate could reduce up-front settlement costs and a lower interest rate could increase the up-front charges a consumer would pay at the closing table. Lenders/brokers are not required to fill out this chart; it is optional.

The Settlement Statement (HUD-1) form is redesigned to have the same categories of loan information as the GFE form (although these are not necessarily in the same order as the GFE form).

 

This GFE estimates your settlement charges. At your settlement, you will receive a HUD-1, a form that lists your actual costs. Compare the charges on the HUD-1 with the charges on this GFE.

Mortgage rates are at an all time historical low - the average interest rate on a 30-year fixed rate mortgage has dropped to 5.01%. with lower rates below 5.01% available to some customers of large banking institutions. Mortgage rates have dropped 1.5% points since October, creating a savings of $185. per month on a $200K loan.

Dramatic Increase in Las Vegas Real Estate Sales

December generated a dramatic increase in Las Vegas home sales. We sold 2,498 homes, up approximately 184.2% from December a year ago, according to the Greater Las Vegas Association of Realtors. December is traditionally a slow time of year due to the holidays and winter weather…Many people are taking advantage of the great homes and great prices of these homes… it’s just amazing what steals and deals are out there.

Mortgage rates are changing by the hour.  It’s amazing. I call my local lenders here in Las Vegas and honestly they will say well two hours ago the rate was ____________.  but right now the rate is __________, two hours from now who knows what the rate will be.

Try being the buyer and having this to deal with.  When to lock the rate and when not to.  I advise my first time home buyers and all clients that will be purchasing a home with a loan that they need to make up their minds and feel comfortable with their decision. 

The Government has a lot of different programs in the works for homebuyers. In Las Vegas we have experienced ups and downs and downs and ups.  Most people that are buying here are buying because they love this city of lights and fun.  Not to mention the fantastic weather Las  Vegas gives us.  I love being a RE/MAX agent finding clients exactly what they are looking for.  I have lived in Summerlin for the past 10 years and am a Summerlin Specialist.  I do sell the whole valley, highrises too.  I even help people find rentals for free.  Check me out at http://www.PennysProperties.com