HUD published its new Final Rule reforming its RESPA Regulations in November, 2009. The new Regulations change the format of the Good Faith Estimate and HUD-1 Settlement Statement and will take effect January 1, 2010. The changes were brought about in an effort by HUD to simplify and improve the Mortgage process for Consumers by bringing more certainty into settlement charges and also encouraging Consumers to shop and compare settlement costs.  

Guardian Title and our experienced escrow staff are prepared for the implementation of the new Rule and will be in full compliance with the new formatting requirements imposed in the preparation of HUD-1 Settlement Statements for transactions that close on and after January 1, 2010.  

Guardian Title is prepared to implement the usage of the new HUD-1 Settlement Statement format, but the implementation of the new Rule has created challenges for loan originators and other settlement agents across the nation. In an effort to alleviate the concern, HUD announced November 13, 2009 that it will employ restraint in enforcement for the first four months of 2010 as the industry adjusts to the use of the new mandated formats for the Good Faith Estimate and HUD-1 Settlement Statement. This announcement does not mean that the implementation of the new Rule is delayed, but that the enforcement division of HUD will exercise restraint to those in the lending and settlement industry who have demonstrated a good faith effort to comply with the new Rule during this grace period.  

Further information relating to the announcement by HUD can be viewed at: