In the news ... Wednesday, October 14, 2009

Mid-Atlantic Area



32 The Green

Dover, DE  19901

(302) 734-3570

(800) 722-0784

(302) 734-3254 - fax


The 800 King Street Building

800 King Street, Suite 304

Wilmington, DE  19801

(302) 661-1997

(302) 661-1996 - fax



Three Glenhardie Corporate Center

1265 Drummers Lane, Suite 220

Wayne, PA  19087

(610) 687-8020

(800) 842-2080

(610) 687-6056 - fax


Calder Square

P.O. Box 10326

State College, PA  16805-0326

(814) 238-3600

(814) 238-3604 - fax


125 Technology Drive, Suite 101

Canonsburg, PA  15314

(866) 364-2777

(724) 746-5434 - fax



Columbia Corporate Park

8850 Stanford Blvd., Suite 2900

Columbia, MD  21045

(410) 953-6763

(800) 664-8306

(410) 953-6761 - fax



9303 Center Street, Suite 101

Manassas, VA  20110-5547

(703) 365-2300

(800) 232-6817

(703) 365-2400 - fax


1245 Mall Drive

Richmond, VA  23235

(804) 897-5499

(888) 859-9222

(804) 288-4090



The 30-year old RESPA rule has seen minor amendments over the years, but as of January 2010 the Department of Housing and Administration is ushering in sweeping reforms that will dramatically change the way lenders and title companies conduct business and the way attorneys represent clients.


HUD’s goal with the reform rule was to make the borrowing and closing process more transparent to allow consumers to have a better understanding so that they could shop for the best possible loan and settlement services.


Two revised forms have come out of the reform: as of January 1, 2010, a 3-page Good Faith Estimate (GFE) and a 3-page HUD-1 settlement statement will be required on all loans that are covered by RESPA.  The new forms are different, but the major change affecting the lending community is that certain items estimated on the GFE cannot change, not even by one penny, when it comes to the closing statement.  These items fall within HUD’s new “zero tolerance” bucket.


A group of fees will be allowed to change but only by 10% (the 10% tolerance bucket). Understanding the tolerance buckets will be critical to attorneys representing buyers.




We will spend time reviewing the revised HUD-1 and GFE so that you will have a comfort level explaining fees and loan terms at the closing table.  No longer will the items listed on the HUD add up to fees being charged to the buyers, but there are ways for you to make certain your clients are properly charged.




Dover Downs – Diamond Room

November 20, 2009 from 9-12 (lunch is served @ 12:00)





Reserve your seat today by emailing Kate Blake-Endicott @  (Seating will be limited.)


Please contact Kate Blake-Endicott at 302.734.3570 should you have any questions in this regard.


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Old Republic Title Update is published by the Mid-Atlantic Area Office of Old Republic National Title Insurance Company in an effort to provide information relative to our industry on a timely basis. None of the materials included in this publication should be deemed legal or underwriting advice or should be acted upon without prior consultation with your underwriter or counsel./font>