The Department of Housing & Urban Development (HUD) has recently revised two of the primary disclosure documents used under the Real Estate Settlement & Procedures Act. As of January 1, 2010 lenders are required to use the new Good Faith Estimate form. The form differs from the old version in that it requires the lender to:

• Make basic informational disclosures about the loan product and its terms
• Provide additional information about the items for which the borrower is charged
• Not increase charges between disclosure and settlement within certain tolerances set by law

Click Here to Download the NEW Good Faith Estimate

HUD has also released a new version of the HUD-1 Settlement Statement. The new HUD-1 is similar to the original version on pages 1 & 2, however there is a new page 3 which integrates the Good Faith Estimate and the Settlement Statement so that borrowers can easily see what their original estimates were and what they are now being charged. The charges are not allowed to differ by more than the permitted tolerances.

Click Here to Download the NEW HUD-1 Settlement Statement

Newly revised for 2010, HUD’s latest publication related to buying a home is titled, “Shopping for Your Home Loan: HUD’s Settlement Cost Booklet.” It is a must-read for anyone who will be buying a home in 2010 (or beyond).

In spite of the title, the booklet doesn’t just contain information on how to shop for a home loan using new forms and an explanation of the settlement costs involved in a real estate transaction. The guide also contains valuable information on a variety of other topics related to purchasing a home. (It’s a whopping 4 Megabyte download!)

Click Here to Download the new booklet “Shopping For Your Home Loan”