Understanding the New GFE and HUD-1 Settlement Statement and Avoiding the Pitfalls

Receiving the new Good Faith Estimate and signing a HUD-1 Settlement Statement is daunting for most borrowers. Not only are they cryptic and confusing, but the HUD-1 bears little resemblance to what is shown on the GFE. Consumer lending professionals are aware of the recent changes to federal laws regarding the GFE and the HUD-1, but many are unsure how to provide the required information in a uniform manner that can be most easily understood by the borrower. This OnDemand Webinar will cover the background and the reasons for the changes to these forms, explain the key provisions in the forms and the relationship between the GFE and the HUD-1 and identify the pitfalls in both the GFE and the HUD-1 with special attention on how to avoid such pitfalls. This program will also cover best practices for avoiding the pitfalls by implementing a clear and concise system that can best be understood by the borrower.

Authors

Agenda

Implementation of the Good Faith Estimate Form

• Background Reasons Behind the Changes
• Analysis of the Key Provisions of the GFE

Implementation of the HUD-1 Settlement Statement 

• Background Reasons Behind the Changes
• Analysis of Key Provisions of the HUD-1

The Most Common Pitfalls in the GFE and HUD-1 Relationship - Between Box 1 of the GFE and the 800 Section of the HUD-1

Best Practices: Avoiding the Traps

• GFE
• HUD

Additional Formats