Industry NewsMortgage

Figuring out new RESPA rules: lenders report delays, confusion

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Many lenders haven't yet fully implemented technology to comply with new rules that took effect this year under the Real Estate Settlement Procedures Act (RESPA), and most are taking longer to provide disclosures when borrowers submit loan applications, according to a survey by Equifax.The Equifax survey of 105 lenders who use its employment and income verification service found 79 percent are taking longer to take an application and provide disclosures to borrowers since the RESPA rule change went into effect Jan. 1. About 72 percent of lenders said borrowers were confused about the multiple disclosure documents they receive.Only 56 percent of respondents have completely implemented the technology necessary to comply with the new regulations, Equifax said in a press release.Lenders and settlement service providers are now required to use a new standardized good faith estimate (GFE) and HUD-1 settlement statement form that are intended to help consumers comparison shop and restrict cha...