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| News Flash 1/22/10 The New Respa and You - Part II and FHA CHANGES As we mentioned last week, we are covering the RESPA changes in parts. Part II - How commissions will be shown on the final settlement sheet. If a real estate firm "net funds" the commission to the real estate agent, the commission will be split out between the earnest money and the commission on the settlement statement. This could be confusing to the seller. Example: Total commission on the sale is $30,000. If the earnest money is $5,000, the front page of the settlement sheet will show $25,000 commission, $5,000 excess deposit. This is simply a different way of showing the total fees; however, it is new to the industry. Also....FHA CHANGES http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/ FHA will have a formal letter out soon; the above link is the press release. Mortgage Insurance Premium with FHA - now 1.75%, going to 2.25% If credit score is not above 580, borrower will need 10% down Seller concessions reduced from 6% to 3% It is anticipated that we will see these changes take place in the spring and summer months. Please call us with any questions. Ann & Mo |
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