Upcoming Events:
REALTOR® Magazine’s Good Neighbor Society seeks entries by February 19 for new program to help start-up charities n This program matches REALTORS® who would like
to expand their community service outreach
February 24 WCAoR: Rookie Club WCAoR - 11:30 to 12:30 p.m.
lected to receive a year of one-on-one mentoring. Individuals REALTORS®, who have shown dedication to their communities by volunteering and working on charitable
R
EALTOR® Magazine’s Good Neighbor Society is
efforts, are encouraged to apply. The Good Neighbor Award
now accepting applications for their Volunteering
winners on average spend more than 20 hours a week on vol-
Works program. Designed for REALTORS®, Volun-
unteer work. Since 2000, there have been nearly 100 winners
teering Works aims to partner REALTORS®, who are NAR
and honorable mentions of the Good Neighbor Award. For a
members, with a mentor and a $1,000 grant to help expand
Volunteering Works entry form, go to www.Realtor.org/gna
their community outreach and improve their community serv-
and click on “Volunteering Works.”
ice initiatives. Five Volunteering Works applicants will be se-
March 3 AMBA Monthly Luncheon Austin Country Club - 11:30 a.m. March 11 8th Annual HBA Crawfish Boil Teravista - 6 to 10 p.m. March 17 NAHREP Monthly Luncheon Cool River Cafe - 11 a.m. March 18 WCAoR Luncheon Wingate Hotel/Conference Ctr. - 11:30 a.m.
The entry deadline is Feb. 19, 2010. [RL]
March 24 8th Annual St. Patti’s Day Golf Tournament Forest Creek Golf Club - 11:30 a.m. March 25 WCR Monthly Luncheon WCAoR Office (location change) - 11 a.m.
—Associates—
In Progress February 2010 • Vol. 14 • Issue 10
enjoyable. entertaining. It’s all about you.
Are you familiar with new RESPA rules that are in effect? n The National Association of REALTORS® quiz
provides a quick overview of key points
provide borrowers with a new HUD-1 settlement statement. While the new rule is quite complex and requires ample studying, Realty Line found this quiz from the National As-
By Linda McNabb
R
ESPA. It may seem like a new acronym to add to
the real estate professional’s jargon but it has ac-
tually been around since 1974. It’s just been ut-
tered more frequently lately because of changes that went into effect this month, creating a buzz in the industry and prompting mortgage and title companies and others to offer numerous seminars addressing the topic. Short for the Real Estate Settlement Procedures Act, it was enacted to provide consumers with improved disclosures of settlement costs and to reduce the costs of closing by the elimination of referral fees and kickbacks. Through the years, the Department of Housing and Urban Development (HUD) has issued regulations and policy statements to provide RESPA guidance to industry and consumers alike. On Nov. 17, 2008, HUD published a new final rule that took effect on Jan. 1 of this year that mandates loan originators use a new Good Faith Estimate (GFE) that clearly dis-
sociation of REALTORS® that gives a quick overview of the key points. Find out how well you know about this important issue to stay on the right side of the law.
b) Purchase of a condominium with a Federal Housing Administration mortgage c) Purchase of a single-family home with a Veteran’s Administration loan d) Purchase of a two-flat that the owners plan to live in
1. Which of the following is NOT a settlement service
and rent out the other unit financed with a conventional loan.
that is covered by RESPA: a) Mortgage loan origination
5. To combat higher costs in real estate transactions, Sec-
b) Furniture moving c) Real estate brokerage services
tion 8 of RESPA makes it a criminal act for settlement serv-
d) Lender’s credit report
ice providers to pay fees for the referral of business. One exception to this rule allows a real estate professional to
2. Under RESPA, a real estate professional may give in return for the referral of real estate settlement service business:
pay a referral fee to: a) A mortgage broker who refers a buyer who has been pre-approved b) A previous customer who refers a neighbor
a) A thank you
c) Another licensed real estate broker who refers a buyer
b) A thing of value
from another part of the country
c) A kickback
d) A relative who overhears a customer saying he or she
d) A fee
is moving.
closes key loan terms and closing costs and closing agents
P. O. Box 81366 Austin, Texas 78708-1366
a) Purchase of a small warehouse financed with a Small Business Administration loan
3. To provide consumers Presorted Standard U.S. Postage PAID Austin, Texas Paid Permit #715
with cost information about
6. Another exception to the RESPA rules contained in
the mortgage process, RESPA
Section 8 allows real estate professionals to receive com-
created the good faith esti-
pensation for:
mate (GFE) and the HUD-1
a) Filling out a mortgage application
closing document. RESPA re-
b) Telling the home inspector the address of the property
quires that the HUD-1 form be provided to the: a) Tax assessor b) Next-door neighbor c) Real estate salesperson
to be inspected c) The reasonable value of goods and services actually provided or performed d) Doing the same thing they have been paid to do as a real estate professional.
d) Buyer 7. RESPA allows title companies to provide real estate 4. RESPA rules do NOT You can visit us online 24/7 at www.realtylineonline.com
cover this type of transaction:
RESPA: Continued on page 4