1.6.4 RESPA
The Real Estate Settlement Procedures Act (RESPA) now requires a new Good Faith Estimate (GFE)
and HUD-1 form that requires lenders to make certain the specific loan costs shown on the GFE at  time of application harmonize with the settlement statement the borrower sees at closing. In the past,
the forms routinely differed, causing consumer complaints that led to the new regulations. If the amounts  are expected to differ during the loanprocess due to verifiable "changes in circumstances," the lender is
required to re-disclose and issue a revised Good Faith Estimate. At the same time, all the calculations  must be consistent on the system to make certain the HUD-1 accurately reflects the changes.
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