#ThrivingThursday – Happy Birthday Regulation X! June 20th 1975, was the birthday of what is known as Reg X! Or RESPA as it’s commonly known. The Real Estate Settlement Procedures Act. What has Reg X done for you in the mortgage industry? Well this year alone Reg X paid me over 2k, I’ll tell you how. Since I’ve moved to WV 3 years ago, I had my house as a primary residence and per tax law was supposed to be “Homestead” but apparently it was not. Around Feb, sometime a tax assessor showed up in my driveway. I kid you not, I even told him who I was and asked him to make sure he made my taxes go down. We laughed and he verified this was my primary residence. Well not too far into the March I got an escrow “refund” check where my “lender” that was servicing my loan had wayyyyyy too much in an impound account for taxes. So per Reg X, all lenders have to do a balance reconciliation and return to owners any amount over 50 dollars above what is needed. So not only did my taxes go down and my payment drop almost 200 dollars, but I got back like 2k. No joke. This just happened. Almost 4 years after my purchase. Thanks REG X!
So what else does Regulation X do? I detail the four main points today for everyone of my fans to know! #CheckItOut ↓
As you can see Regulation X is still going strong after 44 years! Great law that our government got right over 40+ years ago. And still plays a major part of our #MortgageWorld. It prevents a seller from requiring a certain title company to be used, and why title is typically a closing cost you can shop for. It requires specific amounts for impound (known as escrow accounts) of taxes and insurance. And limits what a lender can take in advance, which is up to 2 months cushion. It prohibits kick backs, fee splitting and referral fees for anything of value, which still to this day is walked as a thin line by many. (Big Violation and is costly for those that do = 10k per violation) Reg X also requires a 15 day notice to consumers if their mortgage is ever transferred and gives consumers a grace period of 60 days if they sent the payment to the “wrong lender” collecting their payments.
These are consumer protection laws and rightfully so, it’s a great day to celebrate Reg X! So if you have questions about this law, reach out to me. You shouldn’t be “marked” late on your mortgage if your servicing is transferred inside the first 60 days. (Grace period I just explained) Happy 44th Reg X, thanks for protecting consumers as you do! 🙂
As Always –
#BuyWell & #SellWell