Embarrased, mortified, simply put, I am ashamed. Yesterday I conducted my first closings using the new HUD-1. And, for the first time in my life, I felt like a scam artist (if a scam artist has a conscience). Make no mistake, I am serious. I found myself cringing while explaining the “improved” HUD-1 and apologizing to the consumers for the LACK of transparency in what I was asking them to sign.
The glazed look on their faces only worsened my discomfort. In my career I venture to guess that I have prepared and explained more than 10,000 Settlement Statements. Now, I am shuffling papers and jumping back and forth between line items trying to reveal the whole financial picture. After going from point A to B then to C and back to A, the borrowers gave me a “You’ve got to be kidding me” look. I could only offer that the new RESPA regulations are here to help the consumer.
Ethical professionals care
I am not adverse to change but what was once a one or two page form is now six pages with three of the pages being optional. For any professional who believes in the importance of full disclosure, the last three pages are essential. Pages one, two, and three are the new HUD-1 standard and the fourth page contains signature lines (silly me, I think this is kind of important). The last two pages include one from the lender and one from the title insurance agent to outline the “hidden” fees charged but not disclosed on the first two pages. But remember, the last three pages are optional.
With the absence of required full disclosure, we’ve created an information vacuum with the unintentional consequence of establishing a playground for the true con artists to prey on consumers.
Hope IS part of my game plan
Maybe I am feeling this way because the procedures are new. Maybe I am not reading the new rules correctly. Should I attend one more webinar, seminar, hudinar, or go find the most recent version of the FAQs? Something tells me that my discomfort won’t be addressed in these outlets. How do you achieve comfort when you know you are pedaling something that just isn’t right?
I can only hope that ALTA is listening to its members and fulfilling its promise to report back to HUD on our experience in the field. My next hope is that HUD will listen. But most of all, I hope my industry colleagues will continue to be vocal. The Consumer deserves no less.
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