The Department of Housing and Urban Development (HUD) released the new Settlement Cost Booklet. The 49 page informational booklet must be delivered to consumers within three days of the application along with the Good Faith Estimate (GFE) for a mortgage loan by their lender or mortgage broker. Even though the HUD informational guide was released on Dec. 16, 2009 it must be used beginning on Jan. 1, 2010. Failure to provide the new HUD booklet to consumers within three days of the loan application is a violation of the Real Estate Settlement Procedures Act (RESPA) Section 5.
An electronic copy of HUD’s Settlement Cost Booklet can be sent to the borrower electronically in lieu of the printed booklet.