New RESPA Rule – There’s a Gray Area

HUD’s stated objective (well, at least one of the most important ones) with the new RESPA Rule is to bring about much needed transparency in the real estate closing process. While the GFE-HUD comparison sheet requirement certainly has pressed lenders and settlement services providers to quote their fee much more accurately, there is still an element of opacity.

As part of the new rules, lenders and settlement service providers are no longer allowed to itemize “administrative fees.” The rule applies to all settlement service providers, whether they are on the lender provided list or not. Now, in the normal course of business, consumers would want to see an itemized list of charges, especially because the HUD Settlement Statement does not allow for itemization. If the goal is transparency, then breakdown of lender’s origination cost, title fee, closing fee, etc. must be visible.

What’s the solution? We believe we have the answer. Easy HUD software has a “Smart Itemization” feature. You can actually fill-in the itemization instead of entering a “lump-sum” charge on the HUD. And, you can print the itemization sheets separately. So, the bottom line is, HUD forms including the GFE-HUD comparison sheet will get a lump-sum value and yet you can provide clients with a breakdown! Isn’t this cool?

If you are a not a current Easysoft HUD 3.0 user, see what you are missing. Download a trial copy at:

Please let me know your thoughts in the comments section below.

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