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RESPA Policy Manual

Are you an originator or servicer needing assistance with implementation of the mortgage servicing rules? Then the RESPA Policy Manual is for you! This policy is designed to aid mortgage lenders in the development of policies integral to your compliance management system called for by the CFPB. This document summarizes RESPA regulations and requirements for Origination as well as modified Servicing requirements called for under Regulation X as amended by recent Mortgage Servicing Rule updates.

Overview

Mortgage lenders and servicers must comply with the initial disclosure, settlement, and servicing requirements under RESPA. This policy summarizes the federal regulation, covered transactions, and violations under Reg. X, defines key terms and outlines the disclosure requirements of RESPA for loans not covered under the Know Before Your Owe Rule.

This policy also addresses RESPA mortgage servicing guidelines by detailing escrow account creation and maintenance requirements including force-placed insurance procedures and providing guidance for loss mitigation requirements.

Also included is an Appendix with sample formats and model disclosures required by the regulation.

The following agencies and offices require implementation of this policy:

  • CFPB
  • HUD
  • Fannie Mae
  • Freddie Mac
  • VA
  • USDA
  • Federal Home Loan Banks


Benefits

The RESPA manual features the following benefits:

  • Supports strong operational preparedness
  • Establishes staff training requirements 
  • Defines roles and responsibilities
  • Helps meet regulatory and internal compliance requirements 
  • Allows policy revisions to fit your business model
  • Delivered via email within one business day

Optional Services

Maintenance: Receive regular and ongoing industry updates to keep your policy within regulatory requirements.

Publishing: Publish your manual, including your company procedures, in AllRegs Online to complete your policy manual solution.

Contact your account manager for information regarding these optional services!


Policy Manual
RESPA
Section Title Priority Action
1.1 Goals and Objectives Mandatory Review Include the point of view or culture of your organization in this section, if applicable.
1.2 Required Review Mandatory Review Be sure this accurately reflects your company’s annual policy review process.
2.1 Internal Controls Mandatory Review Include or reference related procedures in this section.
3 Staff and Training Mandatory Review Include the means by which your organization provides and tracks required training.
5 Mortgage Settlement and Escrow Account Optional Enhancement This section covers all disclosures under Regulation X, including the Good Faith Estimate, Special Information Booklets, HUD-1/1-A Settlement Statement, Affiliated Business Arrangements, and the Servicing Disclosure Statement. You may choose to incorporate specific policies as applicable to your organization.
5.2 / 5.3 Good Faith Estimate / HUD-1 Settlement Statement Mandatory Review These sections are applicable to Reverse Mortgages and not applicable to loans subject to the Know Before You Owe Rule. Determine if this section is applicable and should be included.
5.4 Affiliated Business Arrangement Optional Enhancement If this section is applicable, you may wish to further define or specify such arrangements.
7 Appendix Recommended Best Practice Review and customize the model forms and sample formats to align with documents in use in your organization.