Posted by DianeCipa on 11/19/07 6:46pm
Msg #222059
the birth of RESPA
I found this gem of a story published in 1976 by Mary Clay Berry. If you are a history buff or just like to understand everything, it's a great insight into the beginning. Hey, before this law was passed there was no such thing as a HUD-1 or GFE.
This does NOT link to my blog....just in case anyone was wondering. 
http://www.aliciapatterson.org/APF001976/Berry/Berry03/Berry03.html
Enjoy!
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Reply by sue_pa on 11/20/07 7:54am
Msg #222101
there was no Note - the equivalent was called a Bond.
Title insurance didn't exist in this area - your attorney's certificate of title was sufficient (and we used them well up into the 80s).
Not sure when lenders started requiring title insurance but I recall as late as the mid to late 90s a local lender removing the insurance requirement (they didn't pay the premium, they removed the requirement) for a very wealthy borrower. He told them he'd remove all his and his family's personal and business accounts because he didn't like the insurance premium.
Settlement sheets (still can't really call it a HUD) were prepared in pencil, at the table.
If the buyer was borrowing money, the closing was held in the bank's conference room. The deeds and mortgages were filed IMMEDIATELY after closing - as in minutes because all the lenders were within 1/2 block of the court house.
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Reply by LisaWI on 11/20/07 8:19am
Msg #222104
Didnt read the article, but another bit of trivia is the settlement statement for a purchase was actually perforated in the middle and torn in half at the closing. One for seller and one for buyer.
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Reply by sue_pa on 11/20/07 8:36am
Msg #222106
I believe that was the deed - hence the name Indenture - the indents had to match up. Needless to say, I've got no life and that's why I know and love this kind of 'important' information.
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Reply by LisaWI on 11/20/07 6:18pm
Msg #222228
Re: the birth of RESPA-to Sue
"Here's a little known secret for you Lisa: When the HUD-1 form was first designed ( in the mid '70's), it was designed to be perforated up the center, so that the left half could be torn and given to the buyers and the right half to the sellers---for privacy reasons." Quoted from someone who has been in the Title Business before I could walk.
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Reply by sue_pa on 11/21/07 11:57am
Msg #222323
Re: the birth of RESPA-to Sue
I LOVE this stuff. I never saw that form. Now I'm really curious. Are you in one of those funky escrow states? I believe I read somewhere that in CA there are 2 separate documents - one for the buyer and one for the seller so they can't see the other's figures. In PA, both sides see everything as it's on one document - always have.
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