Posted by Virginia/PA on 11/16/10 8:02am
Msg #361490

HUD question

It is my interpretation that the new HUD is supposed to protect the consumer against bait and switch practices since their costs can only increase by 10% instead of thousands as were seen at times in years past.

The 3 sections on page 3 of the new HUD are specific in that the top section says that those amounts cannot increase at all.

I had a signing last week where there was an increase in those amounts - on about $16.00, but an increase nevertheless. Is the lender pushing the envelope and testing the system to try to get increased costs through without being noticed? Has anyone else had this happen to them?

Reply by MW/VA on 11/16/10 8:38am
Msg #361495

There is a percentage tolerance factor for changes. I've seen quite a few with lender credits on the HUD when the costs went over that tolerance factor (it was listed on the HUD as a "cure").
I'm glad to see this. IMO it has eliminated that "bait & switch" game.

Reply by Virginia/PA on 11/16/10 4:56pm
Msg #361609

I was referring to the top section which cannot increase at all. The 2nd section allows for a 10% increase.