Daily News and Information for the Mortgage Loan Originator
HUD Issues Final RESPA Rule
Thursday, November 20, 2008
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McLEAN, VA. – The National Association of Mortgage Brokers (NAMB) announced its disappointment with the U.S. Department of Housing and Urban Development’s (HUD) release of the final Real Estate Settlement & Procedures Act (RESPA) Rule. NAMB believes the ultimate goal of a simplified mortgage process was not accomplished in the rule.
HUD’s RESPA Rule fell short after repeated requests by industry associations and Congress to take a comprehensive approach to RESPA reform by creating a level playing field for consumers. In November 2007, Congress noted the necessity of treating all origination channels equally with the passage of H.R. 3915, the “Mortgage Reform and Anti-Predatory Lending Act of 2007.” In addition, NAMB’s comment letter, submitted to HUD on June 12, 2008, cited two studies conducted by the Federal Trade Commission (FTC) and the Federal Reserve Board (FRB). Each of these studies revealed that different origination channels disclosing differently confuses consumers, and often times causes them to choose a more expensive loan product.
“HUD, despite taking significant steps to address RESPA reform, failed to recognize the need for a unified, comprehensive approach towards accomplishing a simplified mortgage process,” said NAMB President, Marc Savitt, CRMS.
NAMB will continue to review the 341-page RESPA Rule, new GFE and new HUD-1 form, and provide further comment and analysis in the future.
For more information on the release of the final RESPA rule, please visit the NAMB Legislative Action Center.
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Articles :
HUD: GFE Reform will Eliminate Junk Fees HUD proposed mortgage reform designed to help consumers better understand their loan terms so that they can shop more effectively for the largest purchase of their lives. HUD's proposal reforms the more than 30-year old rules of the Real Estate Settlement Procedures Act (RESPA), and improves disclosure of the loan terms and closing costs consumers pay when they buy or refinance their home.
HUD Extends Comment Period on Proposed Mortgage Reforms The U.S. Department of Housing and Urban Development is extending the public comment period on the Bush Administration's proposed reforms to the real estate settlement process.
RESPA Proposal Would Harm Housing Affordability According to one industry group, HUD's RESPA proposal "would result in significant increases in home purchase costs and undermine critical financing support at a time of severe mortgage and housing market turbulence."
Brokers File Lawsuit Over RESPA Rule The National Association of Mortgage Brokers filed a lawsuit against the U.S. Department of Housing and Urban Development after it recently issued the Real Estate Settlement Procedures Act Final Rule issued November 17, 2008. NAMB argues that the Final Rule is in violation of law, finalized on a flawed consumer testing methodology, and will have a detrimental impact on small businesses consequently having a negative affect on consumers.
