Industry News

HUD won’t withdraw proposed RESPA rule changes

Congress, Bush administration in showdown over plan

The Department of Housing and Urban Development says it's willing to modify, but not withdraw, a proposal to overhaul loan disclosure forms and revamp rules governing the provision of settlement services -- resisting calls by industry groups and a majority of members of the House of Representatives to scuttle the plan. In an Aug. 7 letter signed by more than 240 House colleagues, Reps. Ruben Hinojosa, D-Texas, and Judy Biggert, R-Ill., urged HUD to withdraw proposed changes to the Real Estate Settlement Procedures Act (RESPA), and work with the Federal Reserve on simplified disclosure forms instead (see story). HUD says its proposed changes to RESPA -- which include a new, four-page Good Faith Estimate that's intended to help home buyers comparison shop for a loan, title insurance and other settlement services -- would save consumers $8.35 billion a year. But the Fed and industry groups want HUD to develop a single disclosure form that complies with not only RESPA, but ...

Comments