BrokerageIndustry News

Mortgage brokers sue to block RESPA

Treatment of yield-spread premiums at issue
Published on Dec 22, 2008

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by CareyBot

The National Association of Mortgage Brokers is going to court to block implementation of changes to the Real Estate Settlement Procedures Act (RESPA), saying the Department of Housing and Urban Development failed to assess the impact on small businesses.

HUD's RESPA rule changes include a standardized Good Faith Estimate form, which requires the disclosure of yield spread premiums paid by lenders when borrowers take out loans with higher interest rates. The GFE also requires that the rebates be credited to borrowers.

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