Industry NewsMortgage

Builders’ incentives to buyers under scrutiny

HUD revisiting rules for affiliated businesses
Published on Jun 8, 2010

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by CareyBot

Federal regulators are once again scrutinizing incentives tied to the use of homebuilders' affiliated mortgage and title companies, looking for evidence that they cost consumers more than they're worth, help inflate appraisals, and lower underwriting standards.

The Department of Housing and Urban Development (HUD) in 2008 proposed a ban on such incentives, but backed down last year after homebuilders sued over the proposed rule change (see story).

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