Industry News

RESPA deadline looms

OMB comment expected soon on HUD's secret plan

The deadline is fast approaching on the White House Office of Management and Budget's 90-day review of the U.S. Department of Housing and Urban Development's plan to revamp the Real Estate Settlement Procedures Act. RESPA watchers expect OMB to issue a decision or recommendation to HUD sometime next week; however, OMB has not said whether its review will be finished on time. HUD has kept the proposal it sent to OMB in December under wraps, so no one knows whether it follows the same lines as HUD's original thinking or incorporates some material changes to the initially proposed regulations. The outcome is important because new RESPA regulations would have far-reaching repercussions for real estate loan and settlement companies. HUD submitted its RESPA proposal to OMB for its review in December 2003, nearly a year and a half after the department's first rumblings on the subject. OMB has a 90-day review period. The original proposal would have revamped the good faith estimate lend...