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Industry pushes for HUD to drop RESPA rule change

Lawmakers asked to sign letter to Housing Secretary

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Editor's note: Participate in an Inman Community group discussion about proposed changes to the federal Real Estate Settlement Procedures Act (RESPA) at the Inman Community site. Read a related post to this article here. Trade groups representing Realtors, lenders, title insurers and settlement services providers are asking lawmakers to sign a letter to Housing Secretary Steve Preston urging HUD to scrap proposed changes to the Real Estate Settlement Procedures Act and work with the Federal Reserve on simplified loan disclosure forms instead. HUD's proposed changes to RESPA, unveiled in March, include a new "Good Faith Estimate" form that's intended to help consumers compare different loan offers, and incentives for packaging settlement services with loans. HUD estimates the rule change would save consumers about $8.35 billion a year, but industry opponents say regulators have overestimated the benefits and underestimated the costs of implementing the changes. R...