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House majority opposes RESPA reform proposal

HUD urged to work with Fed on disclosures

More than 240 of members of the House of Representatives have signed a letter urging federal regulators to withdraw their proposed changes to the Real Estate Settlement Procedures Act (RESPA) and work with the Federal Reserve on simplified disclosure forms instead. The Department of Housing and Urban Development maintains its proposed changes to RESPA would save consumers $8.35 billion a year by helping them shop for the best deal on a loan, title insurance and other settlement services. HUD says it's trying to protect consumers from overcharges and to promote competition between mortgage lenders and settlement services providers. But the real estate industry has steadfastly opposed HUD’s proposed changes to RESPA, saying they would lead to industry consolidation that would ultimately harm consumers. The Fed has also urged HUD to work with it to develop a single form that complies with both RESPA and the Truth In Lending Act (TILA), to protect consumers from "info...