BrokerageIndustry News

HUD: Consumers will shop for loans

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Consumers will be less likely to accept overpriced loans, title insurance and other services -- including those offered by businesses affiliated with real estate brokerages and builders -- once new loan disclosure forms and settlement procedures are fully in place at the end of next year. That's according to a lengthy review by the Department of Housing and Urban Development of its proposed rule changes governing enforcement of the Real Estate Settlement Procedures Act. In publishing a final rule in Monday's Federal Register, HUD detailed numerous "significant" changes to its proposed overhaul of RESPA in response to feedback from industry and consumer groups. When they announced the new rule last week, HUD officials emphasized concessions they made to the real estate industry trade groups, who were highly critical of the rule changes as first proposed in March. Industry critics said HUD has overestimated the extent to which consumers will comparison shop, and under...