BrokerageIndustry News

Builders get reprieve on incentives

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

Federal housing regulators have agreed to delay for 90 days implementation of a rule change that would bar home builders from offering consumers incentives when they agree to use builders' affiliated mortgage and title insurance companies. The new rule -- one of many changes to the Real Estate Settlement Procedures Act (RESPA) being phased in by the end of the year -- was set to take effect Jan. 16. The National Association of Home Builders sued the Department of Housing and Urban Development on Dec. 22, saying the rule change arbitrarily applies to affiliated businesses operated by home builders. Affiliated businesses formed by settlement services providers like title insurers would still be allowed to offer discounts and settlement services packages (see story). NAHB had sought a preliminary injunction against implementation of the rule, but a hearing scheduled for Jan. 9 was canceled after HUD voluntarily agreed to delay its implementation for 90 days. A HUD spokesma...