Industry NewsMortgage

HUD says no RESPA reprieve

Lenders want more time, clarification of new disclosure rules

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Federal regulators say they won't be swayed by a last-ditch effort by industry groups representing lenders to postpone Jan. 1 implementation of standardized mortgage loan disclosure forms and procedures that are intended to help consumers comparison shop.The Department of Housing and Urban Development put forward the proposed changes to the Real Estate Settlement Procedures Act (RESPA) in March 2008 and issued a final rule in November after a public comment period that was extended at the industry's request. The final rule, which has withstood a legal challenge by the National Association of Mortgage Brokers, includes a new standardized good faith estimate (GFE) and HUD-1 settlement statement, which restrict changes to estimated loan origination and settlement services charges (see story).All told, the industry will have had 14 months to prepare for the rule changes by the time they take effect next year, Federal Housing Commissioner David Stevens said Thursday in a letter to industry ...