Industry NewsMortgage

Bid to delay new RESPA rules fails

Agents, brokers exempted from consumer agency's oversight

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A bill that would create a Consumer Financial Protection Agency (CFPA) has emerged from a key committee vote without an amendment that would have delayed implementation of new loan mortgage disclosure forms and closing procedures scheduled to go into effect Jan. 1 under the Real Estate Settlement Procedures Act (RESPA). In the process of "marking up" and passing HR 3126 in a 39-29 vote, the House Financial Services Committee did sign off on another amendment that would remove much of the CFPA's oversight authority over the title insurance industry and mortgage insurers. The bill also included previous draft language limiting the CFPA's authority over real estate brokers and agents.The amendment to delay RESPA implementation, introduced by Reps. Judy Biggert, R-Ill., and Ruben Hinojosa, D-Texas, was withdrawn without a vote.The amendment would have required the Secretary of Housing and Urban Development (HUD) to delay implementation of measures intended to promote comparison ...