Industry NewsMortgage

HUD offers leeway with new RESPA rules

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Federal housing regulators say they will "exercise restraint" for the first four months of 2010 in enforcing new regulations governing mortgage loan disclosures and settlement procedures.The new rules, which the Department of Housing and Urban Development (HUD) has put forward under the authority of the Real Estate Settlement Procedures Act (RESPA), include a new good faith estimate (GFE) and HUD-1 settlement statement.In a press release, HUD said the staff of its Mortgagee Review Board (MRB) will exercise restraint in considering RESPA enforcement actions against FHA-approved lenders if they can demonstrate they are making "a good faith effort" to comply with the new requirements.HUD will consider whether the lender has relied on the new RESPA rule and other written guidance issued by the department, and the extent to which they have invested in technology and training to comply with the new rule.HUD is also asking other federal and state enforcement agencies to ex...