Mortgage Brokers’ Association Sues HUD Over RESPA

On Nov. 10, 2008 - HUD announced it would now require lenders and mortgage brokers to provide consumers with a standard three page Good Faith Estimate (GFE) that discloses key loan terms and closing costs. HUD estimates its new regulation, one that has been hotly contested on both sides, will save consumers about $700 at the closing table.

On December 19, 2008 – The National Association of Mortgage Brokers (NAMB) filed a lawsuit against the U.S. Department of Housing and Urban Development (H... [Read More]

HUD Announces New Good Faith Estimate

WASHINGTON - For the first time in more than 30 years, the U.S. Department of Housing and Urban Development today issued long-anticipated mortgage reforms that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard ... [Read More]

HUD Federal Lawsuit Under RESPA Settled

WASHINGTON - The U.S. Department of Housing and Urban Development today announced that it has settled its federal lawsuit under the Real Estate Settlement Procedures Act (RESPA) against Property I.D. Corporation, a large hazard reporting company in California, Realogy Corporation, Cendant Corporation (now known as Avis Budget Group, Inc.) and Coldwell Banker Residential Brokerage Corporation.

The settlement will conclude with the filing of Consent Orders in the Central Distric... [Read More]

House Majority Urges Withdrawal of RESPA Proposal

By: PAUL JACKSON
August 12, 2008


A hotly-contested move by the U.S. Department of Housing and Urban Development to introduce a number of reforms to the Real Estate Settlement and Procedures Act came under fire this week from more than 240 lawmakers in the House of Representatives. House members signed a letter circulated by Reps. Ruben Hinojosa (D-TX) and Judy Biggert (R-IL) that says HUD’s RESPA reform proposal fails to improve and simplify disclosures of mortgag... [Read More]

HUD: Defunct mortgage broker broke federal law

July 24th, 2008 @ 6:00am




by Associated Press




Defunct mortgage lender First Magnus Financial Corp. broke a federal law by providing incentive payments to mortgage brokers, according to a report.
The U.S. Department of Housing and Urban Development's report issued July 14 said Tucson-based First Magnus violated the Real Estate Settlement Procedures Act by providing volume-based incentives for Federal Housing Administration-insured loans.
HUD found that First Magnus paid $58,571 in i... [Read More]

Respa Defined

Introduction

The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. The purposes of RESPA are

1. to help consumers become better shoppers for settlement services and
   
2. to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Details about RESPA

Corresponding with the above purpos... [Read More]

The RESPA mess: how the Good Faith Estimate has everyone in an uproar

A single sheet of paper has the real estate industry in an uproar.


Every time a potential home buyer applies for a mortgage, he or she receives a document known as the Good Faith Estimate, which spells out the thousands of dollars in fees the buyer is expected to pay when the deal closes.

The problem is the document is confusing, lenders use different versions, and there is plenty of room for abuse, if not outright fraud.

"The unnecessary complexity of mortgages has actually greatly co... [Read More]

NAR to HUD: Simplify RESPA Proposal

The NATIONAL ASSOCIATION OF REALTORS ® has asked the U.S. Department of Housing and Urban Development to amend its proposed changes to the Real Estate Settlement Procedures Act. In a comment letter, NAR expressed concern and dissatisfaction with HUD’s proposed reforms and asked the agency to simplify the procedure and improve the disclosure requirements for mortgage settlement costs.

NAR supports greater transparency in the settlement process and reform that is focused narr... [Read More]

MBA Issues Formal Comments on HUD's RESPA Proposal

WASHINGTON, D.C. (June 11, 2008) – The Mortgage Bankers Association (MBA) today released its formal comments in response to the Department of Housing and Urban Development’s (HUD’s) proposed rule to amend Regulation X, its Real Estate Settlement Procedures Act (RESPA) regulations. In the letter, MBA’s President and CEO Jonathan L. Kempner urged HUD to coordinate its RESPA reform efforts with the Federal Reserve’s work to improve clarity about the terms and cost of credit under the Truth in... [Read More]

Proposed RESPA Rules Threaten Notary Signing Agents

The U.S. Department of Housing and Urban Development (HUD) has proposed rules to clarify the Real Estate Settlement Procedures Act (RESPA), and is now seeking comment from everyone in the industry on how they may be improved. The proposal requires the person who is presiding over a signing appointment — as part of the closing process — to read aloud a prepared script to the borrower and explain it if the person has questions. HUD is proposing the closing script as a way to more thoroughly... [Read More]