RESPA reform

OMB completes review

Matt_Carter — Tue, 11 Nov 2008 10:00:04 -0800

Looks like OMB completed its review of HUD’s proposed RESPA rule changes on Nov. 7, so HUD's got a shot at making that Nov. 20 deadline for making changes stick.There are reports that HUD pulled the requirement for a closing script from the final rule.

RESPA reform

HUD shares Toll's RESPA concerns

Matt_Carter — Mon, 10 Nov 2008 17:37:38 -0800

"Real estate marketing agreements look a lot like captive reinsurance agreements which looked a lot like sham affiliated business arrangements." --Erin Toll, director of the Colorado Division of Real Estate, speaking at a RESPRO seminar in New Orleans. more...

RESPA reform

Everyone hates RESPA proposal?

Matt_Carter — Mon, 10 Nov 2008 10:57:48 -0800

"There’s almost universal agreement on the new RESPA rules that the U.S. Department of Housing and Urban Development could issue as soon as next week—everyone hates them."

So says Mariwyn Evans, writing for NAR's Realtor Magazine. Well, of course it's a little more complicated than that. more...

RESPA reform

Report puts RESPA deadline at Nov. 20

Matt_Carter — Mon, 03 Nov 2008 15:41:37 -0800

The Bush administration is looking at making as many as 90 regulatory changes before the president leaves office, The Washington Post reports.

HUD's proposed RESPA rule is one of nine regulatory changes considered economically significant (with an impact that exceeds $100 million a year) and therefore subject to 60-day Congressional review. more...

RESPA reform

OMB has questions

Matt_Carter — Fri, 19 Sep 2008 17:14:10 -0700

HUD, industry have answers? Meetings on final RESPA rule took place Wednesday and Thursday.

RESPA reform

White House gets on RESPA bandwagon

Matt_Carter — Thu, 18 Sep 2008 16:37:42 -0700

Do you suppose this is the first time in history a White House press secretary has ever uttered the word "RESPA?"

From Inman News opinion piece:

White House Press Secretary Dana Perino, asked by a reporter Wednesday if the Bush administration's "deregulatory approach" helped create the housing and financial market meltdown, deflected blame to Congress. more...

RESPA reform

HUD: Attempts to stall RESPA "reprehensible"

Matt_Carter — Wed, 17 Sep 2008 14:24:29 -0700

From speech today by HUD Secretary Steve Preston: more...

RESPA reform

House subcommittee holding RESPA hearing

Matt_Carter — Wed, 10 Sep 2008 09:21:40 -0700

North Carolina Democrat Mel Watt has scheduled a hearing on HUD's proposed RESPA rule for Tuesday Sept. 16 to "examine the impacts of HUD’s proposed RESPA reforms on consumers and other stakeholders in the mortgage settlement process" (see press release below).

Watt chairs the House Subcommittee on Oversight and Investigations, which is under the umbrella of Barney Frank's Financial Services Committee. more...

RESPA reform

ENTITLE - Under the guise of being pro-consumer, these folks charge as much or more than major competitors!

Diane Cipa — Thu, 04 Sep 2008 21:49:59 -0700

Here's the link to Radical. http://radicaltitletalk.blogspot.com

At this point, I'm practically speechless. I'm all for snazzy marketing and I think their web site is GREAT, but don't mislead the consumer! This is exactly what is wrong with on-line title quotes. So much of the cost consumers might pay is NOT in the title premium. We so need standardization in pricing comparison. I'm anxious to see what form the GFE will take in the latest RESPA proposal.

RESPA reform

Ohio AfBA critic

Matt_Carter — Mon, 25 Aug 2008 11:41:10 -0700

The Ohio Association of Independent Title Agents is out to force the state "to change the way it does title insurance business, whether from the top down or from the bottom up." That, according to the first post on the group's blog, a diatribe against AfBAs written by Robert Holman, a lawyer and state-approved provider of continuing education for mortgage brokers. more...

RESPA reform

Talking RESPA to consumers

Matt_Carter — Fri, 22 Aug 2008 10:11:04 -0700

In a lenghty post on her ActiveRain blog, Brentwood, Tenn.-based Countrywide Home Loans originator Donna Mitchell warns consumers and real estate pros about "preferred" lenders. The post touches on many other pitfalls HUD says it's trying to address in its RESPA reform proposal). A few highlights: more...

RESPA reform

Here's $50 -- try this credit repair company I found(ed)

Matt_Carter — Tue, 19 Aug 2008 09:47:49 -0700

Terry Ross, a "Certified Mortgage Planning Specialist" in Tomball, Texas, wants readers of his Active Rain blog to know he's "finally found" a credit repair company that not only "guarantees results" but will pay referring realtors and loan officers $50. more...

RESPA reform

California looking to tighten AfBA regs

Matt_Carter — Mon, 11 Aug 2008 10:42:16 -0700

California regulators say they're going to start enforcing existing law on AfBAs, limiting title insurers to generating no more than 50 percent of their business through joint ventures. An analysis by the Department of Insurance estimates tightened regulations could cost the industry $732 million in after tax income (profits) and force "one or more domestic insurers" and "several underwritten title companies" out of business. See story.

RESPA reform

Our leads are your leads

Matt_Carter — Tue, 29 Jul 2008 15:06:54 -0700

Here's a title and settlement services provider that's found a creative way to get business: build a network of lead generation Web sites and give -- oops, I mean sell -- the leads to loan originators. more...

RESPA reform

HUD is incapable of developing consumer useful GFE

mecauley — Mon, 21 Jul 2008 16:16:50 -0700

HUD is too politically motivated to serve Bankers and Mortgage Bankers at the expense of the consumer. It was HUD that certified in the November 2, 1992 that the YSP disclosure "...would not have anti-competitive discriminatory aspects of the rule with regard to small entities nor are there any unusual procedures that would need to be complied with by small entities." more...

RESPA reform

Dear Secretary Preston: Please chuck RESPA reform

Matt_Carter — Thu, 17 Jul 2008 13:21:14 -0700

Reps. Ruben Hinojosa Judy Biggert are teaming up again and asking colleagues to sign a letter to HUD Secretary Steve Preston insisting that HUD basically throw out its entire proposed RESPA rule change and start over, working with the Federal Reserve, on new disclosure forms (and, implicitly, drop packaging incentives altogether). more...

RESPA reform

There will be a quiz

Matt_Carter — Thu, 10 Jul 2008 17:58:01 -0700

"Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." -- Louis Brandeis.

That quote helps HUD researcher Mark Shroder kick off a paper analyzing RESPA "as a regulatory strategy relying on federally mandated information disclosure."

In other words, if you arm the consumer with enough information, can you encourage companies to behave without spending a ton on enforcement? more...

RESPA reform

'Mad Chedda' for commercial RE brokers

Matt_Carter — Thu, 03 Jul 2008 12:43:13 -0700

Here's an interesting referral fee chart posted by a commercial loan broker that came my way via a Google alert. Writing on his ActiveRain blog, Charles Hennebeul of American Cash Solutions Inc. more...

RESPA reform

NAR study: HUD underestimates costs

Matt_Carter — Thu, 05 Jun 2008 16:11:11 -0700

The cost of preparing HUD's proposed Good Faith Estimate will add up to $413 to the cost of obtaining a loan -- considerably more than the $181 claimed by HUD -- according to a study prepared for the National Assocation of Realtors.

The study, "The Estimated Costs of HUD’s Proposed RESPA Regulations," is authored by economist Ann Schnare. more...

RESPA reform

ALTA: 2002 proposal got 25 times more comments

Matt_Carter — Thu, 05 Jun 2008 14:10:49 -0700

With the June 12 deadline for comments looming, ALTA is reminding members to get their two cents in. Only 1,500 comments have been filed so far -- compared to 40,000 in 2002 -- and the group says "We need to have a much better response if we hope to affect the final rule."

RESPA reform

New study on closing costs

Matt_Carter — Fri, 30 May 2008 13:38:23 -0700

HUD's touting a study that suggests complex loans (with features like yield-spread premiums, discount points and seller contributions to closing costs) carry higher costs, saying it justifies the simplified disclosures proposed under RESPA.

Study found some interesting variations in price according to education, race, region that suggest "lenders and mortgage brokers make their most favorable offers to borrowers that they consider knowledgeable about competing alternatives." more...

RESPA reform

RESPA comments - finally submitted ...whew!

Diane Cipa — Mon, 19 May 2008 19:03:39 -0700

Here they are:

May 19, 2008

Regulations Division
Office of General Counsel
Department of Housing and Urban Development
451 Seventh St., SW., Room 10276
Washington, D.C. 20410-0001

Re: Real Estate Settlement Procedures Act (RESPA):
Proposed Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs, 08-01015 [FR-5180-P-01; RIN2502-AI61]

To Our Friends at HUD: more...

RESPA reform

Small business impacts?

Matt_Carter — Mon, 19 May 2008 09:31:23 -0700

The House Small Business Committee will hold a hearing on "RESPA and its Impact on Small Business" 10 a.m. Thursday May 22.

Committee Chairwoman Nydia Velázquez, D-N.Y., was not a fan of HUD's last RESPA reform proposal.

From her March 11, 2003 statement: more...

RESPA reform

Why do progressive Dems support slowdown?

Matt_Carter — Thu, 08 May 2008 11:00:06 -0700

Looking at who signed the Hinojosa/Biggert letter, it's interesting to see the breakdown of 84 Democrats to 64 Republicans (and also that the total number of signatures -- 148-- falls short of the 226 gathered in 2004).

I suppose Republicans are a little reluctant to go against what is, after all, a Bush administration initiative. But then again, that was the case in 2004, as well. more...

RESPA reform

Comment period extended to June 12

Matt_Carter — Wed, 07 May 2008 13:54:43 -0700

Looks like HUD split the difference, extending comment period for 30 days sted of the 60 industry was looking for...

Rep. Hinojosa says 147 members of Congres co-signed his request to HUD for an extension, and he's not giving up on another: more...

RESPA reform

What else is there to say (that can't be said in 60 days)?

Matt_Carter — Mon, 28 Apr 2008 18:16:21 -0700

It was probably no surprise to most members of this group that trade associations representing realtors, lenders, title insurers and builders would want to push the timeline for RESPA reform back by 60 days -- or perhaps into oblivion (see previous discussion). more...

RESPA reform

Extend public comment period?

Matt_Carter — Mon, 21 Apr 2008 14:11:25 -0700

It's official -- industry groups are asking HUD to double the public comment period to 120 days. Representatives Ruben Hinojosa, D-Texas, and Judy Biggert, R-Ill., who led the charge in 2004, are circulating a "dear colleague" letter to build support for extending the public comment period. See Inman Blog.

Here's the text of the Hinojosa/Biggert letter:

Dear Colleague: more...

RESPA reform

Will consumers shop for settlement services?

Matt_Carter — Tue, 15 Apr 2008 12:18:02 -0700

Be interested to hear the group's thoughts on whether RESPA reform will spawn Web sites that allow consumers (and real estate and mortgage pros) to shop for settlement services.

See today's story on Fairclosingcosts.com's plan to launch next month.

RESPA reform

Should a real estate agent making a referral to a third party provider have an obligation to give an accurate fee quote?

Diane Cipa — Sun, 06 Apr 2008 02:23:09 -0700

Under the proposed GFE rule, a loan originator may relieve themselves of the burden of third party fee quote accuracy by NOT giving the consumer the name of providers. The loan originator can suggest that the consumer shop for those services themselves. In this case, the loan originator must still provide a quote for these third party services, however, there is no tolerance burden for accuracy. more...

RESPA reform

So will banks have to disclose SRP?

Matt_Carter — Thu, 03 Apr 2008 09:24:26 -0700

Note: This topic was originally submitted as a comment on an Inman News story, HUD rolls out new RESPA reform proposal. more...

RESPA reform

Are you going to submit a comment to HUD or not?

Howard Lax — Thu, 03 Apr 2008 06:41:35 -0700

Why are you writing your comments in this forum? The forum for submitting comments to HUD is Regulations.gov . HUD does not read comments in this forum. Submit your comments to HUD at: (Click here) .

RESPA reform

When do you see the GFE?

Matt_Carter — Wed, 02 Apr 2008 14:05:30 -0700

This topic was originally submitted as a comment by Kathy Glor on April 2, 2008 - 1:15pm.

Greetings to all, more...

RESPA reform

Put RE agents commissions, fees on GFE?

Matt_Carter — Wed, 02 Apr 2008 08:25:12 -0700

Note: this topic was originally submitted as a comment on another post by Diane Cipa on April 2, 2008 - 7:17am.

I have a question for real estate agents.

The GFE has no place for buyer paid commissions, brokerage/administrative fees, etc.

I know these fees are disclosed to the consumer in buyer agency agreements, but how do you suggest we get them into a GFE summary so the buyer is reasonably prepared for cash to close? more...

RESPA reform

RESPA links

Matt_Carter — Tue, 01 Apr 2008 15:39:33 -0700

Here's a list of links for those interested in learning more about RESPA reform. Feel free to add your own in the comments section.

Getting started:

HUD's RESPA home page.

Read HUD's proposed RESPA rule change as published in the Federal Register.

Download a copy of the proposed Good Faith Estimate (GFE). more...

RESPA reform

Will HUD Secretary Jackson's departure stall RESPA reform?

Matt_Carter — Mon, 31 Mar 2008 17:35:51 -0700

Even before HUD Secretary Alphonso Jackson announced his departure (see Inman News story), K&L Gates attorneys Phillip Schulman and Holly Spencer were expressing their doubts that HUD will be able to see the latest RESPA rule changes through. more...

RESPA reform

Packaging incentives: tolerances

Matt_Carter — Mon, 31 Mar 2008 17:28:47 -0700

HUD wants to introduce tolerance standards that would lock in some of the estimated charges presented to borrowers before they reach the closing table, such as loan origination fees. Increases of more than 10 percent would be prohibited on other charges, including settlement services like title insurance when borrowers use services that are selected or identified for them to use (see page 3 of the proposed Good Faith Estimate). more...

RESPA reform

Packaging incentives: cost averaging

Matt_Carter — Mon, 31 Mar 2008 17:25:22 -0700

To reduce the record-keeping burden for settlement services providers, HUD would allow average cost pricing for services like credit reports and courier services. more...

RESPA reform

Packaging incentives: negotiated discounts

Matt_Carter — Mon, 31 Mar 2008 17:20:45 -0700

HUD proposes to allow loan originators and third-party settlement service providers to negotiate volume-based discounts, as long as savings are passed on to borrowers.

Sue Johnson, executive director of the Real Estate Services Providers Council Inc. (RESPRO) — a trade group representing affiliated businesses — says HUD would also ban companies from offering incentives for purchases of affiliated services, unless they are offered as part of a package of services, and the overall price for the package is less than if the services were purchased individually. more...

RESPA reform