The United State Department of Housing and Urban Development (HUD) released their 341 page final RESPA rule today.
I will provide more analysis on this rule later but I wouldn't get too excited or upset about it yet as this rule appears to have more legal and congressional authority issues than you can imagine.
The United States Housing and Urban Development's RESPA Department unleashed their new HUD-1 Settlement Statement today. The new HUD-1 doesn't change too much in format on the 1st page but its the 2nd and 3rd page that does.
Sections 100, 200, 400, & 500 don't have any changes from the previous HUD-1.
Sections 300 & 600 do break down "Gross amount due" and "Less amounts paid". I don't foresee these two sections as controversial.
Section 700 of the HUD was not modified or changed.
Sections 800, 900, and 1000 will be discussed later in conjunction with the GFE and the 3rd page of the new HUD-1. Its clear from page 3 of the new settlement statement that HUD has enacted price controls of no more than a 10% deviation. This will be extremely controversial and will likely cause most of the trade associations to file suit against HUD for overstepping its congressional authority by enacting price controls.
Continue reading " RESPA REFORM RULE'S NEW HUD-1 SETTLEMENT STATEMENT INITIAL ANALYSIS " »
Federal Housing Commissioner/Assistant Secretary for HUD Brian Montgomery, Deputy Assistant Secretary for Regulation Gary Cunningham, and Director of RESPA Ivy Jackson will appear before the U.S. House Financial Services Committee today, November 12, 2008 at 2:00 PM EST to discuss HUD's new final RESPA rule.
The actual rule is still not available to the public but Housing and Urban Development (HUD) expects the rule to be published in the Federal Register in the coming days.
Continue reading " RESPA REFORM CONGRESSIONAL HEARING SET FOR NOVEMBER 12, 2008 AT 2:00 PM EST " »
RESPANEWS.COM is reporting that The Office of Management and Budget (OMB) has concluded its review of the proposed RESPA REFORM rule that The United States Housing and Urban Development (HUD) has been pushing for.
The proposed 2008 RESPA Reform rule seeks to give HUD the authority to impose civil money penalties for violations of certain RESPA sections such as Section 4 (HUD-1); Section 5 (Good Faith Estimate "GFE" and Special Information Booklet); Section 6 (Servicing); Section 8 (Referral Fee and Fee Spliting prohibitions); Section 9 (Required Use); and Section 10 (Escrow Accounts).
The public proposal gives HUD and State Regulators authority to enforce injunctive and equitable relief , expands the statute of limitations for government and private actions against those who violate RESPA, and requires the delivery of the HUD-1 Settlement Statement to the borrower at least three days prior to closing.
Although it is not official it does appear that the highly controversial Closing Script proposal has been yanked from the rule.
