Posted On:
November 13, 2008
RESPA REFORM FINAL RULE "RULE TO SIMPLIFY AND IMPROVE THE PROCESS OF OBTAINING MORTGAGES AND REDUCE CONSUMER SETTLEMENT COSTS"
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.
Comments
I work with a bank that has a joint venture with a homebuilder in the Southern California and Nevada market. Our bank is one of the few that abided by fair and responsible lending practices and now it sounds like the incentives offered by the builder to use our services via their joint venture, may no longer be allowable. Can you help me to understand if the new RESPA law will affect joint venture builder/bank affiliated business practices?
Posted by: Jason Tatman | December 10, 2008 7:57 PM
Jason,
Please see the Dec. 20th entry on the new Sec. 9 requirements that go into effect in Jan. of 2009.
Posted by: Marx Sterbcow | December 22, 2008 1:33 PM
Pertaining to the Good Faith and a Broker or Lender disclosing thier compensation, are there any provisions about "junk fees" or better yet the hidden ones, where the Lender charges the Borrower $400 for an Appraisal yet only pays the Appraiser $225 and they keep the differance, just curious as this seems unfair to both parties as niether the Appraiser nor Borrower are typically made aware of this tactic.
Posted by: Missy | January 22, 2009 8:30 PM
Missy--
The upcharge has been the subject of litigation across the country. Section 8(b) has been alleged but it has had a very difficult time being litigated. However, some courts have been much more receptive towards the charging of fees where there hasn't been any work at all done. For example charging $200.00 for a courier fee when a courier service wasn't performed.
Posted by: Marx Sterbcow | January 23, 2009 2:59 PM