RUMOR: RESPA REFORM BILL TO BE DELAYED SIX MONTHS: HUD DENIES DELAY
The Real Estate Settlement Procedures Act "RESPA" regulations set to take place on January 1, 2010 has purportedly been delayed by HUD for six months. We are now waiting for an official announcement to take place by HUD to officially confirm the six month delay which should make the new implementation date on or around July 1, 2010.
We don't know what precipitated this possible delay by HUD but the real estate industry has stepped up their criticisms on the new rule, including a recent letter sent to HUD by numerous trade organizations, issues with the new Truth In Lending Act form "TILA" integration, and other federal enforcement agencies concerns about the transparency of the new HUD-1 have forced HUD to re-evaluate parts of the new rule. Of course one of the other problems is that many in the real estate industry are still very much unaware or uneducated on the new RESPA Rule.
UPDATED at 10:39 PM:
Assistant Secretary of Housing David Stevens informed me that there will not be a delay in the implementation of the Jan. 1, 2010 RESPA rule. The information we received came from numerous credible sources in Washington, D.C. but it appears that the information regarding the delay according to HUD will not occur.
UPDATE #2 AT 11:53 ON THURSDAY:
Kelly McCarel atRESPA NEWS.COM is now confirming "that HUD has been holding private meetings about the possibility of a delay" according to their sources.
However, Assistant Secretary of Housing Dave Stevens stated to us in an email at 3:00AM this morning that "There have been all sorts of discussions on readiness but a delay on implementation has not been one of them. The industry needs to be prepared for January 1st."
Stay tuned.............
Latest Update November 13, 2009
HUD Announced a 120 day (4 month) delay in HUD Enforcement of the new rule or as HUD calls it a "Restraint in Enforcement."
Comments
excellent! love the delay.
Posted by: Mark Goldstein | October 28, 2009 4:38 PM
This information is not accurate. At Community Mortgage Lenders of America, we have been in close contact with HUD about RESPA implementation. We spoke to HUD tonight and confirmed that there is no delay.
Posted by: Howard Glaser | October 28, 2009 7:41 PM
Full speed ahead to the trainwreck!
Posted by: MessengerBoy | October 29, 2009 9:49 AM
So it looks like they are still going through with this according to the final post Not real sure why they insist this will help consumers. Only groups that it will help are the big guys like Wells and BofA. I guess this administration and HUD hate small business.
Posted by: Kate Crawford | October 29, 2009 9:56 AM
I am the spouse of a HUD employee and this blog's information is very credible. Her co-workers are running rampant saying the rule will be delayed. The high ups pushing this cock-eyed reform know this is a bad rule. Why can't the high-ups just admit the rule is bad and delay the thing?
Posted by: R.J | October 29, 2009 2:02 PM
The new rule is quite possibly the worst thing to come out of HUD in 40 years. This rule is takes away consumer rights.
Posted by: Phil Pryor | October 29, 2009 10:23 PM
Today is Nov. 5. What is the latest word on implementation? thanks
Marx says:
Spoke to Ivy Jackson last week in Chicago at the RESPRO meeting and HUD is standing firm on its implementation date. Expect even more guidance to come from HUD over the next 60 days on the GFE and HUD-1. Rumors still abuzz about a delay in HUD enforcement over the new rules but even if they delay HUD enforcement for let's say 90 or 120 days it does not impede civil litigation on the new RESPA rule.
Posted by: Marie Spodek | November 5, 2009 12:15 PM
Good job breaking this story Mr. Sterbcow. You have some pretty good sources because no one saw the delay coming.
Posted by: Robert R | November 16, 2009 9:39 AM