RESPA Lawyer Blog

The U.S. Housing and Urban Development's Real Estate Settlement Procedures Act (RESPA) Division released new updated FAQs on Jan. 28, 2010. The new RESPA frequently asked updated question and answers (FAQs) are in bold.

One of the new questions asks whether a loan originator can require the use of its affiliate company for the tax or flood certificate. The updated RESPA guidance says that the loan originator may not require the use of its affiliate for the tax service or flood certificate, but a loan originator may require the use of a non-affiliated provider.

Posted by Marx Sterbcow | Permalink | Email This Post | Comments (1)

Posted In: Affiliated Business Arrangements (AfBA) , Affiliated Business Disclosure Form , Federal Housing Administration FHA , GOOD FAITH ESTIMATE "GFE" , HOME VALUATION CODE OF CONDUCT (HVCC) , HUD-1 Settlement Statement , MORTGAGE DISCLOSURE IMPROVEMENT ACT (MDIA) , REQUIRED USE: Section 9 under the new RESPA rule , RESPA , RESPA LITIGATION , RESPA Reform , RESPA VIOLATIONS

Bookmark:

HUD announced today a delay in "HUD ENFORCEMENT" on the new RESPA Rule which goes into effect on Jan. 1st, 2010 on FHA loans. We need to highlight the fact that only HUD Enforcement of the new RESPA rule has been delayed for 120 days on FHA loans. Civil litigation on the new RESPA Rule goes into effect on Jan. 1st, 2010 and therefore is not delayed.

We applaud HUD for delaying enforcement of the new rule for 4 months it still exposes companies that do not implement the new changes to potential civil litigation issues for not complying with the new rule.

Another RESPA attorney said it best: "Better pin on your badge and strap on your gun looks like HUD will look to the plaintiff's bar to bring the heat in the first 4 months."

Below is a copy of the HUD press release:

Continue reading "RESPA: HUD OFFICIALLY DELAYS "HUD ENFORCEMENT" OF NEW RESPA REFORM RULE" »

Posted by Marx Sterbcow | Permalink | Email This Post | Comments (1)

Posted In: Affiliated Business Disclosure Form , Federal Housing Administration FHA , GOOD FAITH ESTIMATE "GFE" , HOME VALUATION CODE OF CONDUCT (HVCC) , MORTGAGE DISCLOSURE IMPROVEMENT ACT (MDIA) , RESPA , RESPA LITIGATION , RESPA Reform , RESPA VIOLATIONS , TRUTH IN LENDING ACT , YIELD SPREAD PREMIUM "YSP"

Bookmark:

Housing Wire reports that Rep. Gary Miller (R) of California's bill to sunset the HVCC in HR 3126 passed the House Financial Services Committee this week. Several industry associations have quietly confirmed to me that the Home Valuation Code of Conduct (HVCC) will soon be dead. The HVCC under HR 3126 sunsets through the Consumer Financial Protection Agency (CFPA). Many observers believe the sunsetting of the HVCC under the CFPA is instrumental in getting the CFPA passed in congress.

The CFPA bill passed the House Financial Services Committee by a vote of 39 to 29 which was a major victory for Rep. Barney Frank (D). Many observers believe the HVCC will still be quickly phased out even if the CFPA doesn't win as congress is quickly growing weary of the consumer and industry complaints about some Appraisal Management Companies (AMC). Consumers, local taxing bodies, and some in the real estate industry point to increased appraisal fees and unqualified appraisers from distant states appraising local property with unsubstantiated valuations which they believe is further deteriorating the real estate markets across the United States.

Posted by Marx Sterbcow | Permalink | Email This Post | Comments (6)

Posted In: HOME VALUATION CODE OF CONDUCT (HVCC)

Bookmark: