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RESPA: HUD OFFICIALLY DELAYS "HUD ENFORCEMENT" OF NEW RESPA REFORM RULE

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" »

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."

FEDERAL RESERVE BOARD PROPOSES MANDATORY FLAT FEE ON ON CLOSED-END MORTGAGES AND HELOCs

The Federal Reserve Board is proposing the most significant change to Regulation Z of the Truth In Lending Act that we have seen since the law was introduced. The change severely limits compensation that banks, mortgage lenders, and mortgage brokers can earn in connection with a closed-end mortgage and home equity line of credit (HELOC). The proposal essentially bans yield spread premiums (YSPs), service release premiums (SRPs), origination percentage fee, and gives the FED control over all loan compensation issues.

Mike Anderson (President of Essential Mortgage, Louisiana Mortgage Lenders Association Past President, and the National Association of Mortgage Brokers Co-Chair of Government Affairs) testified before the Federal Reserve Board today on this issue. To see Mike Anderson's testimony today please click here.

Continue reading "FEDERAL RESERVE BOARD PROPOSES MANDATORY FLAT FEE ON ON CLOSED-END MORTGAGES AND HELOCs" »

Posted by Marx Sterbcow | Permalink | Email This Post | Comments (0)

Posted In: TRUTH IN LENDING ACT

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