RESPA
- abusive practices that increased costs to homebuyers
- lack of understanding about the settlement process and its costs
RESPA's purpose is twofold:
- to provide consumers with information about the real estate mortgage transaction and the costs associated with it
- to prohibit certain practices, such as referral fees between settlement service providers, that result in higher costs and reduced quality to consumers
WHAT'S NEW
NAR Supports Final RESPA Reform
(December 16, 2008) After five months and 12,000 public comments on the proposed rule to reform RESPA, HUD published its final RESPA rule on Monday, November 17, 2008. NAR had opposed the proposed RESPA rule on grounds that it was anti-competitive and failed to achieve its stated goal of simplifying the process for consumers. However, in the final rule, HUD makes a number of concessions and changes to the rule that NAR urged them to consider. While the final rule is not perfect, HUD largely addressed NAR’s concerns and produced a final rule that should ultimately benefit consumers. To read a summary of HUD’s final RESPA rule, as well as NAR’s perspective on HUD's RESPA changes, please click here.
HUD Issues Final RESPA Rule
(Nov. 17, 2008) On November 13, 2008 HUD Secretary Preston announced the release of HUD's new RESPA final rule. HUD's new final RESPA rule was officially published today in the Federal Register. There will be a one year implementation period with mandatory compliance beginning January 1, 2010. In response to comments made by NAR and other industry and consumer groups, HUD made significant changes to the proposed rule published last March.
Based upon an initial reading of the 341-page rule, the changes indicate that HUD listened carefully to NAR's comments and made revisions to address the concerns of both industry and consumers. HUD received nearly 12,000 comment letters, with 6,000 coming from NAR members. NAR will continue its review to determine whether HUD adequately addressed NAR concerns.
NAR's Initial Analysis of Rule
Read more (HUD Website)
