HUD Issues Final RESPA Rule

11/14/2008

  

 

7900 Westpark Drive, Suite T-309, McLean, VA 22102   (703) 342-5900   www.namb.org

                        November 14, 2008                                                                                                                                       Contact: Jon Otto
 
                       For Immediate Release                                                                                                                                     (703) 342-5851          

 HUD Issues Final RESPA Rule

McLean, VA. – November 14, 2008 – The Nation Association of Mortgage Brokers (NAMB) announced its disappointment today with the U.S. Department of Housing and Urban Development’s (HUD) release of the final Real Estate Settlement & Procedures Act (RESPA) Rule. NAMB believes the ultimate goal of a simplified mortgage process was not accomplished in the rule.

HUD’s RESPA Rule fell short after repeated requests by industry associations and Congress to take a comprehensive approach to RESPA reform by creating a level playing field for consumers. In November 2007, Congress noted the necessity of treating all origination channels equally with the passage of H.R. 3915, the “Mortgage Reform and Anti-Predatory Lending Act of 2007.” In addition, NAMB’s comment letter, submitted to HUD on June 12, 2008, cited two studies conducted by the Federal Trade Commission (FTC) and the Federal Reserve Board (FRB). Each of these studies revealed that different origination channels disclosing differently confuses consumers, and often times causes them to choose a more expensive loan product.

 “HUD, despite taking significant steps to address RESPA reform, failed to recognize the need for a unified, comprehensive approach towards accomplishing a simplified mortgage process,” said NAMB President, Marc Savitt, CRMS.

One area of particular concern is the revision of the Good Faith Estimate (GFE). Increasing this vital consumer disclosure from a one-page, totally itemized advisement, to a three-page, all inclusive, one number disclosure prohibits the consumers’ right to full transparency.

 NAMB will continue to review the 341-page RESPA Rule, new GFE and new HUD-1 form, and provide further comment and analysis in the future.

 For more information on the release of the final RESPA rule, please visit the NAMB Legislative Action Center.

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 The National Association of Mortgage Brokers is the voice of the mortgage broker industry, representing the interests of mortgage brokers and homebuyers since 1973. The Association is committed to promoting the highest degree of professionalism and ethical standards for its members. In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage brokers with professional education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.

 

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NAMB - NAMB

HUD Issues Final RESPA Rule

11/14/2008

  

 

7900 Westpark Drive, Suite T-309, McLean, VA 22102   (703) 342-5900   www.namb.org

                        November 14, 2008                                                                                                                                       Contact: Jon Otto
 
                       For Immediate Release                                                                                                                                     (703) 342-5851          

 HUD Issues Final RESPA Rule

McLean, VA. – November 14, 2008 – The Nation Association of Mortgage Brokers (NAMB) announced its disappointment today with the U.S. Department of Housing and Urban Development’s (HUD) release of the final Real Estate Settlement & Procedures Act (RESPA) Rule. NAMB believes the ultimate goal of a simplified mortgage process was not accomplished in the rule.

HUD’s RESPA Rule fell short after repeated requests by industry associations and Congress to take a comprehensive approach to RESPA reform by creating a level playing field for consumers. In November 2007, Congress noted the necessity of treating all origination channels equally with the passage of H.R. 3915, the “Mortgage Reform and Anti-Predatory Lending Act of 2007.” In addition, NAMB’s comment letter, submitted to HUD on June 12, 2008, cited two studies conducted by the Federal Trade Commission (FTC) and the Federal Reserve Board (FRB). Each of these studies revealed that different origination channels disclosing differently confuses consumers, and often times causes them to choose a more expensive loan product.

 “HUD, despite taking significant steps to address RESPA reform, failed to recognize the need for a unified, comprehensive approach towards accomplishing a simplified mortgage process,” said NAMB President, Marc Savitt, CRMS.

One area of particular concern is the revision of the Good Faith Estimate (GFE). Increasing this vital consumer disclosure from a one-page, totally itemized advisement, to a three-page, all inclusive, one number disclosure prohibits the consumers’ right to full transparency.

 NAMB will continue to review the 341-page RESPA Rule, new GFE and new HUD-1 form, and provide further comment and analysis in the future.

 For more information on the release of the final RESPA rule, please visit the NAMB Legislative Action Center.

###

 The National Association of Mortgage Brokers is the voice of the mortgage broker industry, representing the interests of mortgage brokers and homebuyers since 1973. The Association is committed to promoting the highest degree of professionalism and ethical standards for its members. In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage brokers with professional education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.

 

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