The Washington Report

In This Issue
Business Report
HUD Takes Next Step On RESPA Website Complaint Questionnaire

Conventional Residential Lending Report
OFHEO Eases Capital Requirements for Fannie Mae and Freddie Mac; NAR Responds

HUD Takes Next Step On RESPA Website Complaint Questionnaire

On March 18, 2008 the Federal Register published the Department of Housing and Urban Development's proposed Website Complaint Questionnaire which HUD submitted to the Office of Management and Budget (OMB) for approval as required by the Paperwork Reduction Act. The Federal Register previously published a Notice of Proposed Information Collection on the Website Complaint Questionnaire on November 7, 2006.

The Real Estate Settlement Procedures Act of 1974 (RESPA), 12 U.S.C. 2601 et seq., and the implementing Regulation, codified at 24 CFR 3500, insure that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process and are protected from unnecessarily high settlement charges caused by certain abusive practices. The RESPA Website Complaint Questionnaire will provide a common website for consumers and settlement service providers to assist in the enforcement of RESPA, and will create efficiencies in processing complaints.

HUD is soliciting comments from members of the public and affecting agencies concerning the proposed collection of information to:

Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
Evaluate the accuracy of the agency's estimate of the burden of the proposed collection of information;
Enhance the quality, utility, and clarity of the information to be collected; and
Minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses.

Comments are due by April 17, 2008.

Federal Register

Scott Rinn 202-383-7508, Marcia Salkin 202-383-1092

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OFHEO Eases Capital Requirements for Fannie Mae and Freddie Mac; NAR Responds

On March 19, 2008, the Office of Federal Housing Enterprise Oversight (OFHEO), Fannie Mae, and Freddie Mac announced changes in the capital requirements for the two government sponsored enterprises (GSEs). OFHEO eased the capital surcharge from 30 percent to 20 percent, and the GSEs each agreed to begin to raise more capital. The changes will provide up to $200 billion of additional liquidity to the mortgage-backed securities market. OFHEO and the GSEs also reaffirmed their support for GSE reform legislation to create a stronger regulator.

On the day of the announcement, NAR's CEO, Dale Stinton, sent a letter to OFHEO Director James Lockhart thanking him for easing the capital requirements to increase the role of the GSEs, especially in connection with the new jumbo conforming loan limits for high cost areas and refinancing subprime mortgages. The letter, however, also expresses concerns about (1) the tighter underwriting and higher fees required for jumbo conforming mortgages, (2) the GSEs' policies that reduce the otherwise applicable maximum loan-to-value ratio for a loan by five percentage points for homes in declining markets (the effect is to increase the minimum down payment), and (3) the negative impact of imposing higher fees when the housing market is least able to handle them. Finally, the letter urges the Director to act promptly to make further reductions to the capital requirements as soon as possible.

OFHEO, Fannie Mae, and Freddie Mac Announcement

NAR letter to OFHEO

Jeff Lischer 202-383-1117, Marcia Salkin 202-383-1092

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Last Updated: 03/21/2008 Bira de Aquino