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
Webinar with Phil Schulman on Busby RESPA Case
Expert Phil Schulman addresses the recent ruling in the Busby RESPA case and provides guidance to members on what it means for their business. Please note the audio portion of the webinar does not begin until the 7:30 minute mark
View recorded webinar
Schulman Explores RESPA Final Rule at Mid-Year
Expert Phil Schulman drew an over-capacity crowd to his session on HUD’s new RESPA final rule. Handouts from the session appear below.
Session slides>
New HUD-1 form>
New GFE form>
NAR Comments on HUD's "Required Use" Provision
(April 8, 2009) NAR submitted the following comment letter to HUD on the definition of "required use."
Read the letter (PDF: 147K)
BEWARE OF FEES FOR MODIFICATION REFERRALS: Both Federal and State Law Could Restrict Them
(March 18, 2009) With record numbers of homeowners facing foreclosure, more and more mortgage lenders are using loan modifications as a method to keep consumers in their homes. At the same time, credit service organizations are expanding their focus from credit repair services that help consumers obtain financing to services designed to assist consumers in negotiating loan modifications and new loan work-out companies seem to pop up every day. As a result, these entities are looking to real estate professionals as a source for customers who may be in danger of defaulting on their mortgage loans.
Read article
Webinar on Final RESPA Rule
(February 5, 2009) To clarify some of the confusion surrounding NAR's position, and other industry stakeholders views on the final RESPA rule, NAR hosted a web conference featuring RESPA attorney Phil Schulman. During this conference, Mr. Schulman discussed the main aspects of the new RESPA rule and where key industry stakeholders stand.
Click here to watch presentation
View powerpoint presentation only
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)
