RESPA
In 1974, Congress enacted the Real Estate Settlement Procedures Act (RESPA) to address problems in the real estate settlement process including:
- 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
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)
