Estimated Costs of HUD'sProposed RESPA Regulations

This report shows that the regulatory impact analysis used by HUD for proposed RESPA reform considerably underestimates the costs of implementing the new requirements by ignoring several key factors.

The report, prepared for The National Association of Realtors® by housing economist Ann Schnare, challenges the impact analysis used by the U.S. Department of Housing and Urban Development in its proposed RESPA reform by finding that HUD "significantly underestimates the costs of implementing the new requirements." 

The report highlights several key influences that HUD failed to address in its breakdown that will considerably impact the structure and costs to consumers and the real estate transaction. It concludes that HUD has either underestimated the number of GFEs that would be issued under the new regulations, or the new regulations will not serve their intended purpose of promoting shopping. Similarly, HUD also underestimated the cost of the proposed closing script.

Read the report (PDF: 100 KB) >