ComplianceMadeSi
9 Posts |
 Posted - 06/14/2008 : 11:41:45 AM
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Now that the comment period had ended regarding the new proposed RESPA rule, I will try to keep this forum up to date on the latest news.
ABA Urges HUD to Withdraw RESPA Proposal
The American Bankers Assoc. yesterday urged the Department of Housing and Urban Development to withdraw its proposed rule to amend the Real Estate Settlement Procedures Act's disclosure requirements for mortgage settlement costs. "The rule is badly flawed, runs counter to a number of legal and regulatory requirements, and will harm, rather than help, consumers," ABA said in a comment letter. The association added that HUD should re-propose the rule only after evaluating public comments, coordinating it with the soon-to-be-amended Truth in Lending Act and Home Ownership and Equity Protection Act rules, and then giving it further consideration.
While ABA shares HUD's goal of protecting consumers from unnecessarily high settlement costs, the proposal appears to go well beyond HUD's statutory authority because it would require disclosures that would overlap or conflict with those already required under TILA and -- potentially -- several other acts the Federal Reserve administers. "[W]e believe the [proposed] rule is likely to increase costs for all consumers and cause delays in the closing process without a meaningful corresponding benefit," ABA said.
Here is the link to the entire letter: http://www.aba.com/aba/documents/News/RESPAletter61208.pdf
George Marentis
Compliance Made Simple, LLC
www.compliancemadesimple.org
compliancemadesimple@yahoo.com
303.859.8550
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