Four huge mortgage guideline changes
HUD gives mortgage industry more time to respond to RESPA proposalMortgagePress.comHUD, comment period, RESPA reform, Citing pressures from legislators and the mortgage industry, HUD concedes to allow more time to respond to its complicated proposal The U.S. Department of Housing and Urban Development (HUD) has announced an extension on the public comment period on the Bush administration's proposed reforms to the Real Estate Settlement Procedures Act (RESPA). The comment period for the Department's proposed rule to simplify and improve the process of obtaining mortgages and reducing settlement costs under RESPA will be extended 30 days, from May 13, 2008 until June 12, 2008. "The National Association of Mortgage Brokers appreciates HUD's extension of time to comment on the proposed RESPA rule," said NAMB President George Hanzimanolis, CRMS. "ince 1992, NAMB, HUD, the Federal Trade Commission and academics have been studying the unfair and confusing disclosure requirements HUD placed on Mortgage Brokers; the extra time will allow our sister trade groups to determine the impact on their business interests." Over the past few years, HUD has aggressively reached out to interested consumer and industry groups to accept and give careful consideration to their thoughtful views and proposals to reform RESPA. "This critical rule will improve the complicated home buying process and save families money at the settlement table," said Deputy Secretary Roy A. Bernardi. "In light of Congressional and industry requests to extend the comment period for the rule, and our desire to develop the best possible rule, we are allowing additional time. However, we remain committed to finalizing a rule before the end of the administration." Rep. Spencer Bachus, ranking member on the House Financial Services Committee, said, "HUD's decision to give the public 30 additional days to comment on a proposed federal rule to simplify the settlement process for homebuyers is an important, constructive and welcomed step. Last month, 11 Republican committee members joined me in sending a letter to HUD asking that the public comment period for a proposed rule reforming RESPA regulations be extended. We made the point that an extension would help to ensure that the final rule accomplishes HUD's goals while eliminating potential misunderstanding or confusion for all stakeholders. HUD Deputy Secretary Bernardi and his team should be commended for their responsiveness." Comments can be made on the proposed RESPA rule by clicking here.