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.
