FTC staff files comments on proposed amendments to RESPA regulationsMortgagePress.comFTC, comments, RESPA regulations
The Federal Trade Commission (FTC) has announced the filing of
comments to HUD regarding HUD's March 14, 2008 proposed amendments
to RESPA regulations.
In comments prepared by the Bureau of Consumer Protection,
Bureau of Economics, and Office of Policy Planning, the FTC staff
states that some of the proposed modifications could help consumers
better understand and compare loan terms and closing costs.
However, the FTC staff believes that some of them also may have the
unintended consequence of further complicating the already complex
mortgage process. The FTC staff believes consumers would benefit
most if the federal government commenced a comprehensive effort to
reform federal mortgage disclosures.
In addition, FTC staff recommends that HUD reconsider its
proposed expansion of the definition of "required use" of services
that affiliated businesses provide. The FTC staff believes that the
expanded definition could deprive customers of the lower prices
that can result from bundling related services.
For a copy of the FTC comment, click here.