Maverick
Sophomore Member
- Joined
- Feb 19, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Oklahoma
Another thread is exchanging thoughts questioning the legality of AMC fees.
Please visit and thoroughly absorb all information here: http://www.klgates.com/newsstand/Detail.aspx?publication=4395
“HUD would subject the sum of the fees in the second category to a 10% tolerance. While each individual fee may increase or decrease, the sum of the total increases may not exceed 10% at closing.
10% tolerance fees would include: (1) lender-required settlement services where the lender selects the third party provider (i.e., appraisal fees and tax search fees); (2) lender-required services where the borrower selects a third party provider recommended by the lender (i.e., title insurance and closing services and lender’s title insurance); and (3) optional owner’s title insurance when the borrower uses a provider identified by the lender.”
Pay close attention toward closing comments and thoughts of HUD's legal position for amendments as well as consequences for violating the amendments. Also consider the authors and their biographies.
Perhaps some also noted the Wall Street Journal article http://online.wsj.com/article/SB120969130202961543.html indicating Countrywide collected $173 Million on appraisals in 2007?
This is the concern; U.S. District Judges have been diabolically split in the definition of a management fee when complaint of RESPA violation has been filed. The new reforms are helpful but “Congress and several federal courts have said on numerous occasions that RESPA is not a rate-setting statute; in other words, the Act does not authorize the Department to set limits on the reasonableness of fees charged for settlement services”………………….” should lenders and mortgage brokers really be concerned about GFE violations; what is the penalty if a lender, for instance, exceeds the 10% tolerance? The answer: nothing. RESPA’s statute contains no penalties for a violation of RESPA’s disclosure requirements, and HUD has acknowledged that it has an enforcement dilemma. In fact, HUD indicates in the preamble to the proposed rule that it plans to approach Congress for authority to impose civil money penalties, as well as injunctive and equitable relief for violations of Section 4 and Section 5 of RESPA.[15] Until HUD is granted that authority, however, neither the proposed rule nor the regulations in their current form provide for any penalty to punish those settlement service providers that fail to comply with HUD’s proposed changes”
Comments on the reforms are due by May 13, 2008, the entire proposal is accessible at: http://www.HUD.gov/utilities/interc...0/edocket.access.gpo.gov/2008/pdf/08-1015.pdf
Respectfully,
Maverick
Please visit and thoroughly absorb all information here: http://www.klgates.com/newsstand/Detail.aspx?publication=4395
“HUD would subject the sum of the fees in the second category to a 10% tolerance. While each individual fee may increase or decrease, the sum of the total increases may not exceed 10% at closing.
10% tolerance fees would include: (1) lender-required settlement services where the lender selects the third party provider (i.e., appraisal fees and tax search fees); (2) lender-required services where the borrower selects a third party provider recommended by the lender (i.e., title insurance and closing services and lender’s title insurance); and (3) optional owner’s title insurance when the borrower uses a provider identified by the lender.”
Pay close attention toward closing comments and thoughts of HUD's legal position for amendments as well as consequences for violating the amendments. Also consider the authors and their biographies.
Perhaps some also noted the Wall Street Journal article http://online.wsj.com/article/SB120969130202961543.html indicating Countrywide collected $173 Million on appraisals in 2007?
This is the concern; U.S. District Judges have been diabolically split in the definition of a management fee when complaint of RESPA violation has been filed. The new reforms are helpful but “Congress and several federal courts have said on numerous occasions that RESPA is not a rate-setting statute; in other words, the Act does not authorize the Department to set limits on the reasonableness of fees charged for settlement services”………………….” should lenders and mortgage brokers really be concerned about GFE violations; what is the penalty if a lender, for instance, exceeds the 10% tolerance? The answer: nothing. RESPA’s statute contains no penalties for a violation of RESPA’s disclosure requirements, and HUD has acknowledged that it has an enforcement dilemma. In fact, HUD indicates in the preamble to the proposed rule that it plans to approach Congress for authority to impose civil money penalties, as well as injunctive and equitable relief for violations of Section 4 and Section 5 of RESPA.[15] Until HUD is granted that authority, however, neither the proposed rule nor the regulations in their current form provide for any penalty to punish those settlement service providers that fail to comply with HUD’s proposed changes”
Comments on the reforms are due by May 13, 2008, the entire proposal is accessible at: http://www.HUD.gov/utilities/interc...0/edocket.access.gpo.gov/2008/pdf/08-1015.pdf
Respectfully,
Maverick
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