Speaking to the National Press Club in Washington, DC today, Department of Housing and Urban Development (HUD) Secretary Mel Martinez launched his agency's "Homebuyer Bill of Rights," a sweeping reform proposal that would substantially re-work the Real Estate Settlement Procedures Act (RESPA). The new regulatory scheme, to be published in the Federal Register within a month and be open for public comment for 90 days thereafter, would allow lenders to accept volume discounts from providers of services like appraisals and title.
Currently, HUD's enforcement of RESPA treats such volume discounts as illegal kickbacks.
Under the plan, borrowers will be able to shop for "guaranteed mortgage loan packages" -- closing and settlement services -- in the same way they may now shop for rates and points. Settlement and closing costs would be more rigorously limited to the Good Faith Estimate (GFE) provided borrowers upon rate lockdown.
http://www.appraisalintelligence.com/news/...ines/281-1.html
Currently, HUD's enforcement of RESPA treats such volume discounts as illegal kickbacks.
Under the plan, borrowers will be able to shop for "guaranteed mortgage loan packages" -- closing and settlement services -- in the same way they may now shop for rates and points. Settlement and closing costs would be more rigorously limited to the Good Faith Estimate (GFE) provided borrowers upon rate lockdown.
http://www.appraisalintelligence.com/news/...ines/281-1.html