Magazine article Mortgage Banking

HUD Withdraws RESPA Rule for Further Review

Magazine article Mortgage Banking

HUD Withdraws RESPA Rule for Further Review

Article excerpt

THE DEPARTMENT OF HOUSING AND URBAN Development (HUD) has withdrawn its final rule to reform the Real Estate Settlement Procedures Act (RESPA).

In a letter to the Office of Management and Budget (OMB), Acting HUD Secretary Alphonso Jackson wrote, "The administration is strongly committed to efforts to simplify, improve and lower costs associated with obtaining home mortgages. However, due to the significant number of questions raised about the draft final RESPA rule ... [HUD] has decided to withdraw" the rule from OMB review.

"I believe it would be prudent for HUD to re-examine the RESPA rule before it is made final," Jackson wrote in the letter to OMB. "I plan to revise the rule, if necessary, and to re-propose the rule, requesting additional comments, after I have had an opportunity to brief members of Congress and to meet with affected consumer and industry groups. After the rule has had a complete vetting, I will send it back to OMB for review."

OMB Administrator John Graham responded in a letter to Jackson, stating, "We believe RESPA reforms are promising, but agree that the rule would benefit from additional consideration." Graham listed four aspects of the rule--forms, regulatory flexibility analysis and regulatory impact analysis, pre-emption, and packaging--that require "more work. …

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