July 22, 2008
RESPA Reform Action Alert:
Contact Your Congressman and Request They Co-sign
Rep. Hinojosa's Letter to HUD
If you are a title insurer or agent, lawyer, escrow officer or provide closings, the US Department of Housing and Urban Development's (HUD) proposed RESPA rule could have dramatically negative effects on your business. Among many costly and burdensome provisions, the rule would require the preparation and explanation of a closing script and loan comparison document at closing. This requirement would:
- Double your time spent on closings;
- Require you to understand and explain loan terms to borrowers at closing;
- Make you responsible for borrowers understanding the terms of their loans;
- Subject you to charges of unauthorized practice of law; and
- Increase your legal liability.
In addition, the rule would unfairly assist the biggest mortgage lenders in gaining more control over the real estate consumer. The largest lenders could negotiate volume discounts with their affiliated settlement service providers and push small providers out of the business. Now is not the time to make such sweeping market changes to the real estate industry. We need your help today to defeat or significantly narrow the scope of the proposed rule.
Members in the US House of Representatives are requesting that HUD withdraw this harmful rule and immediately begin crafting a better RESPA rule.
Please take just a few minutes to call your local Congressman (Capitol Switchboard 202-225-3121) and ask them to sign the Dear Colleague letter being circulated by Rep. Ruben Hinojosa (D-TX) and Rep. Judy Biggert (R-IL) to HUD Secretary Steve Preston urging him to withdraw the proposed rule and immediately begin a joint rulemaking process with the Federal Reserve Board to provide better disclosures to homebuyers. If you need to speak to a staff person, ask to speak with the Legislative Assistant that handles housing or financial services, and tell them how important it is to stop this proposed rule.
Click here to find your Congressman.
The following groups have joined TLTA and ALTA in supporting this request:
American Bankers Association (ABA), National Association of Realtors (Realtors), Credit Union National Association (CUNA), National Community Reinvestment Coalition (NCRC), National Association of Federal Credit Unions (NAFCU), American Financial Services Association (AFSA), Consumer Bankers Association (CBA), Consumer Mortgage Coalition (CMC), Housing Policy Council of the Financial Services Roundtable(FSR, Independent Community Bankers of America (ICBA), Real Estate Services Providers Council, Inc. (RESPRO), Mortgage Bankers Association (MBA), National Association of Hispanic Real Estate Professionals (NAHREP), National Association of Home Builders (NAHB) and Independent Bankers Association of Texas (IBAT).