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RESPA REFORM — Public Comment Due April 9th
 Promising news came this week with the Obama Administration's proposal to withdraw and reconsider a Real Estate Settlement Procedures Act (RESPA) provision that would have cost buyers thousands of dollars at the closing table and further depressed the struggling housing sector.
In overhauling regulations tied to RESPA during the final days of the Bush Administration, HUD revised the "required use" provisions of the rule in a way that would prevent builders from offering incentives for consumers to use affiliated companies for home purchase services, such as mortgage and title services. Such builder-provided incentives for voluntary use of affiliated companies have saved consumers millions of dollars in financing costs through the years.
NAHB and a coalition of our members filed suit on this issue on Dec. 22. This lawsuit resulted in a delay until July 16, 2009, for the implementation of the new rule. HUD also said it would allow the public the opportunity to comment on whether the Obama Administration should pull back and re-evaluate the rule.
The latest development is a major step toward permanently restoring the benefits that consumers receive from builders and developers when purchasing a new condominum. Public comments are due April 9, 2009.
For more information contact Duane Desiderio, 800-368-5242 x8146 and Bill Renner, 800-368-5242 x8597.
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