American Banker (03/17/08) P. 9; Terris, Harry
The public comment period on HUD's proposed revisions to the Real Estate Settlement Procedures Act ends May 13, but more than a half dozen trade groups representing the mortgage industry insist that more time is needed to review the nearly 300-page document. However, Federal Housing Commissioner Brian Montgomery says the process should not be delayed. According to Montgomery, "It is no longer acceptable to stand in the way of millions of Americans who are crying out for clarity when it comes to the biggest purchase of their lives." A proposal formally introduced on March 14 would create a four-page, standard good-faith estimate detailing settlement costs and loan terms; it would limit how much closing costs can rise at the settlement table, and it also call for legislation that would beef up HUD's enforcement powers. The agency says borrowers would save an average $518 to $670 per transaction, or $6.5 billion to $8.4 billion per year overall, if the rules are implemented.
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