Fannie Joins RESPA Chorus

Fannie Mae has joined the mortgage industry in calling on the Department of Housing and Urban Development to reissue its Real Estate Settlement Procedures Act proposal for another round of public comment.Fannie Mae supports HUD's effort to simplify the mortgage process and reduce the cost of obtaining a mortgage, general counsel Ann Kapler says in a letter to the Office of Management and Budget. HUD is waiting for OMB approval to issue the final RESPA rule. "Fannie Mae also shares the view that RESPA reform must be accomplished in a way that benefits borrowers without imposing undue regulatory burdens or competitive disadvantages on the firms and small businesses that will be affected by the revised regulation," the Fannie Mae general counsel says. However, the RESPA rule needs thorough evaluation and comment before it is finalized, she contends. "Therefore, we urge OMB to work with HUD to republish this regulation to allow for an additional opportunity for consumer and industry comment," Ms. Kapler says.