Groups Urge Reissuance of RESPA Rule

Three banking trade groups are urging the Department of Housing and Urban Development to re-issue its Real Estate Settlement Procedures Act proposal so they can review it and comment on it one more time."We believe that re-publishing the rule, with any revisions reflecting HUD's current approach to RESPA reform, and allowing another round of comments from the public and consideration by HUD, would be the most prudent way to assure that the final rule accomplishes HUD's purpose," said America's Community Bankers, the American Bankers Association, and the Consumer Bankers Association in a Nov. 19 letter. The Financial Services Roundtable also has asked HUD to re-publish the RESPA rule, which is supposed to simplify the mortgage process and reduce the cost of settlement services. Rumors have been circulating that HUD is getting ready to issue a final rule once Congress adjourns for the year. But under normal procedures, it has to be cleared by the Office of Management and Budget first, which usually takes several months.