HUD a RESPA Hearing No-Show

Department of Housing and Urban Development officials have refused to testify before a House Financial Services subcommittee and defend its RESPA rule before congressional and industry critics who want to kill the rule. HUD told subcommittee Chairman Mel Watt, D-N.C., that they should not comment about the Real Estate Settlement Procedures Act rule while it is under review at the Office of Management and Budget. Rep. Watt said at the hearing that he was disappointed that HUD Secretary Steve Preston did not show up. "I though it would be fun to see a bipartisan pummeling of a federal government agency and a spirited defense," he said. Federal Reserve Board officials also declined to testify, "citing a reluctance to be critical of another federal agency," Rep. Watt said. Congressional critics have urged HUD to withdraw the RESPA rule and work with Federal Reserve staff in developing more simplified mortgage and real estate settlement cost disclosure forms. Fed staffers have also urged HUD to take a more coordinated approach in revamping the consumer disclosures. But HUD ignored the Fed and sent the final RESPA rule to the OMB on Aug. 21. Meanwhile, Rep. Judy Biggert, R-Ill., said she expects to get over 200 fellow members of Congress to sign a "dear colleague" letter that urges the OMB to postpone final approval of the RESPA rule until HUD holds public hearings on it.