HUD Reports RESPA Settlements With 6 Builders

Six homebuilders have entered into settlements totaling $1.4 million for alleged violations of the Real Estate Settlement Procedures Act and agreed to stop participating in captive title reinsurance arrangements, according to the Department of Housing and Urban Development.HUD Assistant Secretary Brian Montgomery said there is "no legitimate purpose" for single-family captive title reinsurance. "It is increasingly clear to us that these complicated business arrangements serve no other purpose than to hide referral fees and kickbacks, which are expressly forbidden by law," he said. As part of the settlements with HUD, Pulte Homes Inc. agreed to pay $466,000; KB Home, $456,000; Beazer Homes USA Inc., $261,000; Ryan Group Inc., $84,000; Meritage Homes Corp., $66,000; and Technical Olympic USA Inc., $52,000.