Martinez Vows to Press on With Reform

Despite congressional efforts to "derail" his efforts to reform the mortgage application and settlement process, the secretary of Housing and Urban Development told the National Community Reinvestment Coalition March 12 that he still plans to issue a final rule in a few months."I am determined that we are going to see it through, and I think it is going to be a really good day for consumers," HUD Secretary Mel Martinez said. At a recent hearing, members of the House Small Business Committee complained loudly that HUD's proposal would allow large lenders to package settlement services and squeeze appraisers, title agents, closing attorneys, and others to work at the lowest price. The secretary said they did not seem to comprehend that the HUD proposal would help consumers understand the mortgage process and the costs involved so they don't become "victims" of junk fees and broker abuse. The HUD secretary told MortgageWire that the Small Business Committee hearing was "disappointing" and that the committee was "very antagonistic toward our story." He said he looks forward to testifying before the Senate Banking Committee on March 20 to explain how HUD's proposal will benefit consumers and increase homeownership.