MBA Seeks Reissuance of RESPA Proposal

The Mortgage Bankers Association of America has told the Department of Housing and Urban Development that it no longer supports the direction HUD is taking on RESPA reform and opposes the issuance of a final rule.In a memo to the MBA's board of directors, senior vice president Kurt Pfotenhauer says he told HUD in the "strongest terms" not to issue a final rule. He also communicated the "association's deep and growing dissatisfaction" with HUD's attempts to reform the Real Estate Settlement Procedures Act, according to a memo obtained by MortgageWire. In an interview, Mr. Pfotenhauer stressed that the MBA still supports simplification of the mortgage process, but that HUD is moving toward a proposal that is "the antithesis of simplification for consumers and may not even work." During the summer, MBA officials were hoping that HUD would issue a final rule. But now the MBA believes HUD should reissue the RESPA proposal for another round of public comment. "Perhaps giving everyone a chance to look at HUD's current thinking would be constructive," he said. (For full details, see the Oct. 20 issue of National Mortgage News.)