Even though RESPA reform was (more or less) killed by HUD on Monday, the White House had raised concerns about how a new rule would be affected by state anti-tying and anti-affiliation laws.According to a letter from Office of Management and Budget Administrator John D. Graham, a host of state laws "could present significant obstacles to packaging, stifle competition, and diminish consumer savings." The OMB had not yet completed its analysis of the Department of Housing and Urban Development's effort to revise and simplify the settlement and closing process. The OMB had extended its review, but when HUD withdrew its new Real Estate Settlement Procedures Act rule from consideration on Monday, the OMB's role ended. Still, the letter from Mr. Graham to acting Secretary Alphonso Jackson raises several concerns, including worries that new loan forms under consideration might be confusing to the consumer.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry