RESPA Given January Go Ahead

Department of Housing and Urban Department officials are moving ahead with the Jan. 1 effective date for the new RESPA rule, despite warnings from industry groups that it could lead to a compliance train wreck. Six industry groups urged HUD to postpone the effective date of the Real Estate Settlement Procedures Act rule that requires lenders to use a new standardized good-faith estimate disclosure and a revised HUD-1 settlement sheet. "HUD, particularly the Office of Housing, is acutely aware of the procedural concerns, timing constraints and ancillary costs attributable to the implementation of these new requirements and the issues they raise for your members," HUD assistant secretary David Stevens says in a letter to industry executives. Mr. Stevens pledged that HUD would continue to work with lenders, title underwriters, escrow agents and others to make implementation as smooth as possible.