Trade Groups Push for RESPA 'Coordination'

Once again industry trade groups are trying to get HUD to backpedal on a Real Estate Settlement Procedures Act rule, claiming the department should work with the Federal Reserve Board on making mortgage disclosures complementary with the Fed's so consumers will not get confused. The Fed is working on making disclosure changes that fall under the Truth in Lending Act. "We urge that HUD and the board to join together, with industry, consumers and other stakeholders, to make the disclosures as effective as possible," according to a Feb. 9 letter sent to HUD secretary Shaun Donovan. The eight groups contend that the Department of Housing and Urban Development should withdraw or suspend a recently finalized RESPA that revamps the good-faith estimate disclosure. However, the housing industry is no longer united in opposition to the final RESPA rule. Stalwart opponents of past RESPA reforms -- the National Association of Realtors, RESPRO and the American Land Title Association -- did not sign the letter. The American Bankers Association, Mortgage Bankers Association and five other lender groups did. The eight trade groups noted that last summer 243 congressmen signed a petition urging HUD to pull back from issuing a final RESPA rule and coordinate its disclosures with the Fed's Truth in Lending Act mortgage disclosure project.