HUD = US Department of Housing and Urban Development
RESPA = Real Estate Settlement Procedures Act
The purpose of RESPA is (according to HUD):
The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. The purposes of RESPA are
- to help consumers become better shoppers for settlement services and
- to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.
All good things. RESPA is what drives things like Good Faith Estimates from lenders, and the standardized HUD-1 closing settlement sheet. (available for download on our site.)
Today HUD proposed reforms to RESPA.
HUD claims that simplifying and standardizing home buying disclosure forms could save the average buyer almost $700 at closing — chiefly by making it easier to “comparison shop” lenders and settlement service providers (typically title companies in Arizona).
If you really want the details of the proposal, including sample forms, you can download the 96 page PDF file here.
I do find it somewhat ironic that HUD releases a 96 page, three text column document that discusses “simplification”. But that’s the government for you.
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[tags]HUD, RESPA reform, 96 pages to explain simplification[/tags]
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{ 3 comments… read them below or add one }
The loan business is very complex new forms will help consumers but all things considered I bet less then 5-10% of the realtors in Tucson could effectively even explain a HUD and they are supposed to understand them. More or less a consumer, I guess thats only good news for those of us agents who actually know what we are doing.
“I do find it somewhat ironic that HUD releases a 96 page, three text column document that discusses “simplification”. But that’s the government for you.”
No question.
If it takes 96 pages to explain this then you know it’s full of half truths.
Many homebuyers will take the discount and do the work.