Real Estate

Real Estate Settlement Procedures Act

1. State the administrative agency which controls the regulation.  Explain why this agency and your proposed regulation interests you (briefly).  How will this proposed regulation affect you or the business in which you are working? Provide the URL to the website where the regulation change proposal is located. (Check your URL to be sure it takes the reader to the actual regulation).  (10 points)

As of March 2008 HUD proposed a change of regulation in the Real Estate Settlement Procedures Act (RESPA). This act was passed in 1974 to ensure consumer protection for federally related mortgage loans. The interest that I have in this program is closely related to my desire to become more knowledgeable about the Real Estate industry. These procedures, along with many others, will be beneficial in understanding the different rules and regulations required by mortgage lenders, compliance officers, and other financial institutions. Currently as an aspiring realtor, I feel that the relative changes of this regulation will assist me in adhering to the disclosures and practices that govern the HUD program. http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/08-1015.pdf

2. Describe the proposal/change. (10 points)

The standard for “HUD’s current RESPA rules do not facilitate shopping or competition to lower settlement cost and housing transactions.” HUD’s objective is to ensure buyers protection from high settlement cost by providing accurate estimates through the Good Faith Estimate (GFE), by providing borrowers with information about final loan terms and cost, and also to improve the verbiage of helping borrowers understand the premiums and settlement charges. This act will mainly ensure that HUD presents consumers with accurate and timely information provided by loan services.

3. Write the public comment which you would submit to that proposal. If the proposed regulation deadline has already hit,...