HUD Secretary Commits To RESPA Reform

The assistant HUD secretary Brian Motgomery commented today on the ongoing issue of changes to the Real Estate Settlement Procedures Act (RESPA), which regulates affiliated business arrangements between real estate professionals. RESPRO is a trade organization that supports such arrangements. "We all agree it's time to update it," Montgomery told the board of directors, saying that a roundtable discussion involving HUD and RESPRO leaders last fall has strengthened HUD's proposals for updating the 1974 act, which governs such things as kickbacks between real estate service providers.

"Just as we are committed to FHA reform as a means of promoting home ownership, we feel the same way about RESPA reform," Montgomery told the group.

The title insurance industry came under an intense spotlight last year after Colorado's Insurance Division in February 2005 investigated nine Colorado title insurers for alleged kickback schemes said to result in overcharges to consumers. The probe sparked dozens of investigations nationwide, in Florida, Washington, Hawaii, California, Oklahoma, Minnesota, Washington and other states. For the full story, click here. See my earlier blog posts on RESPA and Kickbacks. Real Estate , Appraiser , RESPA , FHA