Blogs

Without a doubt, the biggest RESPA question on everyone’s mind right now is whether or not RESPA Reform is here to stay.  In last Friday’s blog, we reviewed what would have to happen to produce legislation that would significantly slow or halt implementation of the new rule.  We saw that suspending the rule is much more complicated that a single vote in the U.S. House or the stroke of a pen.  

Continuing to hear nothing but heartache for those trying to get qualified for a loan!  After all the trouble we have been through can no one see that this is an issue of getting people to be in a position to purchase a home and the key to everything is getting qualified!  How can Obama’s people not know this, fix the qualification standards!  What are you hearing in your state?

Did you hear what HUD Secretary Donovan said yesterday regarding the future of RESPA Reform?  He announced that the Department of HUD is committed to seeing this RESPA Reform Rule through.  Those of us who watch this issue closely have been waiting for an indication from the new HUD Secretary that would describe their views of the rule (which was published under the previous administration). 
 

On a 2010 HUD-1, you will need to disclose the amount of title insurance premium retained by the agent and the amount remitted to the underwriter on lines 1107 and 1108. And while during the RESPA comment period we all argued against that logic, (especially since it doesn't hold true for line 903, line 902 or any other insurance premiums shown on the HUD-1 form)...the requirement held and it is part of the final RESPA reg. So, I have to touch on what could possibly be a third rail topic, but we need to talk about it. What amounts will be disclosed?

Do you believe that you as an industry have an identity? This recent RESPA reform and certainly any action taken by the MBA (e.t. MIRA) suggest the Settlement side has no identity and they don’t seem to want to acknowledge it.  I am just suggesting that shouldn’t there be a distinct line drawn between the Financial and Property side of the transaction?  When do we get recognized and treated with equal respect at the Big Boys table?

This morning probably finds your scratching your head and asking “What’s Next?” for the future of RESPA Reform.  H.R. 1728’s passage in the U.S. House yesterday has many wondering if they still need to get and stay RESPA Ready.  The Congressional Quarterly says the future of H.R. 1728 is “murky”.  Remember this gem from School House Rock of a Bill’s long journey of trying to become a Law? 

By a vote of 300-144, the US House of Representatives passed the Mortgage Reform and Anti-Predatory Lending Act, including an amendment that would delay implementation of the new RESPA rule.  Is the new RESPA regulation DOA?  Don't count it out just yet.  The senate still must introduce and pass similar legislation.  We've got our ear to the ground and will keep you up to date and informed.  Here's a look at the results of the vote.

If you are an Independent Title Company owner will you continue to be silent on every issue that comes your way?  Will you allow your business which may have been your father’s go the path of the Independent Pharmacy, the Independent Bank, or the Independent Hardware Store?  The world is changing, the sky is falling and it will probably fall on your head!  How will you get involved?  How will you protect your interests?  How will you compete in this new world that is undefined and how do you know whether this signifies the end or not?

Are you a loan originator or do you do business with one?  Recently, I blogged about the importance of understanding your customer’s concerns and providing them with solutions.  Are you still unsure if RESPA reform is causing heartburn for lenders?  Take a look at

Many of you probably saw the news this morning stating Bank of America may need $34B of additional capital to pass the Government Stress test and it brings to mind the next big hurdle we may need to overcome.  I doubt seriously that a bank the size of BOA will fail, but clearly the Governments printing money apporach to fixing it suggests we may experience inflation of the likes seen in the 80's.  Our next big hurdle may very well be double digit interest rates and that in itself may keep us in a depressed real estate market!