The Path To Reform

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.  

So what does the Chairman of the Senate Banking, Housing and Urban Affairs Committee, Chris Dodd say about the prospects of a mortgage reform bill in the Senate?  This week he said that while he was “envious” of the ability of the House to push through legislation swiftly and that he was facing conflicts over various provisions that probably would slow the bill in the Senate.  “That will be a controversial bill, so you need time to work that and listen to your colleagues,” Dodd said.  He also stated “There isn’t a lot of predatory [mortgage] lending going on right now, so while it would certainly plug a hole, these other issues I’m grappling with are current issues,”

Back in civics class we learned that the Senate is a much more deliberative body, and they don’t take up nearly as many measurers as does the House.  The House has previously passed items (including Mortgage Reform Bills) that are never taken up on the Senate floor.  Given the Chairman's comments on Tuesday, it doesn't sound as if the Senate is charging ahead to slow down implementation of the RESPA Rule.
 
While no one can say for sure what the future is for the new HUD-1 and GFE provisions, we can read the tea leaves coming out of Washington.  And if I were a gambling person (okay, since I am a gambling person) my money is on remaining engaged and prepared.  That way, I can’t lose … and neither will you.