HUD Withdraws Proposed RESPA Rule
In response to a lawsuit and comments filed by NAHB and its allies, the Department of Housing and Urban Development earlier this month withdrew a proposed rule governing affiliated businesses that would have dampened demand for new home purchases.
NAHB and a coalition of its members had filed suit against HUD in federal district court in Virginia to challenge the rule, which was intended to implement some changes to Real Estate Settlement and Procedures Act (RESPA) regulations.
The rule would have prohibited home builders from offering bona fide discounts and packaging of real estate settlement services, which have saved home buyers thousands of dollars in closing costs, title searches and other fees.
NAHB submitted detailed comments to HUD, saying that this rule would have been bad for consumers, bad for the housing industry and bad for the economy.
Although the rule was withdrawn, HUD did say that it may still come back in the future and conduct a new rulemaking on the “required use” definition that was at the heart of this issue.
For more information, e-mail Duane Desiderio at NAHB, or call him at 800-368-5242 x8146; or contact Bill Renner, x8597.