The National Association of Realtors® testified in Congress on the critical importance of reforming the Real Estate Settlement Procedures Act in a way that truly benefits home buyers by reducing costs, simplifying the closing process, and making closing cost disclosures more consistent and understandable.
NAR has expressed concern over the current U.S. Department of Housing and Urban Development proposal for RESPA reform, which falls short of its stated goal of simplifying the closing process. In addition, HUD’s proposed closing script not only lengthens an already long process but also will ultimately increase closing costs.
NAR and the Center for Responsible Lending have recommended that HUD develop a one-page summary GFE to help buyers comparison shop, accompanied by a full GFE that includes all closing costs to reduce confusion. NAR also supports improved disclosures of mortgage terms and settlement services.
“The new GFE, with its price guarantees, volume discounts and price tolerances, is designed to reduce costs, but its provisions will have the unintended consequences of reducing competition in the settlement services industry, favoring large lenders, and ultimately disadvantaging consumers,” said Lindsey.
Source: Realtor.org
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