HUD Delays Enforcement of New RESPA Rules
FHA approved lenders and mortgagees scurrying to comply with the upcoming RESPA rule, may have reson to relax. The U.S. Department of Housing and Urban Development (HUD) announced November 13, 2009 plans to lessen or restrain enforcement of new regulatory requirements under the new RESPA rules, which will go into effect January 1, 2010.
The Mortgagee Review Board (MRB) will delay enforcement until May 1, 2010, but with stipulations. As long as the MRB has reason to believe that FHA approved mortgagees have made a good faith effort to comply with the new requirements, the MRB will exercise restraint in taking enforcement actions. To determine whether lenders have made a good faith effort, the MRB will consider lenders' effort and commitment in technology, training and quality control regarding compliance to the new RESPA rules.
This announcement does not change the effective date of the new RESPA rules nor allow for any delayed implementation. Rather, HUD has acknowledged that integration of the new requirements may be a bit rocky at first. HUD has also asked other federal and relevant state enforcement agencies to also exercise the same 120-day restraint in enforcement for non-FHA originations and other settlement providers that make good faith efforts to comply.
See HUD's press release click here