ALTA® Provides Comments to SBA on HUD's RESPA Rule
October 9, 2002
Washington, DC – The American Land Title Association (ALTA) believes HUD's proposed changes to the regulations implementing the Real Estate Settlement Procedures Act (RESPA) will have potentially adverse effects on consumers, the mortgage settlement process and small businesses. In addition, ALTA is concerned about HUD's statutory authority to implement and enforce the proposed changes. ALTA shared these concerns and its proposed alternative approach today with members of the Small Business Administration's Office of Advocacy during a roundtable on the issue.
ALTA supports settlement services legislation or regulations that promote consumer choice and empowerment, require meaningful disclosure, and would enhance consumer ability to shop effectively for settlement services and thinks HUD's current effort to revise the RESPA regulations do not achieve these goals.
Cara Detring, ALTA Past President, and Ann vom Eigen, ALTA Legislative/Regulatory Counsel participated in the SBA round robin session focusing on concerns raised by the proposed rule changes for small businesses in the title and settlement services industry.
" ALTA thinks that the SBA should be focusing on why HUD is so willing to tilt the playing field in favor of large lenders and those large settlement service providers that have the ability to provide them with a significant discount; and why HUD is so cavalier about the adverse impact on small businesses – a mainstay of the title industry," said Detring.
For more on ALTA's position on HUD's proposed rule changes, visit the ALTA Home Page atwww.alta.org.
Source: American Land Title Association®