Proposed RESPA changes 'premature'
October 21, 2002
NAR asks for additional hearings and extended comment period beyond Oct. 28 deadline
Inman News Features
The National Association of Realtors this week asked Congress and the Department of Housing and Urban Development for additional hearings and extended comment period on the administration's proposal to change the Real Estate Settlement Procedures Act.
NAR President Martin Edwards Jr. in a letter delivered to members of the House Financial Services Committee and the Senate Banking Committee said that while NAR supports HUD's goal of improving the mortgage process, it is concerned the proposal may not achieve the desired results.
"It is critical to ensure that any reform does not disrupt a system that works well for the vast majority of consumers," said Edwards. "Housing is too important to the overall health of the nation's economy to make such sweeping changes prematurely." He said the department's 90-day comment period for the proposal, which is scheduled to expire Oct. 28, is unreasonable.
Edwards said that NAR believes some of the proposed changes will alter the structure of the settlement service and lending industry, and may increase market concentration and result in reduced competition. "Changes of this magnitude deserve significant analysis and debate," he said.
Copyright: Inman News Service