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respa: Do Builder Incentives Discourage Competition? HUD Wants Your Opinion... - 04/02/09 02:38 PM

HUD has succumbed to pressure on its recent ruling against home builders who make incentives contingent upon using their mortgage companies.
Last November, it ruled these builder incentives violated RESPA's required use provision.  This provision states affiliated businesses are exempt from the "required use" provision as long as they offer a combination of settlement services at a total price lower than the sum of the market price of the individual services, and if the discount is not made up by higher costs elsewhere in the settlement process.
HUD asserted it had proof of many cases where builder incentives violated the … (5 comments)

respa: HUD Delays Implementation of Builders' Incentives Provision - 01/13/09 10:51 AM

HUD is delaying implementation of the "required use" provision of the final RESPA rule that was slated to be implemented January 16th. This provision would keep builders from making incentives or discounts available to buyers only upon using the builders' preferred lenders. The delay comes after the National Association of Home Builders (NAHB) filed a preliminary injunction against the rule in late December.
NAHB argues the provision "limits the options available to new-home buyers as they seek out the services necessary at closing." On the contrary, HUD believes this provision makes other lenders available to the buyers, encouraging them to use the lender … (1 comments)

 
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Nicole Lahti, Austin Texas Mortgage

Austin, TX

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United Lending

Address: 8303 N. Mopac Bldg. A-201, Austin, TX, 78759

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