The Housing and Urban Development's RESPA Division is in a precarious situation today due to the fact that this division which is responsible for regulating the real estate settlement services industry is critically understaffed and underfunded. The ObamaAdministration and Congress need to work quickly to address the severe problems that this division is under because it is adversely impacting the enforcement mechanisms which help regulate the real estate industry.
Currently there are less than 30 RESPA enforcement staff members for the entire United States. The current group of staff members are overwhelmed with cases and the number of complaints going into that office each day is getting bigger and bigger. Many of the problems related to the current real estate mess could have been prevented had this division had enough staff to enforce the current rules and regulations that regulate the real estate industry today. In 2008, the RESPA division expected to respond to 3,000 complaints but it recieved 5,578 complaints for a staff of less than 30. In 2009, those numbers are expected to double to over 10,000 complaints for a staff of less than 30.
The RESPAdivision is clearly overwhelmed and to add insult to injury this division is now in charge of going after the newest area of mortgage mayhem the bad loan modification companies and loan servicing companies. Please contact your congress person or senator and demand that they properly fund one of the most important regulatory bodies in the real estate industry. HUD's RESPA Division can not lobby the House or the Senate for more help this must come from members within the real estate industry and consumers across the US. This is the only way that we can effectively combat the bad apples in the industry otherwise the wild wild west of little enforcement will continue in this industry to the peril of those companies that do it right and to the consumers.
Please contact your congressman or senator by sending them a letter urging them for more resources to the HUD RESPA Enforcement Division while congress is in session.