HUD'S RESPA ENFORCEMENT DIVISION NEEDS MORE STAFF

By
Services for Real Estate Pros with Sterbcow Law Group

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. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Realtors®
Tags:
obama administration
senate
house of representatives fund hud real estate settlement procedures act respa division more enforcement staff

Spam prevention
Show All Comments
Ambassador
1,124,642
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~ yesmyrealtor@gmail.com

I remember I wrote respa about a violation and never heard a thing back from them at all 

May 24, 2009 01:56 PM #1
Rainer
84,206
Andrew Haslett
Van Warren Home Inspections, NAHI CRI - Fort Knox, KY
Heartland of Kentuckynulls, Best Home Inspector

Marx, and what kind of qualifications does someone need for this work?

I've worked with some other departments within HUD. None seem to have adequate staffing / funding.

I am hopeful that this administration is addressing these issues.

May 24, 2009 02:44 PM #2
Rainer
3,603
Marx Sterbcow
Sterbcow Law Group - New Orleans, LA

The RESPA Division is made up for the most part of highly qualified personnel who worked some capacity in the real estate industry.  In order to get a complaint moved to their radar screen you need to document a detailed summary of events, produce written documentation, and have at least 10 other people who were victims also send in a complaint.  The strength is in numbers approach is very true when it comes to filing complaints with any regulator in the US, not just HUD.

The proper funding of this department is crucial to help stabilize the overall health of the real estate industry.  Without funding the good companies become victims to those who refuse to obey the law.

May 29, 2009 07:35 AM #3
Anonymous
Ken

Marx:  HUD RESPA over the past several years has  utilized contract investigators who receive an "investigative plan" from RESPA staff and then run and report the leads.  What's the status with contract investigators or in-house investigators?  Why does the HUD-OIG not work civil and adminstrative RESPA complaints ? RESPA civil complaints are within the scope of the IG Act.  As you know there is a criminal penalty included in RESPA statute as well. 

Jul 24, 2009 01:50 PM #4
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
3,603

Marx Sterbcow

Ask me a question
*
*
*
*