Industry slams HUD's RESPA proposal

Industry groups today voiced alarm over changes proposed by federal regulators to the Real Estate Settlement Procedures Act, or RESPA, saying they will prove costly to implement and won't help consumers as claimed.

The Department of Housing and Urban Development says its proposed changes to RESPA -- including simplified disclosures of loan terms and settlement costs, and incentives for packaging settlement services with loans -- will save consumers about $8.35 billion a year, or more than $700 per loan.

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