The Department of Housing and Urban Development settled with two mortgage companies this week suspected of violating the Real Estate Settlement Procedures Act, but next week, reams of pending cases will transfer to the Consumer Financial Protection Bureau.
In November 2008, HUD issued new RESPA regulation, establishing a standard Good Faith Estimate form and process and an expanded HUD-1 Settlement Statement. To be in compliance with RESPA, and help assure fair prices for consumers, actual costs at closing must fall within established tolerance ranges. These new disclosures were implemented in January 2010.
Since then, HUD opened more than 1,500 cases against mortgage companies suspected of violating RESPA, said Teresa Payne, the associate deputy assistant secretary for regulatory affairs at HUD.
These and 37 HUD employees will transfer over to CFPB headquarters when the new agency opens July 21.
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