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June 13, 2008
NAR: HUD Underestimates RESPA Reform Costs
A recent study funded by the National Association of Realtors and conducted by economist Ann Schnare finds that HUD's proposal to revise the Real Estate Settlement Procedures Act to require new good-faith estimate forms and permit packaged settlement services would actually boost loan costs by about $413-- rather than save $700 per loan, as the agency claims. According to Schnare, it is reasonable to estimate 2.7 to 3.4 good-faith estimates would be prepared for every loan, versus HUD's projection of 1.7. Additionally, the study says application processing and tracking would add up to $89 per loan, interest-rate locks would add $272 for $200,000 mortgages and other underwriting costs would add $52.
Posted by S. Germain at June 13, 2008 08:03 AM