CSE Applauds HUD’s Effort to Simplify Mortgage Process

Today, Citizens for a Sound Economy (CSE), in a joint letter with Empower America, Citizens Against Government Waste, the Seniors Coalition, and National Taxpayers Union, offered support for the U.S. Department of Housing and Urban Development’s (HUD) proposed rule to revise the nearly 30-year old Real Estate Settlement Procedures Act (RESPA). The proposed rule would simplify the mortgage process for consumers and deliver lower closing costs for homebuyers.

In the letter, the signers stated that:

“HUD’s proposal would strip away existing regulatory barriers and allow businesses in the real estate market to offer consumers volume discount pricing and guaranteed costs in advance of reaching the closing table. Through regulatory reform and greater competition, consumers stand to realize more than $10 billion, or nearly $1,000 per home closing in market efficiencies…

“Further, HUD’s proposal to simplify government-mandated disclosure requirements will help to minimize frivolous lawsuits. The complexity of current requirements creates a target rich environment for trial lawyers to bring baseless suits against well-meaning lenders and settlement service providers. Ultimately, this litigation increases the cost of capital for consumers.”

CSE President and CEO Paul Beckner had these comments:

“HUD’s proposal to reform RESPA is a step in the right direction to make home buying easier for consumers. The proposal would greatly reduce the amount prospective buyers would pay in closing costs and would make the process much more convenient. CSE supports this proposal and we urge members of Congress to do the same.”

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