I should have known it as soon as my hands started hurting again and the hot flashes started back up. Yes, that seems to be my personal stress response. Criminy.
My reticence to discuss the RESPA reform is largely due to what’s NOT there rather than what is.
I hate that we need these new procedures but I understand that in the face of industries refusing to regulate themselves, government must step in and protect consumers. So, with that perspective, I FULLY DEFEND HUD AND THE NEW GFE AND THE CLOSING SCRIPT AND THE NEW HUD-1 FORM even though I understand how hard it is to embrace change.
So, in defense of the folks at HUD, thank you for your thoughtful rewrite of consumer disclosure. Thank you for codifying the pre-approval process and creating a unified methodology that industry insiders and consumers will eventually understand.
Here’s what’s missing and why I have this void in the verbal response. You offered no clarity in affiliations or kickbacks that I can find and put my arms around. Instead, you have created new cloudy areas with volume discounts and average cost pricing.
We’re living in clouds. We’ll get lost in clouds. I will try to survive the storm of ill conceived ventures and cold blooded stews that will be cooked up by the ones who can’t fly straight.
I had so hoped for clarity.
I had so hoped for the bright light of understanding.
I had so hoped for confirmation.
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{ 2 comments… read them below or add one }
Agreed 100%. If there is one thing that has caused our current crisis, its the lack of checks and balances in the residential transaction process. No longer are there seperate agents with their clients’ best interests at hearts. Absolute fidelity from fiduciaries, although still espoused by the law as a right, is gone. Replaced with One Stop Shopping even at the hands of attorneys. Without representation, without conflict-free advice, of course there is going to be manipulation and exploitation. Of course the real estate market will end up in the tank. HUD has missed the target on this one. Heck, they’re not even in the same room as the target.
I agree that it would be nice to have some clear-cut guidelines that protect the consumer. The whole driver of the mess we’re in is vague rules riddled with loopholes that allow for greed, greed, greed.
You can’t really afford this home? Great! We’ll charge you a higher interest rate. Better yet, we’ll give you a low teaser or an interest-only so you DO qualify. Either way, I get my commission.
And of course, all the plans to freeze mortgage rates or renegotiate terms only delay the inevitable. It allows the consumer to limp along, and the lender to get as much as possible until the bottom falls out again.