| A real estate trade publication recently reported that HUD's Office of Single Family Housing has warned housing counseling agencies that it is not permissible to take a fee split from real estate brokers or agents to defray the cost of counseling and that fee splits may violate the Real Estate Settlement Procedures Act (RESPA). All HUD-approved housing counseling agencies, their affiliates, and branches were ordered to stop the practice immediately. The warning came in response to reports that some housing counseling agencies were receiving a share of real estate broker or agent commissions on short sales to pay for clients' foreclosure counseling sessions |
Tuesday, March 17, 2009
HUD Warns Housing Counseling Agencies Not Take a Fee Split from Real Estate Brokers/Agents
Monday, March 9, 2009
HUD Reopening Comment on Required Use Provisions of New RESPA Rule
On Friday, HUD announced (http://www.hud.gov/news/release.cfm?content=pr09-020.cfm) it will reopen public comment on how it should define "required use" for purposes of Section 8 of the Real Estate Settlement Procedures Act.
The "required use" provisions in HUD's November 16, 2008 RESPA rule would particularly affect builders' incentives for use of affiliated lenders and were the subject of litigation by the National Association of Home Builders. HUD said it said it will delay its implementation of the provisions for 90 days, or until July 16th, as it solicits public comment on whether to withdraw its new definition. HUD did not indicate that it would withdraw the entire RESPA rule to coordinate it with the forthcoming Truth in Lending Act revisions as HUD and several other trade associations recently requested by letter to Secretary Shaun Donovan.
Lawsuit Reform Measures Move Forward
HB 1601 (Representative Dan Sullivan & Senator Glenn Coffee) passed the House of Representatives February 11th by a vote of 62-36. The bill prohibits attorneys and counselors from withholding a portion of judgments for the purpose of making political donations.
HB 1602 (Representative Dan Sullivan & Senator Glenn Coffee) passed the House of Representatives February 18th by a vote of 54-46. The bill will allow Oklahoma voters to decide if more of a lawsuit’s proceeds should go to the claimant. Current law caps attorney fees at fifty percent (50%). This bill will allow the voters to decide if that figure should be dropped to thirty-three percent (33%) of the first One Million Dollars ($1,000,000.00) recovered and twenty percent (20%) of any amount exceeding One Million Dollars ($1,000,000.00). The bill now goes to the Senate.
The bill now advances to the state Senate.
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