FEDERAL LEGISLATION
HUD is working on a new GFE and maybe a HUD-1. It appears the packaging proposal is DEAD and is 'deep sixed'. But how about a new GFE that would not have the yield spread premium required to be shown? Would you like that? Yeah, before 1992 there was no YSP. In 1974 we were all created equal but after 1992 we became unequal. Now a new era has begun as HUD has a new general counsel named Keith Gottfried who claims to have a fairer view of industry and government. Open up and let industry come visit with him and be in the policy making decisions. Words like transparency and uniformity and openness were his watchwords for the dawn of the new look at HUD. In his June 14 speech to settlement service providers he was energetic and hopeful of a partnership with industry to create guidelines from HUD on how to operate under RESPA. All sounding very cooperative, but as always, 'the devil is in the details'.
The national association representing mortgage brokers has submitted a new GFE that does not have YSP on it. Will they hold firm in front of Mr. Gottfried? Will he be open to going back to pre 1992? I would imagine if we sat right in front of him right now he would not know what we are talking about. Who is going to inform him? Guess? Your leadership and your voice need to be heard. The lending community is at his doorstep influencing his 'transparency' approach. If he looks through rose colored glasses guess who is handing them to him? Not the brokers!
Mr. Gottfried had about five years with Borland Corporation - a software company. Their product - QuatroPro, a spreadsheet piece of software that competed with Excel - who won that mismatch? It is good to have a man of his background in such a high government position, one wonders why he left a $500,000+ job for a $250,000 in the government, regardless he may be what the brokers need. It is a fresh start. The old guard is gone since the fall of last year. The retraction of the proposed rule in March 2004 brought that about. In the final analysis, democracy works, most of the time, with bumps along the way.
HUD needs to keep their hands above the table when issuing and discussing RESPA changes. More exceptions to special interest groups should stop. That is how the 1992 rule got into play. The broker has only had actions taken in their favor when they had legislative effort. Weakness and appeasement will not bode well for the broker. The lenders will not take care of the broker nor will neither the Title Companies nor anyone else nor should they. Step up and fight for what you believe is good for you and your segment of the industry.
Stay tuned or be tuned out or maybe have the lights turned out completely.
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