ALTA, NAR, CRL Reach Consensus On RESPA Proposal.

Reforming the GFE will Accomplish HUD's Goal of Better Consumer Disclosure

WASHINGTON -- In a joint letter today to Secretary Steve Preston of the Department of Housing and Urban Development (HUD), the American Land Title Association (ALTA), National Association of REALTORS[R] (NAR), and the Center for Responsible Lending (CRL) took a consensus position on HUD's proposed rule to amend the Real Estate Settlement Procedures Act (RESPA) that reforming the Good Faith Estimate (GFE) will accomplish the Department's goal of helping consumers to better understand their loan terms and settlement costs.

The organizations recommended that a summarized GFE should be accompanied by a more detailed GFE, with explanations of each subcategory of fees, to help consumers understand more fully the services and accompanying fees for which they are being charged.

"While we might have various concerns about other elements of the proposed RESPA rule, we have worked closely together on ways to improve consumer disclosures by enhancing the GFE," the letter states. "This joint effort has resulted in broad agreement between NAR, CRL, and ALTA that a more summarized, more easily understandable GFE that highlights key loan terms and payment information is needed."