Printer Friendly

NAR PRESIDENT ISSUES STATEMENT REGARDING REGULATION BEING PUBLISHED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

NAR PRESIDENT ISSUES STATEMENT REGARDING REGULATION BEING PUBLISHED
 BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 WASHINGTON, Nov. 2 /PRNewswire/ -- Following is a statement from Dorcas T. Helfant, president of the National Association of Realtors, regarding a regulation being published by the U.S. Department of Housing and Urban Development (HUD):
 We are very pleased that HUD has promoted wider choice and convenience for consumers in the mortgage lending process through the expanded use of computerized loan origination (CLO) systems. It is apparent that the department recognizes increased consumer demand for a more expeditious home buying process.
 Facilitating the use of CLO systems in real estate offices is a progressive response to what is clearly a consumer issue. Home loan choices will be opened up, not stifled.
 The provision of a variety of services, including finding a buyer for the seller and matching that buyer with a mortgage to purchase the seller's home, is being driven by technology changes that are affecting all aspects of our lives. The concept, often referred to as one-stop shopping, is made possible through CLO systems.
 HUD correctly backs our contention that CLO systems can benefit consumers by providing a wide choice of mortgages, interest rates and loan terms -- all in the convenience of the broker's office. Real estate brokers do far more than simply show houses. Today's buyers expect us to have the most up-to-date information possible on home loans. They view it as part of our role.
 The right of real estate brokers to collect a fully disclosed fee for providing additional services is part of a regulation to be released by HUD in its implementation of the Real Estate Settlement Procedures Act (RESPA). In the regulation, HUD ratifies the fees- for-services payment to real estate brokers using these systems. RESPA prohibits payments for simple lender referrals, which involve no work from a broker. However, the law clearly allows the collection of fees for actual services rendered. HUD's regulation affirms this, and requires payments to brokers using the systems should be fully disclosed and that system use be voluntary.
 CLO systems permit real estate professionals to instantly provide mortgage options, qualify buyers and submit loan applications, thereby eliminating extra steps in the home financing process. Additionally, streamlined processing, resulting from CLO systems, has forced lenders into speeding up the application process in order to remain competitive.
 HUD's regulation will allow the systems to develop as dictated by consumer needs. As a result, regional and area CLO systems likely will emerge. Such localized systems could be tailored to specific needs of individual real estate markets, extending the concept of multiple listing services for houses to the realm of mortgage finance. Once again, consumers can only benefit.
 Opponents of HUD's position have erroneously charged that real estate brokers tend to refer buyers only to lenders who pay the best fees, regardless of quality of product or service. Nothing could be further from the truth. HUD's regulation opens the door for consumers to a wider range of mortgage possibilities. The more options provided, the sooner a buyer can obtain financing that best suits his needs and the sooner a transaction can be closed.
 Return business is the livelihood of real estate brokers. Sales commissions are worth a lot more to real estate brokers than collecting nominal fees for mortgage referrals or CLO operations. No real estate broker will risk losing a future listing by trying to convince a buyer to use a particular lender on a CLO system. The broker wants that buyer to come back as a seller. And, the key to getting the customer back is the provision of up-to-date, efficient service.
 Additionally, we are pleased that HUD's regulation contains a flexible treatment of diversified companies, which offer full range of real estate services, such as the provision of title insurance and home warranty protection, as well as mortgage brokerage. It is very important that diversified firms be allowed to operate free of unwarranted restraints. Anything less would restrict such companies to a single brokerage function in a marketplace demanding full services.
 HUD's overall support for expanding consumer choices in the home buying process is definitely in line with the way the industry is headed.
 NAR, "The Voice for Real Estate," is the nation's largest trade association, representing nearly 750,000 members involved in all aspects of the real estate industry.
 -0- 11/2/92
 /CONTACT: Trisha Morris, 202-383-7560, or Liz Duncan, 202-383-1043, both of the National Association of Realtors/ CO: National Association of Realtors ST: District of Columbia IN: SU: EXE


DS -- DC003 -- 1434 11/02/92 09:38 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 2, 1992
Words:769
Previous Article:SCRIP, CLINICA, AGROW AND ANIMAL PHARM TO BE DELIVERED VIA ELECTRONIC MAIL BY COMTEX
Next Article:MEAD DECLARES DIVIDEND


Related Articles
NAR/HUD RENEW FAIR HOUSING COMMITMENT
NAR CHAMPIONS REAL ESTATE ISSUES AT PRESIDENTIAL CONVENTIONS
REALTORS SUPPORT PROPOSED FHA CHANGES
NATIONAL ASSOCIATION OF REALTORS RESPONDS TO FHA AUDIT ISSUED BY HUD
NEW RESPA RULES WILL HELP CONSUMERS,BUT COULD BE BETTER, NAR SAYS
NAR EMBRACES NEW LEAD-BASED PAINT REGULATIONS
NAR'S Cronk Named to U.S.-China Building Council.
EPA proposes lead-safe regulations.
Realtors(R) Prepare for Presidential Transition.
Realtors(R) Strongly Support Donovan Nomination as Head of HUD.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters