21-Day Fix?; RESPA FAQ Updated Again...
Posted by Anthony Demangone
We'll take a break from our march through the Fed's Reg Z proposal to discuss a major development on the 21-day issue.
Congressman Peter Welch (D-VT) has introduced a bill that would create a "technical fix" for the 21-day issue by amending the Truth in Lending Act to limit the reach of the controversial "21-day provision" to credit cards. We hear that the the bill, H.R. 3606, is scheduled to be considered very soon - if not today. But keep this in mind: should it pass the House, the Senate will have to act on the issue before it could become law. Our lobbyists, as well as others, have been working this issue non-stop for months.  Stay tuned.
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HUD has updated its RESPA Q and A guidance document again. For those in charge of mortgage lending, I'd take a fresh look at this Q and A document. It is now 43-pages long, and there's a good table of contents that organizes the guidance.