Consumer Law

Tedeschi Report on Effect of the New RESPA Disclosure Regulations

By Jeff Sovern

by Jeff Sovern

Bob Tedeschi's Mortgages Column in today's Times reports on the effect of the new RESPA disclosure regs, which went ino effect January 1.  According to the column, "some brokers say that borrowers are asking more questions, and are very likely becoming better informed as a result, if a bit frustrated at times. Others report a mere shift in the nature of borrower confusion."  The column also notes that a Wolters Kluwer Financial Services survey of loan officers conducted last year found that "36 percent of borrowers asked five questions or fewer during the loan process," suggesting that there's a lot of room for improvement in borrower involvement.  The new disclosures are also said to slow down the process.  I wonder if we're going to see a backlash to delays at some point, akin to the reaction to the original version of RESPA decades ago, which mandated a 12-day lag between disclosure and closing, leading to consumer anger at having to wait to move into their homes

Full post as published by CL&P Blog on February 14, 2010 (boomark / email).